National Development and Reform Commission: The market share of self-owned branded passenger vehicles exceeds 60%


Although the controversy over the overcapacity in the auto industry continues, the National Development and Reform Commission has issued a Notice on Several Opinions on Accelerating Structural Adjustment of the Auto Industry (the "Notice"). Recently, the reporter learned from the relevant departments of the National Development and Reform Commission that the "Notice" has begun "signing" and will be formally announced in the near future.

"It can be said that this is another important document for the country to guide the sustainable development of the automotive industry." One person involved in the drafting said: "Notice" has two major characteristics: First, the use of a scientific concept of development to solve the current automobile industry structure The issue of overcapacity caused by irrational sex; secondly, it echoes the national policy of independent innovation and promotes the auto industry's ability for independent innovation. According to the reporter’s understanding of various aspects, the starting point of the “Notice” is to gain more space for the independent development of the Chinese auto industry and make the independent brand the main force for the development of the Chinese auto industry.

The backwardness of the competitiveness of China's auto industry has caused people to attach great importance to last year. The conclusion of the “Research Report on the Evaluation of China's Automobile Industry International Competitiveness” (the “Report”) jointly completed by the Ministry of Commerce’s Industrial Injury Investigation Bureau and the China Automotive Technology and Research Center shows: China's auto industry comprehensive competitiveness index is 41.7% in the United States, 42.4% in Japan, 47.3% in Germany, and 61.6% in South Korea, far behind these auto industry powers.

The “Report” evaluates the international competitiveness of Chinese auto companies in this way. “After comparing and analyzing the 8 indicators in the four major aspects of market performance, efficiency and efficiency, research and development capabilities and scale, China’s auto companies and transnational corporations have huge Gap, international competitiveness is very low."

In 2004, GM, Volkswagen, and Toyota had global market share of 12%, 7.5%, and 9.9% respectively, and FAW and Dongfeng accounted for 1.4% and 0.8%.

In research and development, our enterprises are weaker. In absolute terms, FAW and Dongfeng invested RMB 1.283 billion and RMB 886 million in R&D expenditure in 2004. There is still a huge gap compared with 2002's 5.8 billion U.S. dollars, 2.461 billion U.S. dollars, and 3.864 billion U.S. dollars. Judging from the relative amount, FAW and Dongfeng’s R&D expenditure in 2004 accounted for approximately 1% of sales revenue, while GM, Volkswagen, and Toyota’s in 2002 were 3.10%, 3.14%, and 3.64%, respectively. The "Report" pointed out that: China's auto industry's ability to independently develop is poor, compared with the auto industry's powerful country, its own development capacity is less than half of the average of five countries.

Industrial structural "unhealthy" is the key

"Because of the lack of core technology in domestic capital, the high-end part of the automobile industry value chain has a tendency of being controlled by foreign capital. When the capital size of domestic capital and foreign capital is 2:1, the profit distribution ratio of domestic and foreign investment is 1:2. The ratio of returns is 1:3. In terms of return on capital, if the state-owned enterprises and foreign-funded enterprises compare, it is 1:10.” An authoritative source in the auto industry told reporters.

There are many factors that contribute to low competitiveness, but the most critical is that the industrial structure is "unhealthy". What is the auto industry competition? Competition quality, match performance, price. All these are constrained by the scale. Without a certain scale and a certain amount of batches, they cannot reach a certain level. The automobile industry is not a "car industry."

However, an indisputable fact is that the "scattered, chaotic, and bad" status of China's auto industry still exists seriously. Statistics from the China Association of Automobile Manufacturers show that in 2005 there were 145 auto vehicle manufacturers in China, 16 more than in 2004, and 536 auto-remodeling plants, an increase of 20 over the previous year. However, there are only 10 vehicle companies that sell more than 100,000 vehicles; only about 30 of them sell 10,000 vehicles, accounting for about one-fifth of the total.

The China Automotive Engineering Society and the China Automotive Technology and Research Center have jointly completed the national topic of “A Study on the Measures for the Cultivation of Autonomous Brands in China's Auto Industry and the Development of Independent Development Capability” (abbreviated “Research”) with the following description: “Product Additions Low value, low per capita benefit, and small market share are common features of domestic companies, which makes it more difficult for companies to use funds for R&D from product benefits.”

The "Research" also pointed out that the influence of the recipient system and the mechanism, investment in heavy production capacity, innovation, re-introduction of light digestion, heavy hardware and software, heavy local problems to solve the problems of light system integration and other issues in many companies still exist.

Bigger and stronger self-owned brand is the core content of "Notice" adjustment

"If you want to rule, spread, chaos, and difference, one is to use the power of the market, and the other is to create a restructuring environment for the government to form a scale. It is reported that the "Notice" regards the adjustment of industrial organization as the core content of structural adjustment. A series of policy measures, such as the guidance of joint reorganization, strict implementation of the “automobile industry development policy”, raising investment barriers, and supporting independent innovation.

The purpose of the government's creation of a reorganization environment is to cultivate an independent brand Dagang Automobile Group with international competitiveness. In this way, it can be said that the "Notice" will be in the industry investment projects, entry barriers, and specifically reflect the requirements for independent development and independent brands. At the same time, it provides financial and taxation policy support for the autonomous development of auto companies.

According to the reporter's understanding, the forthcoming "Eleventh Five-Year Plan for the development of the automobile industry" outlines very clearly: "The development of independent brands will continue to increase the domestic market share of self-owned brand products, including the domestic market share of self-owned brand passenger cars. It must be raised to more than 60%.” This is also one of the government’s true intentions of urging to adjust the structure of the auto industry in the first year of the 11th Five-Year Plan.

Reporter Chen Jingyi
View related topics: independent brands, where to go?


Bourdon Tube Pressure Gauge

Bourdon Gauge,Bourdon Tube Gauge,Bourdon Pressure Gauge,Bourdon Tube Pressure Gauge

HONGQI INSTRUMENT (CHANGXING) CO.,LTD , https://www.hongqi-instrument.com