Thoughts on the Current Status of Variety Vehicle Models in China's Auto Market


Last year, China's automobile production was 4,443,700, an increase of 35.20%, and sales were 4,390,800, an increase of 34.21%. The number of cars produced was 201.89 million, an increase of 83.25%, and sales were 1.917 million, an increase of 197.28%. The production and sales of automobiles have entered a new stage in 2001 and 2002. The world's automobile production ranks fourth in the world (12,247,900 units in the United States in 2002, 10,257,700 in Japan, and 5,132,200 in Germany), ranking third in car sales worldwide. (17,134,800 United States in 2002 and 579,200 in Japan). The rapid increase in market demand, the booming production and sales of automobile manufacturers, and the advancement of international rankings in automobile status have made this an exciting time when the production and sales volume of independent brands in the automotive market is small and grows significantly, regardless of the variety or model. The reality is disproportionate, it is difficult to change in a short time, and still does not cause the company to pay enough attention to it. Over time, it will threaten the healthy, stable and sustained development of the automobile industry in China. It must be possible to think deeply. KD's wind of assembly is difficult to suppress the sales of imported vehicles in domestic auto sales last year which were 125,500 vehicles, while the number of cars was 121,500, accounting for 96.81% of the total imported cars. This year's ratio is particularly striking, January and February car KD The assembly of imported parts showed a significant rebound, with a year-on-year growth of 263.72%. The assembly of spare parts for domestic cars was once popular in 2000. That year, 191,100 domestic cars were assembled in the name of imported parts, an increase of 48.94%. In 2001, it was stopped and there were 69,700 pieces of assembly vehicles, down to 19.12%. In 2002, there was a pick-up trend, with a total of 110,200 pieces of assembly vehicles, an increase of 40.87%. In 2003, the wind of KD parts assembly became more and more severe, with 121,100 pieces of assembly vehicles, an increase of 21.26%. A few years ago, hippocampus and Aeolus were all KDs started, and the high profit rate is really enviable. In 2003, it was criticized by the mass media, KD assembled more powerful, including Beijing Hyundai Sonata, FAW Car MAZDA6, FAW-Volkswagen Audi A4, Dongfeng Passenger Vehicle Nissan Sunshine, Beijing Jeep Pajero SPORT, Shenlong Company Saina, Picasso and Hainan. Mazda et al. There are media reporters who read BMW's final assembly and expressed exclamation that the final assembly of the high-end BMW is unbelievably simple. Only 4 Goodyear tires are actually made in China. Mr. Tai Yike, president of ChangAn Ford, the US president, had clearly stated that when Mengdiou was put on the market, it was almost all imported, so the price was higher. The problem also lies in the fact that many auto manufacturers have stated in foreign publicity that they have reached a certain percentage of localization. Why is there such a deviation? An expert of the Ministry of Commerce’s study of international economic and trade rules said in this analysis that after China's accession to the WTO, its industrial policy lags behind its trade policy. As multinational component companies set up factories in China, many parts and components are assembled in China and make vehicles complete. The boundaries with the parts are blurred. The government originally tilted its import quotas toward accessories in order to ease the impact of imported vehicles on domestically produced cars. However, it was counterproductive. Some local governments or state-invested enterprises used their special background to use imported parts and imported vehicles with higher import duties. Differences, the actual implementation of the whole assembly. The CEO of a major auto parts company in China has asked at a meeting of the China Association of Automobile Manufacturers recently held that “the growth of China’s vehicle sales is not proportional to the growth of domestic parts and components companies. What is the difference between the growth of vehicle sales and the purchase of foreign vehicles? There is also a disproportionate amount of data to support this. Last year, the total vehicle import value was 5.287 billion US dollars, an increase of 63.9%; and the auto parts import amount was 6.726 billion US dollars, an increase of 73.78%. The import volume and growth rate of auto parts are much higher than that of the whole vehicle. The strengthening of foreign brands is difficult to converge in the past two years, the new models are springing up, there are always 1 or 2 new models per month or off the assembly line, or enter the market, it is very eye-catching. A peculiar phenomenon has also taken place. Local brands have been replaced by foreign brands and foreign brands have been continuously strengthened. Brands are people's, made in China. This wind blows hard to converge. The new Citroen company's new models, Citroen signs grow bigger and bigger, the joint venture Chinese "Shuang Yan Qifei" Dongfeng sign not only not seen, that is even the new Chinese name, but also rather French flavor, what Elysee, Picasso; originally rich human touch The name "Fukang" disappeared. FAW-Volkswagen's Audi A6, A4 and Golf, FAW Tianjin Toyota's Vios, Dongfeng Passenger Vehicle's Sunshine, Shanghai GM's Regal and Excelle, South Asian Palio, etc., have no place of origin at the rear of the vehicle. Do not get the manufacturer's logo. Jianghuai's Ruifeng, the front face of the body is the modern sign in the elliptical oblique flower H, the body tail is JAC's English letter abbreviation JAC, neither fish nor fowl. Whether you recognize it or not, multinational car companies have actually seen China as a manufacturing base for their brand cars, “foreign man-made brands, Chinese man-made cars,” and sold in China. There is no shortage of superstitious foreign brands in the automotive market in China. There are car manufacturers. The author listened to an expert who had worked as a technical consultant for a passenger car. He said that when they wholesale dealers, they will also produce a foreign brand. Signs are given to the desired business. There are also car dealers and car decorating beauty dealers. Some of them are used as promotional means to send to users, and others are sold to users for profit. Of course, there are still major needs, there are many users, they have their own psychological needs, have their own brand ideas. Remove the Chinese brand's own signs, signs, and replace foreign brands, foreign signs, such as the southeast lioncel in the circle of the eagle mouth, was changed to three leaves of the Mitsubishi brand signage; the FAW sign on the prestige car, was three The Ellipse Toyota logo replaced; Yueda Pulit, replaced with the Kia logo. Multinational companies and Chinese companies have not raised any doubts or doubts about this peculiar phenomenon. Foreigners first felt incomprehensible, but of course they were extremely happy. GM (China) Co., Ltd. Chairman and CEO Murphy said that two things are intriguing: 1. In 1999, Shanghai GM launched Buick --- the new century, the car and the GLX are comparable in performance and price, due to the The Chinese version of the "New Century" was added to the rear of the car, and more than 90% of the buyers only recognized GLX and did not recognize the "New Century." Inexplicably, Mexico inks that in the Detroit negotiations he won, but on the market, he lost. 2. What brand does SPIKE use for SAIC-GM-Wuling? With Wuling, or Chevrolet, the market survey found that if Chevrolet was used, the vehicle price could be 10% to 20% more expensive than Wuling. China’s “Trademark Law” and the automobile industry development policy in the Opinion Draft stipulate that as long as a car is produced in China and sold in China, it must have a clear Chinese mark at the rear of the car body to show its place of origin and production company. Audi A6, A4 and Golf, Vios, Sunshine, Regal and Excelle, Palio, etc., obviously do not meet China's "Trademark Law" and the requirements of the automobile industry development policy. The export of automobiles is difficult to become a climate, but bigger but not strong. China has become a major exporter of motorcycles. Last year, 896.34 million motorcycles were exported, and 594.17 million bicycles with auxiliary engines were not listed. This is a great achievement. Chery Automobile has achieved fruitful results in the competitive landscape of the international automotive market. By March this year, more than 3,200 vehicles had been exported without CKD parts, including more than 1,600 vehicles in the three months this year. This year it is expected to export 10,000 units of complete vehicles and CKDs. The models will cover Fengyun, Qiyun, QQ and Oriental Sons. Geely will also have 5,000 full-vehicle exports this year. The export of self-owned brand cars has achieved a welcome step. Several Chinese and foreign joint ventures have a small amount of exports, such as last year's GL10 exports to the Philippines, POLO exports to Australia, and this year there may be nearly 20,000 Sonata exported to Russia. This is of course pleased. Unfortunately, it is understood that these exports are almost exclusively implemented through foreign sales networks. This is an integral part of the global strategy of multinational corporations. The export of Chery Automobile and the export of several Sino-foreign joint venture products have not yet formed the climate for China’s auto export market. The soft underbelly of China’s auto exports is obvious. Last year, the number of auto exports was 47,400, of which 0.28 million were passenger cars. Although it seems to increase by 108.56% and 194.01% respectively, compared with the sales and sales of more than 4 million cars and 2 million cars and cars that year, the former is less than 1%, and the latter is even weaker, accounting for only 0.14%. Moreover, China’s exports are more concentrated in developing countries and regions such as the Middle East, Africa, and Southeast Asia. This is even more ashamed than the status of the fourth largest automobile producer. It should be acknowledged that automobile import control is strict. In principle, if it is close to the imported domestic-made car model, it will in principle be less imported and not imported. Even so, there were still 171,900 vehicles imported, including 103,000 cars. After more than 20 years of reform and opening up, many auto companies in China have gone a step further. Comparing imports and exports, China’s auto manufacturing companies are still inward-looking enterprises, exporting only 1%, the domestic market accounted for 97%, in addition to the domestic market, the brand of multinational companies took the lead. Compared with Brazil and Mexico: the gap is even greater and the export volume is too small. In 2002, Brazil produced 1.792,700 units, domestic sales 1,385,200 units, and 407,000 units were exported to foreign countries, accounting for 22.73% of total production; Mexican production was 1,821,400 units, domestic sales were 977,400 units, and 844,000 units were sold abroad. The total production of 46.34%. Compared with domestic home appliances and IT industries, they have not formed such a large scale and have not formed such strong competitiveness. Among the key commodities exported in January-February this year, automobiles are not ranked in the customs; auto parts and components Into the export 460 million US dollars, an increase of 47.3%. Among industrial products, televisions, handhelds, and automotive radiotelephones, integrated circuits, and microelectronics components have surpassed auto parts. TVs 6.69 million units, an increase of 41.6%, US$600 million, an increase of 94.9%; Handheld and car radiotelephones were US$1.59 billion, an increase of 67.0%; Integrated circuits and microelectronics components were 2.19 billion, an increase of 38.2%, US$1.37 billion. 101.6%. It can be seen that China's auto companies are still small and weak; big ones are big and not strong. The self-owned brand car was sluggish. In the sales of 1,971,600 cars in China last year, there were 90,400 self-owned brand Chery cars, nearly 30 thousand cars in Huachen China, 33,000 cars in Hafei, and 20,000 cars in Qinchuan, and 31,400 cars in Geely, Jiangnan and Tongtian. A total of nearly 248,800 vehicles. In the first quarter of this year, the number of independent brand Chery 24,500 units, Brilliance China 0.33 million units, Hafei 80,900 units, Qinchuan 40,800 units, and Geely, Jiangnan and Tongtian 2,80,000 units, a total of only 69,500 units, compared with total sales , The market share is only 12%. This is the reality of the domestic market for China's self-owned brands. At a time when our country’s auto brands had a heated discussion, the top executive of a Chinese largest automotive multinational company specially invited the famous reporter of this discussion. He believes that the brand is purely a business decision for business operations, and China does not discuss independent brands. With independent research and development capabilities, we should discuss how to localize and how to make big sales. Only by maximizing sales can we create more job opportunities. Branding is a long time. He compared "Zhonghua" and "Buick" and said that the name "Zhonghua" is localized but designed in Italy, R&D, testing in Germany, employment opportunities for foreign countries; the name "Buick" is not localized, but R & D, design China. In his view, it does not matter which country the brand belongs to. What is important is the market and the interest. It is the market share. But he also finds it difficult to justify himself. He said that Chevrolet was originally a French brand, Pontiac and Cadillac are names of American Indians, Buick is a Scottish name, and Saturn is the name of the United States. Today, they are all common car brands. When the reporter asked if you could transfer the Buick brand to China and transfer it to Shanghai GM, the top executive would not answer. Another general manager of the foreign joint venture that has just left the company recently said that he understands that Chinese people want to have their own brands, and that Chinese people actually have their own brands. Today, global competition is a very high level of competition and changes rapidly. In this context, it is very difficult to establish your own national brand. Not only technology, but also experience and long-term accumulation. From one side, the boss expressed that China has lost this pity. The people in the auto industry in China are not the ones who do not want to engage in independent brands. The problem is that they think that it is still difficult to do it now, it takes time, it takes decades to accumulate; it needs capital, it needs a lot of money to accumulate; it needs scale, it needs to be very The accumulation of large-scale production; the need for technology, the accumulation of many technological advancements; the need for talent, the accumulation of many talents. To "truly loneliness for 20 years." The Group of Experts organized by the Ministry of Science and Technology organized an "Automotive Industry with Independent Intellectual Property Rights Brand" research group. Some academicians believe that China's auto industry should have its own brand of core technology, an independent large country, if there is no independent brand, if the automotive technology "Hollowization" will not only be an economic issue, but will also affect the security of the country and the question of whether or not it can remain independent in politics. Under the Ministry of Education's special approval of the “China Automotive Industry Competitiveness Research” project of the Ministry of Education, a questionnaire survey on how ordinary people view the development prospects of the Chinese auto industry shows that more than 80% of respondents claimed that China must develop its own brand. car. Several companies including Geely, Chery, Hafei and Brilliance, as well as Changan Automobile, compared with the big brothers of several large groups and several Sino-foreign joint ventures, whether it is capital and technology, scale and talent, etc. Accumulation, I am afraid, can not be the same language. Geely’s actions in self-development may be seen as a small dish in the eyes of Big Brother. However, they are actually doing as a major event. They already have a little eyebrows, and their own brand cars have finally won a 10% market share. Of course, the big groups are really engaged in the development of independent brands. Their strength, speed, and strength are inferior to their younger brothers, and their performance is not as significant as their younger brothers. If Geely, Chery, Hafei, Brilliance and Changan are the guerrillas and small forces in the car manufacturing industry in China, then the joint venture car companies of several big groups are regular troops and large troops. A large company that has its own brand, has its core competitiveness, has international competitiveness, and is a big and strong company before it can sustain its development. "After more than 20 years of hard work, China's auto industry has a certain foundation and a considerable scale. To develop an independent brand and to develop an independent development capability, we should really mention the agenda." Jiang Lei, executive vice chairman and secretary-general of the China Association of Automobile Manufacturers, made such a statement at the association's annual meeting in 2004. Jiang Lei hopes that automobile companies will pay great attention to it and hopes that the state will give policy encouragement and support as a whole. From the government's point of view, on the one hand to create an environment for the cultivation and growth of local automotive talent, on the other hand, the government should concentrate more on self-owned brands when it comes to centralized procurement, and there are more tax and financial incentives for self-owned brands. Chang'an Group Yin Jiaxu, chairman of the board of directors, said that they have developed independent intellectual property rights for their products abroad. When they enter the customs, they must collect 17% of the tariffs. The sample car is brought back for research. When entering the customs, the entire development cost should be divided by the number of sample vehicles, and the tariffs should be collected. More expensive than imported Mercedes and Audi. From a social point of view, cultivating consumers to purchase and use self-owned brands and enhancing the community's confidence in and degree of self-development of brand cars require positive guidance from public opinion and creates a loose environment conducive to the purchase and use of self-owned brands. . From a business point of view, especially Chinese-foreign joint ventures, we must study and reflect on how to truly “change to technology” in “market-for-technology” and switch to core technologies. Otherwise, China's auto output will be even higher. That is the glory of other people's brands. At most, I am a big country in automobile production, and not a strong country in automobile manufacturing.