Recently, Shi Shijie, Deputy Director General of the Department of Industry of the Ministry of Commerce, stated at the “Government Policy and China Autonomous Automobile Industry Seminar†held by the China Auto Brands Automobile Expo that the export momentum of self-owned brands is better than that of the domestic market, and the auto industry in China is developing. The gap between growth and the world is gradually narrowing.
The gap with the world is narrowing
In the past ten years, the export scale of automotive products has been developing rapidly. The number of auto export vehicles has increased from 19,000 vehicles to 852,000 vehicles, an average annual increase of 46.3%. The export value has increased from 200 million U.S. dollars to 10.96 billion U.S. dollars, with an annual growth of more than 50%. The export volume of automobile vehicles exceeded US$10 billion for the first time in 2011, achieving a historic breakthrough. The export volume of top ten self-owned brand companies such as Chery and Great Wall has accounted for 80% of the country's auto exports.
Zhou Shijie analyzed that from the perspective of market structure, the vehicle export market covers the whole world, and Latin America has become the most important export market. The proportion of vehicle exports to developing countries and regions exceeds 90%. In 2011, 280,000 vehicles were exported to the Latin American market, an increase of 121%, of which 144,000 were exported to Brazil, an increase of 312%, and Latin America surpassed Asia. It has become the largest export market for Chinese automotive products. From the perspective of product structure, the share of passenger car exports has reached 54%, and the sedan has become the largest export vehicle. China's vehicle exports have covered various types of cars, passenger cars, trucks, and other models, changing the structure of a single export product consisting mainly of commercial vehicles such as trucks. In 2011, China exported 372,000 cars, an increase of 107%, accounting for 43.7% of the total.
For the first time, the sedan has become China's largest export type vehicle. From the perspective of overseas development, the pace of internationalization of auto companies is accelerating, and many key enterprises have further promoted foreign investment and construction of points in the incentive to expand vehicle exports. Factories, overseas mergers and acquisitions, and enhance their core competitiveness. Chery invested US$ 700 million in Brazil to build an annual production of 170,000 complete vehicle factories. Huachen and Egyptian BAG Group set up an assembly plant in Egypt and the sales volume has reached more than 20,000 units. CITIC Card Wheels Co., Ltd. has acquired a wholly-owned German KSM foundry group and obtained chassis and powertrain technology. From the perspective of international marketing services, some auto companies began to consciously strengthen the construction and distribution of overseas after-sales maintenance service outlets. Great Wall Motors has established more than 800 maintenance outlets overseas. The overseas marketing service network has basically covered major exports. In the market, Yutong Bus has stored a total of 40 million yuan in parts warehouses in Canada, Dubai, and Cuba, shortening the cycle of overseas parts supply. In the past ten years, the automobile industry has developed rapidly, exports have continued to grow, and business operations have become increasingly diversified. The independent R&D and technological innovation capabilities have been gradually improved, manufacturing processes and management levels have been significantly enhanced, and product development, system support, and modular supply capabilities are continuously improving. All these show that the auto industry in China is growing and the gap with the world is gradually narrowing.
Export still has deep problems
When seeing the results, we should also see the problems existing in China's auto exports at this stage. The first is the general homogenization of products. The overall investment in R&D of China's auto industry is not high. The export products are mostly medium-to-low grade, and the degree of differentiation is relatively low. Export enterprises rely on low-price competition and often target the market. The level of profitability is generally low. There are more than 50 car brands in Canada, 96 brands in Peru, and 20 Chinese car brands in Colombia, but the market share is only 1%.
Secondly, the consistency of products needs to be improved. Many products can meet the certification requirements of the importing countries, but they cannot guarantee the consistency of product quality in batch supply. In addition, overseas customers generally reflect that the adaptability and stability of Chinese automobiles for the local market are still not very satisfactory. For example, the longevity of auto engines in hot and cold regions is decreasing, and the failure rate of key components such as chassis and transmissions is high. For example, some small problems, such as the door handle being easily broken and the electric fan being easily damaged, occur from time to time, but the effect is still relatively large.
In addition, the marketing and after-sales service system is not perfect, most companies rely heavily on local agents for overseas marketing, after-sales service, etc. There are issues such as tight supply of accessories, lagging service response, and long maintenance cycles. In South Africa, the average maintenance time of our vehicles lasts for several months. Only about half of the more than 90 Chinese car brands in Peru provide after-sales services. In the Philippines, our country’s automobiles not only have fewer service outlets, but also provide one-year warranty service. The cars in Japan and South Korea provide services for three to five years.
Zhou Shijie said that the main reason for these problems is due to the lack of advanced business concepts, especially the ability of independent innovation and overall strength. It is still based on price as the main means of competition, relying on low-cost large-scale expansion to develop. This extensive development model, in the long run, is difficult to support the sustained development of auto exports, especially in the current situation, the impact of the international financial crisis will remain, the situation of shrinking external demand will persist for a long time, and the developed countries will return to the industry. Trade protectionism has intensified and international competition has become more intense. Rising renminbi, rising labor costs, land environmental resources, and other constraints have increased the advantage of low-cost competition.
Strengthen export from 5 aspects in the future
Zhou Shijie said that the country will strengthen auto exports from five aspects in the future:
First, speed up the construction of national auto and auto parts export bases and enhance the export technology base of auto products. At present, 12 auto export bases have been awarded, and plans for export bases are well planned. Independent innovation and technological transformation of export base enterprises are encouraged, support for public service platforms is increased, and technology research and development, information services, product certification, inspection and testing are established. Staff services and other public service platforms.
Second, encourage enterprises to use financial instruments to improve their international competitiveness. Actively play the role of export credit insurance, reduce business risks, strengthen cooperation between auto companies and various financial institutions, and build a new type of financing platform for export of automotive products.
Third, encourage enterprises to enhance their independent innovation capabilities and optimize the structure of their export products. Support auto companies to strengthen the construction of research and development systems, encourage enterprises to establish overseas research and development centers, actively guide the export of energy-saving and new energy automotive products, guide enterprises to adopt advanced foreign technology standards, actively integrate with international standard systems, and promote enterprises to improve production consistency , steadily improve the quality of automotive products exports.
Fourth, actively respond to and resolve trade frictions and create a good environment for automobile exports. Accelerate the establishment of an early-warning mechanism for trade friction in China's auto products, effectively respond to the trade barriers faced by China’s auto exports, promote bilateral mutual recognition agreements with key countries on product inspection results, strengthen the establishment of a corporate credit system, and establish a directory of Chinese auto parts suppliers. , further standardize export order, improve access thresholds, and provide guidance on corporate classification.
Fifth, we must vigorously implement the strategy of going global and increase international market development efforts. Encourage enterprises or alliances with comparative advantages to invest overseas, do a good job in overseas production strategies, support enterprises in establishing and improving overseas marketing networks, improve after-sales maintenance services, encourage enterprises to compete for high-quality brand core technologies and marketing channels through cross-border mergers and acquisitions, and make full use of bilateral The cooperation mechanism promotes international cooperation and exchange among auto parts enterprises.
The gap with the world is narrowing
In the past ten years, the export scale of automotive products has been developing rapidly. The number of auto export vehicles has increased from 19,000 vehicles to 852,000 vehicles, an average annual increase of 46.3%. The export value has increased from 200 million U.S. dollars to 10.96 billion U.S. dollars, with an annual growth of more than 50%. The export volume of automobile vehicles exceeded US$10 billion for the first time in 2011, achieving a historic breakthrough. The export volume of top ten self-owned brand companies such as Chery and Great Wall has accounted for 80% of the country's auto exports.
Zhou Shijie analyzed that from the perspective of market structure, the vehicle export market covers the whole world, and Latin America has become the most important export market. The proportion of vehicle exports to developing countries and regions exceeds 90%. In 2011, 280,000 vehicles were exported to the Latin American market, an increase of 121%, of which 144,000 were exported to Brazil, an increase of 312%, and Latin America surpassed Asia. It has become the largest export market for Chinese automotive products. From the perspective of product structure, the share of passenger car exports has reached 54%, and the sedan has become the largest export vehicle. China's vehicle exports have covered various types of cars, passenger cars, trucks, and other models, changing the structure of a single export product consisting mainly of commercial vehicles such as trucks. In 2011, China exported 372,000 cars, an increase of 107%, accounting for 43.7% of the total.
For the first time, the sedan has become China's largest export type vehicle. From the perspective of overseas development, the pace of internationalization of auto companies is accelerating, and many key enterprises have further promoted foreign investment and construction of points in the incentive to expand vehicle exports. Factories, overseas mergers and acquisitions, and enhance their core competitiveness. Chery invested US$ 700 million in Brazil to build an annual production of 170,000 complete vehicle factories. Huachen and Egyptian BAG Group set up an assembly plant in Egypt and the sales volume has reached more than 20,000 units. CITIC Card Wheels Co., Ltd. has acquired a wholly-owned German KSM foundry group and obtained chassis and powertrain technology. From the perspective of international marketing services, some auto companies began to consciously strengthen the construction and distribution of overseas after-sales maintenance service outlets. Great Wall Motors has established more than 800 maintenance outlets overseas. The overseas marketing service network has basically covered major exports. In the market, Yutong Bus has stored a total of 40 million yuan in parts warehouses in Canada, Dubai, and Cuba, shortening the cycle of overseas parts supply. In the past ten years, the automobile industry has developed rapidly, exports have continued to grow, and business operations have become increasingly diversified. The independent R&D and technological innovation capabilities have been gradually improved, manufacturing processes and management levels have been significantly enhanced, and product development, system support, and modular supply capabilities are continuously improving. All these show that the auto industry in China is growing and the gap with the world is gradually narrowing.
Export still has deep problems
When seeing the results, we should also see the problems existing in China's auto exports at this stage. The first is the general homogenization of products. The overall investment in R&D of China's auto industry is not high. The export products are mostly medium-to-low grade, and the degree of differentiation is relatively low. Export enterprises rely on low-price competition and often target the market. The level of profitability is generally low. There are more than 50 car brands in Canada, 96 brands in Peru, and 20 Chinese car brands in Colombia, but the market share is only 1%.
Secondly, the consistency of products needs to be improved. Many products can meet the certification requirements of the importing countries, but they cannot guarantee the consistency of product quality in batch supply. In addition, overseas customers generally reflect that the adaptability and stability of Chinese automobiles for the local market are still not very satisfactory. For example, the longevity of auto engines in hot and cold regions is decreasing, and the failure rate of key components such as chassis and transmissions is high. For example, some small problems, such as the door handle being easily broken and the electric fan being easily damaged, occur from time to time, but the effect is still relatively large.
In addition, the marketing and after-sales service system is not perfect, most companies rely heavily on local agents for overseas marketing, after-sales service, etc. There are issues such as tight supply of accessories, lagging service response, and long maintenance cycles. In South Africa, the average maintenance time of our vehicles lasts for several months. Only about half of the more than 90 Chinese car brands in Peru provide after-sales services. In the Philippines, our country’s automobiles not only have fewer service outlets, but also provide one-year warranty service. The cars in Japan and South Korea provide services for three to five years.
Zhou Shijie said that the main reason for these problems is due to the lack of advanced business concepts, especially the ability of independent innovation and overall strength. It is still based on price as the main means of competition, relying on low-cost large-scale expansion to develop. This extensive development model, in the long run, is difficult to support the sustained development of auto exports, especially in the current situation, the impact of the international financial crisis will remain, the situation of shrinking external demand will persist for a long time, and the developed countries will return to the industry. Trade protectionism has intensified and international competition has become more intense. Rising renminbi, rising labor costs, land environmental resources, and other constraints have increased the advantage of low-cost competition.
Strengthen export from 5 aspects in the future
Zhou Shijie said that the country will strengthen auto exports from five aspects in the future:
First, speed up the construction of national auto and auto parts export bases and enhance the export technology base of auto products. At present, 12 auto export bases have been awarded, and plans for export bases are well planned. Independent innovation and technological transformation of export base enterprises are encouraged, support for public service platforms is increased, and technology research and development, information services, product certification, inspection and testing are established. Staff services and other public service platforms.
Second, encourage enterprises to use financial instruments to improve their international competitiveness. Actively play the role of export credit insurance, reduce business risks, strengthen cooperation between auto companies and various financial institutions, and build a new type of financing platform for export of automotive products.
Third, encourage enterprises to enhance their independent innovation capabilities and optimize the structure of their export products. Support auto companies to strengthen the construction of research and development systems, encourage enterprises to establish overseas research and development centers, actively guide the export of energy-saving and new energy automotive products, guide enterprises to adopt advanced foreign technology standards, actively integrate with international standard systems, and promote enterprises to improve production consistency , steadily improve the quality of automotive products exports.
Fourth, actively respond to and resolve trade frictions and create a good environment for automobile exports. Accelerate the establishment of an early-warning mechanism for trade friction in China's auto products, effectively respond to the trade barriers faced by China’s auto exports, promote bilateral mutual recognition agreements with key countries on product inspection results, strengthen the establishment of a corporate credit system, and establish a directory of Chinese auto parts suppliers. , further standardize export order, improve access thresholds, and provide guidance on corporate classification.
Fifth, we must vigorously implement the strategy of going global and increase international market development efforts. Encourage enterprises or alliances with comparative advantages to invest overseas, do a good job in overseas production strategies, support enterprises in establishing and improving overseas marketing networks, improve after-sales maintenance services, encourage enterprises to compete for high-quality brand core technologies and marketing channels through cross-border mergers and acquisitions, and make full use of bilateral The cooperation mechanism promotes international cooperation and exchange among auto parts enterprises.
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