Autonomous car companies fall into joint ventures and foreign capital encirclement
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“The current Chinese-owned self-owned enterprises have been trapped in joint ventures and foreign companies.†In the autonomy forum for the 60th anniversary of China’s auto industry development, Li Gang’s words, the chairman of the former China National Automobile Industry Corporation, made the participants shake their hearts.
At the same time, without exception, the participating experts talked about the huge crisis facing the self-owned brands and have successively issued “prescriptionsâ€.
Li Gang said that the current wide range of automobile joint ventures in China, the large scale, and the duration of joint ventures have created an unprecedented record in the world's automobile history. Germany, Japan, the United States, South Korea, France, Italy, India, Sweden and other countries have formed "coalitions". They brought 170 world-renowned brands to take away most of the profits from the Chinese auto market. "2011 Social Science In the Institute's competitiveness investigation report, 95% of the foreign profits of the joint ventures were made up, and only 5% of the Chinese side. The foreign brands put a Chinese label through joint ventures. We disguisedly paid a production license fee or were taken away as part of the profits."
Take the 2013 world's top 500 companies as an example. SAIC ranked 103, with a turnover of 76.2 billion U.S. dollars and a profit of 3.2 billion U.S. dollars. Korea Hyundai Group ranked 104 with a turnover of 74.9 billion U.S. dollars and a profit of 7.6 billion U.S. dollars. SAIC's 1.3 times. According to Li Gang, according to the latest data, the joint venture's production capacity will expand to 17 million units in 2015. This figure has already forced Chinese companies to the corner.
Xu Changming, director of the State Information Development Department, believes that there are currently three long-term factors that restrict the development of self-owned brands. First, the relative cost advantage of self-owned brand cars is declining, while foreign brands are experiencing significant reductions in cost after experiencing a platformization strategy; second, factor prices are rising. Such as rising raw material prices, land, utilities, and labor costs; Third, the increase in the cost of comprehensive automobile use, including restrictions on purchase, licensing, rising oil prices, and rising parking fees are all detrimental to low-priced vehicles.
In the face of severe real problems, where are the outlets for self-owned brands? Experts at the meeting believed that the current low number of Chinese autos with thousands of people and the unbalanced economic development in various regions have brought opportunities for the development of independent brands, and the government has begun to consciously support China’s auto innovation enterprises.
Xu Changming said that there is still a period of rapid growth in total sales in the Chinese market for more than a decade, which provides a very good market opportunity for the development of independent brands. Li Gang said that the state promotes the purchase of buses for independent brands to be reasonable and legal, and it should also introduce preferential policies such as financial taxation to support the growth of various independent innovation companies.
From the perspective of the enterprise itself, the independent brands also need to have three good levels, namely, performance, quality, price, and brand. Li Gang believes that vehicles developed by self-owned brands must be able to approach or exceed the products of current joint ventures, start selling at less than 1/3 of joint-venture vehicles, have a long product life, and have a low failure rate, setting a good reputation for the brand.