China's autos need to “go out” urgently need the government to escort

On September 12, the State Council passed the "Several Opinions on Promoting Steady Growth in Foreign Trade," and people in the auto industry are aware that this support policy should be "a move in the snow" for the automotive industry. However, opinions have always tended to be "broad and wide" for the country's foreign trade behavior. Specific support policies for automobile exports have not been introduced.

The anxiety of Chinese automakers is evident. In the domestic market, self-owned brands have fallen steadily; the international market has become a new battlefield for independent brands, but Chinese autos are “outgoing” and are particularly hard.

The government sets up the stage and the company sings. China’s auto industry needs government support to go global. This platform needs to “make a good deal” for auto exports. On the other hand, it must “have a good road” overseas, and internal and external development can make Chinese autos “go global”.

Work together to make basic skills

In recent years, China’s overseas markets have grown rapidly, but the “Made in China” reputation is not good. Especially in the European market, Chinese cars still stand on the "primary" threshold: the Chinese automobile brand has a vague awareness and the label "Made in China" largely represents low quality and low prices.

Under the current situation, the internal environment of China's autos "going out" is still lagging behind. Chang Gengshen, assistant general manager of Great Wall Motors International Sales Department, told reporters that before Chinese autos “going out”, they need to do three homeworks: breakthrough in core technology, improvement of parts and components systems, and cultivation of overseas operations personnel.

At present, there are more than 120 auto companies in China. However, the privileged economy of each country has made it difficult for China’s auto industry to form a synergy. These three compulsory courses are bound to depend on the strength of the country. Breakthrough in core technology is a top priority, not only the bottleneck of China's auto industry, but it is also an important obstacle to the survival of Chinese cars overseas. Secondly, the government needs to further improve the entire automobile industry chain and increase the value-added of the industry in terms of supporting and quality of automotive core components. While the hardware and equipment are ready, the reserve of talents will play a pivotal role as the "soft power" of China's autos going out.

Controlling the export chain

During the "two sessions," Great Wall Motor President Wang Fengying took the bill to Beijing. If the strategy of “China's autos going out” is not supported by the national platform, so many companies need to go out and their levels are uneven. In the short term, it is impossible to establish a good Chinese auto brand image.” She believes that the government needs to build A compound platform provides specific guidance and assistance for investment models, and can provide clear constraints and incentives for vehicle trade.

"For example, the problem of certification standards, domestic cars need to go to the European market and require too many ups and downs, domestic companies must go one by one to explore, adapt, and then change." Certification standards in exporting countries plagued Great Wall Motors and other Chinese car companies To a great extent, it caused a waste of time and resources. Therefore, in this sense, under the advocacy of the government, improving the capacity and level of commodity inspection to meet and adapt to the environment of different markets has become the first to solve the problem.

In addition to opening up ideas from the beginning of exports, the transformation of government functions requires efforts on the entire chain of exports. Japan, a neighboring country with water and clothing, is a ready-made example. In fact, the problem of “sea shipping” that currently affects China’s auto exports is exactly what Japan is good at. Japan has always been known as a "consortium" economic development model. Nowadays, most ro-ro ships are controlled by Japan and South Korea, and China is a blind spot in this region. From the core technologies, parts and components, transportation, overseas market operations management and services and many other aspects, Japan’s control over the export of the entire chain has earned more profits and opportunities for its auto exports.

Improve the coordination mechanism

In China's traditional export market for automobiles, the phenomenon of "fraternal frustration" has occurred from time to time, hiding the risk of "price wars escalating." How to avoid risks? We may wish to learn about Japan's "clustering" thinking.

In the case that many Chinese enterprises are hard to screw into a rope, the government can reduce the situation of "frauding each other."

In addition, a coordination mechanism should be established and improved, and a simple and quick service mechanism can do more with less. In terms of overseas M&A, Fu Jun, vice chairman of the All-China Federation of Industry and Commerce, pointed out: “Now is the best time to expand and strengthen mergers and acquisitions. I hope that various departments will introduce some supporting policies to support Chinese companies’ overseas acquisitions, specifically to simplify the approval process. Unreasonable legal restrictions."

The "going out" of Chinese autos is not only a matter of the auto industry but a macroscopic issue of the entire national economy. To celebrate the 18th National Congress, Chinese autos “going out” need a good medicine from the government to broaden the overseas journey of Chinese autos. It also needs the spring breeze of the 18th National Party to blow the hearts of Chinese automakers.

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