Thinking of Building China's Auto and Parts Independent Brands


After years of rapid development, China's auto industry has entered a period of strategic transformation. For a long period to come, China's auto industry will continue to maintain its rapid development momentum. The investment of multinational companies will continue to increase, and the international competition in the domestic market will continue to increase. The momentum is becoming more and more obvious and industry competition will further intensify. Faced with this situation, China's auto and auto parts brands must find their own position in the fierce market competition as soon as possible, and must have a clear strategy for independent innovation. Otherwise, they will be untenable in the fierce market competition. The danger of elimination.

How to build China's own brands of auto parts and components has become a hot topic, a hot issue, and a difficult issue. For this reason, the author made some discussion on this issue.

First, the basic status quo of China's auto and auto parts brands.

1. Since the reform and opening up, China's auto and auto parts brands have developed rapidly and a number of national brands have emerged. From the 1980s onwards, under the guiding ideology of market-for-technology, China's auto industry has emerged as one of China-foreign joint ventures that has mushroomed. Through strengthening cooperation with multinational corporations, foreign technology funds have been introduced to improve China’s automobile industry. Production, scale and quality enhance the competitiveness of the industry to meet the needs of the automotive market. It can be said that this strategy has achieved great success. Through joint ventures and cooperation, it has rapidly changed the backwardness of China's automobile industry, shortened the gap with the world's automobile industry, continuously expanded the scale of production, constantly improved the level of technology, and achieved the spare parts industry. The rapid development has nurtured a large number of automotive professionals, the level of enterprise management has been greatly improved, and advanced technical standards and business concepts have been introduced. Li Jingwen, academician of the Chinese Academy of Engineering, pointed out that the impact of multinational automotive capital and technology on the Chinese auto industry is very profound. This has led to the continuous development of the entire national brand and has brought closer distances and gaps with international cars and components. A large number of independent brands such as Brilliance, Chery, Geely, Hafei, and Xiali emerged.

When Huachen Group announced the news of the first Chinese car, it attracted widespread attention from all walks of life. This sleek and atmospheric model, together with the title of “China”, made people really feel the rise of national brands. Although her development was not smooth enough and encountered some difficulties, she eventually stood up and deserved the pride of the people.

Chery took less than 10 years to grow from a company with almost no advantages in capital, technology, and talents to a top-five car market in the domestic passenger car market with the largest export volume in the country. The pace of innovation has made the people happy and admired. Chery Automobile Co., Ltd., established in 1997, is a state-owned joint-stock company funded by five investment companies in Anhui Province and Wuhu City with a total investment of 1.7 billion yuan. Since Chery's first car situation was put on the market in March 2001, Fengyun, Qiyun, QQ, Oriental Sons, and Tiggo have been formed, with an annual production capacity of 350,000 complete vehicles and 400,000 engines. Research and development of ACTECO engines with independent intellectual property rights to create the first "Chinese core" of Chinese passenger car engines. Many mainstream media such as People’s Daily, China Central Television, and China’s Auto News have reported on it, and have become the vanguard and example of the auto industry’s independent innovation in China’s auto industry.

Geely is a private enterprise in China. Geely entered the siege of the automotive industry in the 1990s. In such a short period of time, Geely relied on its own strength to create a good car that would make ordinary people affordable. Starting from the first self-developed 479Q engine off the assembly line in 2002, Geely made independent innovations. In 2003, MR479Q series engines passed the national appraisal; in 2004, the electric power assisted power steering system was successfully developed; in 2005, the scientific research achievements of Geely became more like “blowouts”: in January, independent brands of free ships went offline. In February, the 376QE engine production line was completed. In May, China's first automatic transmission came out in Geely. In June, the JL378QE engine was put into production, signifying that Geely has fully developed the vehicle design, body, chassis, automotive accessories, engine, transmission, vehicle electronics and other development and design capabilities.

As far as auto parts enterprises are concerned, Hunan Jiangbin Machinery (Group) Co., Ltd. is a successful model in introducing, digesting, and absorbing advanced foreign technologies. The company is a specialized company that produces and operates middle and high-grade automobile engine pistons and oil pumps, and is also the single largest military piston production base in China. In the 1980s, the company introduced a full set of piston manufacturing and processing technology from abroad, through 20 years of digestion, absorption, and exploration, during which it made bold innovations and developed new JB-2 materials with independent intellectual property rights. Through continuous process optimization and innovation, China Created the first liquid squeeze casting piston, the first wear-resistant alloy ring piston, the first internal cooling oil piston, the first pendulum piston, the first electron beam welding piston, the first special shape Pin hole piston, the first surface spraying graphite piston, the first articulated piston, the first all-steel piston. At present, the company is moving toward becoming a first-class auto parts company and an international auto parts supplier.

2. The technology, quality, and service of independent brands are relatively backward, and their ability to participate in international competition is not strong. Although China’s auto and auto parts brands have achieved remarkable results, compared with the international auto giants, there are problems such as too small a company’s size, weak technology development capabilities, and decentralized operations, which are not competitive enough to break foreign performance. Technical barriers such as environmental protection. In addition, self-owned brand companies lack independent core technologies and are relatively isolated, and some key spare parts need to be imported. As a result, domestic auto exports currently face the challenges of a complex and ever-changing international trading environment, strict quality, technology, technology, and emission standards, and they face the low-end market, low-grade cars, low prices, low profits, and low quality. Not fundamentally changed. In addition, the marketing network and after-sales service system are not perfect, brand influence and core competitiveness are weak, cost control and internal management are still extensive, and constraints on risk prevention and international financial operations still exist. In these respects, China’s automobile production and exports still have a considerable gap compared with their international competitors, and their ability to participate in international competition is not strong.

3. The number of independent brands is small and the market share is small. In the more than 50 years of development of the Chinese automotive industry, there are currently more than 120 vehicle manufacturers, but few independent brands. It is understood that there are currently 355 trucks, buses and sedan brands in China, of which 69% are self-owned brands and 31% are foreign brands. However, among the 100 car brands, there are only 37 independent brands. At present, among domestic sales of cars, foreign brands produced by joint ventures account for about 90% of the market share.

Second, to build China's auto and auto parts countermeasures.

1. The government should start a series of policy support as soon as possible to provide a relaxed environment for building its own brands. The Korean auto industry that was born in 1962 has focused on independent research and development since its inception, and the Korean government has specifically promulgated the "Support Law for the Automotive Industry." In 1973, the "Long-Term Development Plan for the Automotive Industry" was formulated, requiring Korean companies to independently design and develop. After more than 20 years of development, South Korea has become one of the world's leading manufacturers. The Japanese government has adopted many protective policies for the automotive industry, guided enterprises to take the path of clustering, and strived to develop economical cars. Enterprises also insisted on independence, independent innovation, and established their own brands. The Korean-Japanese model has provided us with experience and inspiration for the development of national brands. The central government must start a series of policy support as soon as possible, including financial credit interest rates, export tax rebates, export guarantees and export insurance or more flexible concessions. Li Jingwen, an academician of the Chinese Academy of Engineering, pointed out in the development policies and measures for the automotive industry that the state should use a series of laws and regulations to guide and nurture and develop self-owned brand enterprises. It should be tilted on policies such as financing and taxes to support their research. . For those enterprises and projects that are not self-developed, they can cancel policy concessions and duplicate joint-venture enterprises and projects, or even restrict the policies. We can limit the long-term dependence on foreign companies and products.

It is gratifying that the 16th Plenary Session of the Party has brought China's capacity for independent innovation on the agenda, and the recently convened Science and Technology Conference has further clarified the need to create innovative countries, which have laid a solid foundation for the development and expansion of national brands. Foundation. According to media reports, many policies and measures in the “Eleventh Five-Year Plan” of the national automobile industry to be issued this year are very specific. For example: set up a special fund for independent development of automotive core technologies; provide tax relief policy support for enterprises that have made substantial progress in independent development capacity building; impose certain import taxes on equipment, prototypes, and prototypes required for technological development; Concessions; for example, in the government procurement reflects the support of the auto brands.

2. Self-owned brands of automobiles and parts and components must seize opportunities, take advantage of opportunities, and take the path of differentiated development. Under the global competition pattern of the auto industry, the self-owned brands must achieve catch-up and catch up, must rely on innovation, take a differentiated development path, and make themselves bigger and stronger in differentiated development. Judging from the changes in the pattern of the world automobile industry in the past decades, the latecomers must surpass the pioneers and rely on their own differentiated development. China is one of the most populous and densely populated countries in the world. It has huge market potential and the lowest labor force. China's manufacturing labor costs are less than 1/30 of the developed countries, less than one-fifth that of Brazil, and lower than the Philippines, Thailand, and Malaysia.

According to the forecast of the US Department of Commerce, by 2010, China's auto exports (mainly parts and components) will reach 80-100 billion U.S. dollars. It is difficult for the American auto industry to compete with China's cheap labor and automotive products. The import of Chinese cars may cause a large number of American auto industry workers to lose their jobs. The British "Financial Times" in an article called "China's auto will reshape the global auto industry? > The commentary states that "Chinese manufacturers have successfully used low-cost models in the consumer electronics sector. If they can replicate this model, they will promote the transfer of a large part of the world's automotive industry to China." Many car manufacturers in the world The main dangers and threats faced by China are that low-priced cars produced by China will occupy their inherent market and they are all calling out for the “wolf” in China. Foreigners all know that our country’s independent brands take a differentiated development path and have strong competitiveness. China’s own branded autos and parts and components companies must seize opportunities and take advantage of the opportunities to make our country’s automobiles move from big countries to car power countries.

3, enhance the ability of independent innovation, solve a series of quality, technology, and service issues. The "CPC Central Committee Concerning the Formulation of the Eleventh Five-Year Plan for Formulating the National Economy and Social Development" adopted at the Fifth Plenary Session of the 16th CPC Central Committee pointed out: "We must deeply implement the strategy of rejuvenating the country through science and education and the strategy of strengthening the nation through talents, and make science and education more capable of independent innovation as science. The strategic basis for technological development and the adjustment of the industrial structure and transformation of the central link of growth methods, and vigorously improve the original innovation capabilities, integrated innovation capabilities and the ability to introduce and digest and re-innovate.” Recently, at the National Science and Technology Conference, Comrade Hu Jintao delivered an important speech. In the report, the general secretary pointed out sharply that: "At present, China's overall level of science and technology still has a large gap compared with the world's advanced level, and there are still many areas that are incompatible with the requirements of China's economic and social development. The main ones are: Key. The rate of technological self-sufficiency is low, and the capacity for independent innovation is not strong, especially the core competitiveness of enterprises is not strong; the level of science and technology in agriculture and rural economy is still relatively low, the proportion of high-tech industries in the entire economy is not high, and some of the industrial technologies In the key areas, there is a large dependence on foreign technology, and many high-tech Scientific content and high value-added products mainly depend on imports; scientific research strength is not strong; outstanding and top-notch talents are scarce; lack of scientific and technological inputs, and institutional mechanisms still have many drawbacks.” For this reason, the Party Central Committee and the State Council have made innovation-oriented countries. decision making. The key to building an innovative country is to strengthen the capacity for independent innovation as a strategic basis for the development of science and technology, to take the path of independent innovation with Chinese characteristics, and to promote the leap-forward development of science and technology; that is, to strengthen the capability of independent innovation as an adjustment of the industrial structure and change the mode of growth. The central part of the project is to build a resource-conserving, environment-friendly society and promote the rapid development of the national economy. It is to use the capability of strengthening independent innovation as a national strategy to permeate every aspect of modernization, inspire the national spirit of innovation, and cultivate high-level innovative talents. We will form an institutional mechanism conducive to independent innovation, vigorously promote theoretical innovation, institutional innovation, and technological innovation to continuously consolidate and develop the great cause of socialism with Chinese characteristics. As a national brand automobile and parts and components enterprises, they should actively respond to the central call, make use of the preferential policies provided by the state, carry out “marking” management, aim at the frontier of the industry, lack what they need, and work harder and harder, work harder and harder. Through 5-10 years of arduous efforts to solve a series of technical, quality, service and other issues, China's national brands have emerged after the spring rain, so that the core technologies of automobiles and components are truly in the hands of the Chinese people.

View related topics: independent brands, where to go?


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