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“Don’t mention that after the auto industry enters a period of strategic opportunities, it has again set off a new round of car fever, which is very terrible.†At the Global Automotive Forum held on October 17, 2013, Zhu Fushou, general manager of Dongfeng Group, was so call.
Rational choice of opportunities
After 60 years of development, especially the explosive growth of the previous years, China has become the world's largest automotive country. In 2012, China's automobile production and sales volume reached 19.29 million and 19.3 million, respectively, which accounted for about 25% of the world's automobile production and sales. By the end of last year, China’s car ownership reached 122,000, accounting for the total global car ownership. 10% of the amount. In the first nine months of this year, China has completed production and sales of 15,938,400 vehicles and 15,858,100 vehicles, which represents an increase of 12.78% and 12.7% year-on-year respectively. This year's growth rate has significantly increased compared with the previous two years of micro-growth.
It can be said that 60 years of development has created a Chinese automotive independent company. A 30-year joint venture has created a brand new corporate model, and the open policy has enabled multinational car companies to successfully operate in the Chinese market. The development of China's auto industry not only depends on the invisible hand of the market. At the national level, along with economic growth and reform of the political system, the rigid demand for automobiles is gradually released, and a very good strategic opportunity period follows.
Although the name of the "car giant" is very loud, in essence, there is still a big gap between China and the world. In the words of Wang Ruixiang, president of the China Federation of Machinery Industry, China’s auto industry’s independent innovation capability is not strong, the industrial chain is imperfect, and the deep-seated contradictions between industry and market development and resources, transportation, energy, and the environment are still outstanding. Lack of world-renowned auto companies and Chinese brands.
These kinds of realities are always reminding us that although the success of the previous stage has brought us fruitful results, the road to revolution is still long. On the road to a mature automobile industry in the world, opportunities and crises coexist in development. We still need to treat it with a rational attitude.
“In this period of strategic opportunities, for our automotive industry, for our automotive companies and for our automotive brands, not all are opportunities. We have chosen the right, which is the opportunity. We have chosen the wrong one and we have eliminated it.†Zhu Fushou said.
Explain the three major contradictions
How to measure right and wrong choices requires a clear understanding of the potential contradictions in the strategic opportunity period. In this regard, Zhu Fushou made an interpretation from three aspects.
Bear the brunt of the contradiction between the joint venture brand and its own brand.
“The domestic competition between foreign brands and independent brands is the main contradiction at this stage. If you do not see this contradiction, you are making mistakes,†said Zhu Fushou.
As more and more joint ventures have initiated development momentum, more and more consumer demand has emerged, and joint-venture car companies with large-scale advantages have gradually entered the inherent market of their own brands on the basis of their early accumulation, and competition has become more and more challenging. The price of joint venture products with strong brand power has been under investigation, which has caused a batch of batches of self-owned brands to die at the beach, and the “high-end model†once conceived by the self-owned brand has almost become unsuccessful. It has retired to maintain its old position and become its own brand in tearing. A common practice.
After 2009, the new Sail low-cost access to the world has been directly down to 60,000 yuan, and this year FAW Group also disclosed that it will research and develop independent products with the German Volkswagen, Sword refers to the low-end car market, while the Ford car ceo Mulally It has also said that Ford is considering launching a new entry-level compact car, targeting low prices as the main selling point for the global market.
According to the data from the All-China Federation of Associations, the market share of the core self-owned brands, including FAW, SAIC, Dongfeng, GAC, BAIC and Chery, etc., was only 7.8% in 2012, and FAW-Volkswagen, Shanghai Volkswagen, Shanghai The market share of joint venture brands such as General Motors reached 28.3%, and the former was less than 1/3 of the latter.
The low-end self-owned brands are faced with increasingly difficult difficulties.
In addition, Chinese auto exports are also undergoing heavy checks.
"The determination of China's auto industry to move toward internationalization is irreversible, but at the same time, our internationalization process cannot be smooth with trade protectionism and the global economy," said Zhu Fushou.
In 2012, a number of Chinese car companies, including the Great Wall, submitted their applications and wished to participate in the Moscow Motor Show. However, they failed to get permission to enter the main exhibition area and could only display in the parts and components area. In fact, Russia was the largest export market of the Great Wall last year. "Since the coexistence of the old and new legal systems, there are many contradictions and conflicts, and our direct competition with local Russian products is inevitable. This may be affected by local companies and industries. The resistance of the Great Wall Motors pointed out.
In addition, as one of the important export markets of China's autos, Brazil also formally implemented a new trade protection policy in December 2011, which raised the import tariffs for cars with a localization rate of less than 65% by 30%. This is an export to China with price advantages. The self-owned brand cars have caused a major blow. In 2012, China’s exports of cars to Brazil have decreased by 79.6%.
Zhu Fushou pointed out that the third point of the contradiction in the strategic opportunity period is the rigid demand for automobiles and sustainable development.
Since last year, haze weather has been frequent in Beijing, and the PM2.5 index has remained high. Air pollution has become the focus of discussion in all sectors of society. The reason for this, many experts have pointed out that it is the linear growth of car ownership, which has caused serious urban congestion and increased automobile exhaust emissions, while too-imperfect oil products have added a sharp edge to air pollution.
Recently, it was reported by the media that in order to control smog pollution, Beijing preliminarily made it possible for citizens to learn and limit motor vehicles within 12 hours in advance. For three consecutive days, serious pollution will occur. “Stop production, parking, work stoppages, parking, parking, parking, and suspension of classes. "Measures, and limit the number of single and double number.
The impact of automobiles on the environment is obvious, and the increase in the number of cars also brings serious traffic congestion pressure. Especially in big cities such as Kitakami, the government has introduced various restrictions and restrictions on purchases in order to ease the traffic, with a view to limiting the number of vehicles. Increased number of motor vehicles to solve traffic congestion.
Although there are contradictions and challenges, but for the future development of China's auto industry, major companies also need to pragmatic and rational choice.
“We need to handle the relationship between quantity expansion and scale efficiency, and better improve our own product planning capabilities, R&D capabilities, manufacturing capabilities and marketing capabilities,†said Zhu Fushou.
The contradiction in the strategic opportunity period exists in the domestic market and the international market. "The domestic market is the main contradiction, and the international market is the strategic choice." For enterprises, it is necessary to do both things, "but from the weight and practical grasp, Do your best."
In Zhu Fushou's words, “In the period of China’s strategic opportunity, it is an opportunity as well as a challenge. We must treat this issue dialectically.†The choice of companies more reflects a responsibility and mission, and it is necessary to correctly understand the period of strategic opportunities. Even in the positive growth of the industry, we must maintain a rational mind and do not create a new impulse.
Zhu Fushou: Auto companies need to clearly understand potential contradictions in the strategic opportunity period