Automobile exports are facing challenges Low-cost competition is difficult to save their own brands

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On October 11, the 2nd Global Automobile Forum was opened in Chengdu. Mitsubishi Motors President Yoshiko Yoshikazu, Toyota Motors Senior Advisor Watanabe Watanabe, Dongfeng Motors Chairman Xu Ping, Changan Automobile Chairman Xu Liuping, Beiqi Group Chairman Xu Heyi, The leader of GAC Group Chairman Zhang Fangyou and many other automotive enterprise groups at home and abroad delivered unique insights on the subject of “a new panoramic picture of the global auto industry: new demands, new expectations, new markets” and shared Strategies for dealing with changes in technology and policy environment, development of China's auto industry, and other aspects.

Wang Xia, chairman of the China Council for the Promotion of International Trade, Automobile Industry Committee, believes that in 2011 we are at an important historical juncture for inheriting the past and forging ahead. The Chinese auto market is becoming an important cornerstone for local companies and global multinational corporations to formulate development strategies.

In 2011, the Chinese auto market slowed down its pace of growth and entered the adjustment period. It was the self-owned brand that was the first to suffer. In order to seek sales assurance, overseas markets may become another important battlefield for independent brands.

However, the vicious competition of independent brands in overseas markets has intensified, not only seriously affecting the brand image of Chinese cars, but also making it difficult for companies to truly emerge from the predicament. In response, Wang Xia, president of the China Council for the Promotion of International Trade (CCPIT) Automobile Industry Committee, reminded car companies at the Global Automotive Forum Media Summit that car exports could not repeat the mistake of motorcycle exports. The relevant departments began to plan the long-term strategy for China’s auto exports. Lu Luxun, deputy director of the Department of Mechanical and Electrical Industry of the Ministry of Commerce, said that next year or through policy adjustments to enhance the standards of independent brand export standards, strengthen the independent brands in overseas markets. Competitiveness.

Self-owned brand overseas gold rush In 2011, with the slowdown in the growth of the domestic auto market, many independent brands have found their way out to enter the overseas enterprise market.

Lu Jianhui, deputy general manager of Chery Automobile, said at the 2011 Global Automotive Forum that Chery’s total vehicle exports will reach 180,000 units in 2011; in August and September, more than 20,000 vehicles will be exported every month. He stated that Chery is striving to enter the European market at the end of the 12th Five-Year Plan period. In the next 7 to 8 years, Chery will strive to export 1 million vehicles annually.

In addition, many self-owned brand companies such as Lifan and Great Wall have also strengthened their share of the company's business strategy. Yin Mingshan, chairman of Lifan Group, analyzed this reason, saying that “joint ventures are making people nowhere to go. Therefore, overseas markets will become the 'new continent' for independent brands”.

Yin Mingshan told reporters that in 2011, the overseas market accounted for 55% of Lifan’s total sales, and the domestic market’s sales ratio was only 45%. This phenomenon of export and domestic sales upside down has broken down the enormous pressure brought about by market adjustment in the short term.

In a globally competitive environment, China's auto production and sales exceeded 18 million units in 2010, becoming the world's No. 1 for the second consecutive year, and China’s auto exports have also been increasing. From 2003 to 2008, the increase was as high as 71.6%. Affected by the financial crisis in 2009, the export volume plummeted by 45.7%. Although exports increased again in 2010, China’s auto exports have not been able to dominate the export trade, which is not unrelated to the short-sighted behavior of auto exports.

“In overseas markets, Chinese brands compete internally and do not compete with foreign brands,” Dr. Ludson said at the Global Automotive Forum. He believes that at present, the image of China's auto exports with low prices and low levels has not been substantially changed in the international market.

Lu Jianhui believes that the current export problem is that it has just gained a firm foothold in a market and a large number of domestic counterparts immediately followed suit and launched a price war. In the short term, this method can guarantee the operating profit of the company, but it cannot be sustained without changing the single export method of independent brands.

In order to improve the competitiveness of independent brands in overseas markets, Dr Lun said that they will introduce policies that will firstly increase the threshold of export volume and reduce the operational investment of mobile companies. Second, on the basis of existing qualifications, strengthen the construction of overseas marketing networks. Standards and requirements; Third, optimize the export body by accelerating the merger and reorganization of auto companies. Zhang Xiaokai, executive vice president of the China Federation of Machinery Industry, said in an interview with the "Daily Economic News" that "It is very difficult to do a good job of exporting cars, but this road is a must."

Low-cost strategies are difficult to sustain to face the complex international competition environment. At present, the rapid growth of China's auto industry depends mainly on labor cost advantages. However, due to the increase in exchange rates and labor costs, the low-cost advantages of Chinese auto companies are gradually losing.

According to statistics, in 2010, China exported a total of 580,000 vehicles, accounting for about 3% of the total domestic output. In the same period, German auto exports accounted for 75% of the total output, Japan was 65%, South Korea was 50%, and even Brazil accounted for more than 20%.

The number of Chinese cars exported is inconsistent with the status of the largest car-producing country. However, “going out” is not just selling cars. Changing the extensive export method is an urgent issue that needs to be resolved. According to Lu Lun, the problem of homogenization of most automotive products exported from China is serious. This has led to competition between companies mainly due to price, size, and profitability. The 580,000 vehicles exported last year covered 21 markets worldwide. At the same time, these markets are basically concentrated in underdeveloped regions such as South America. Too much and too scattered have become the primary factors restricting the development of overseas markets for Chinese auto companies.

Research shows that the comprehensive index of international competitiveness of Chinese auto brands is only 41% in the United States, 42% in Japan, 47% in Germany, and 61% in South Korea.

"To cultivate our own branded products' export advantage through our own huge market advantage, we must absolutely not take the road of low cost, low price, and low quality." Zhang Xiaozheng told the "Daily Economic News". Constraints on the export of self-owned brands are also embodied in a single form. At present, China's auto exports are still in the stage of logistics trade, and they must change to the direction of industrial internationalization as soon as possible. This includes the expansion of overseas markets through product export, establishment of stores and factories, and multinational ordering, as well as the construction of service networks and the construction of auto finance networks.

Wang Xia pointed out that auto companies should adopt a gradual way to go out. First of all, auto companies need to be bigger and stronger in the domestic market. Then they should quickly formulate the division of labor and choices for the target market, and gradually move toward the developed markets in Europe and America. Stabilizing the domestic market is an important guarantee for going global.

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