Capitalizing on the annual sales volume of urban China’s auto market, 40 million vehicles

At the 2013 Boao Forum for Asia Automobile Sub-Forum, Beijing Automotive Group Chairman Xu Heyi predicted that the peak sales of Chinese cars will reach 35 million to 40 million vehicles. The reason is that China will enter the peak of urbanization in the next decade. Changan Automobile Zhang Baolin, the president, gave a more conservative forecast under the same reasons and believed that 30-35 million vehicles were more likely to be available.

Urbanization bonus car sales peaked at 40 million vehicles

Urbanization is the theme of China's urban development in the next decade, and it also brings unprecedented opportunities for the development of China's automobile industry. In predicting the future scale of the Chinese auto market, Beijing Automotive Group Chairman Xu Heyi pointed out that under the background of the rapid development of urbanization in China, the scale of the Chinese auto market can be crowned to annual sales of 35-40 million vehicles. This forecast was supported by Li Feng, Beijing's deputy general manager and Yao Yiming, deputy general manager of Guangqi Honda Automobile.

Hu Maoyuan, chairman of SAIC, believes that relying on a huge demographic dividend, it can achieve sales volume of 30-35 million vehicles in the future. Zhang Baolin, president of Chang'an Automobile, and Yin Tongyue, a Chery automobile, gave similarly conservative forecasts.

The reason Zhang Baolin gave the prediction is similar to Xu Heyi. Zhang Baolin thinks: “Urbanization and the company’s own efforts to make Chinese cars reach this level (3000-35 million vehicles).”

According to data released by the China Association of Automobile Manufacturers on January 11, 2012, China's automobile production and sales both exceeded 19 million, and once again exceeded the record, the growth rate surpassed 4% and won the first place in the world. Contrary to this, in 2012, the core group's own-brand “group army” including FAW, SAIC, Dongfeng, Guangzhou Automobile, Beijing Automotive, Chery and other state-owned large groups had a market share of only 7.8% in China.

When urbanization creates a favorable environment for the development of the Chinese automotive market, can independent brands get more cake in this huge market? Yin Tongyue, Chairman of Chery Automobile, was confident in facing the problem and said that “the goal of the next 30 years is to establish a Chinese brand and build our own brand.” And asked “Do you not know how much China’s joint venture will exist after 30 years? ”

It may be difficult to achieve this goal, but in order to gain more market share in the domestic and international market share, the participating auto makers will inevitably express the opposite strategy of “opening the market and integrating technology” in a joint venture that is different from the traditional ones. : Market integration and technology opening.

This is full of reflection. Because “in the past 30 years, China's auto industry has used open chips, foreign car companies have used fusion as weapons to grow,” while China has the world’s largest car market and most promising market prospects, but it has not been able to develop a match for them. The ultimate reason for independent brands is that, in the past three decades, the joint venture strategy with “market-for-technology” as the core has only made a difference in the “openness of the market”, but it has been poorly expressed in the “integration of technologies”.

In this context, the discussion on the "opening and integration of the automotive industry" at the Boao Forum for Asia Automotive Forum is of particular significance. Both Hu Jiayuan, the chairman of the joint venture's originator, and Yin Tongyue, the independent chairman of Chery Automobile, are communicating another idea: The future of the Chinese auto industry lies in the “market integration” and “openness of technology”.

The open market is not as good as the integration of domestic and foreign markets

Market integration, first of all, is to adapt to the globalization strategy and achieve the integration of domestic and foreign markets. If BAIC's internationalization strategy is still in its infancy, it has already achieved the export of 186,000 Chery cars in 2012, and it has already taken the lead in opening up the international market.

The premise of market integration is to establish a good cooperative relationship. Yin Tongyue said that Chery’s “going out, walking in and going up” is fundamental to achieving localization. The best way to achieve localization is to recruit local talents through partners, and then do a good job of “secondary design for localized market research, localized production, and localization.” Chery's success has a good reference for domestic independent brands going overseas.

Market integration cannot be separated from long-term development. “Made in China” is still struggling in the “low-price quality” in the international market. Establishing a good brand and corporate reputation requires the company to invest in service and quality in the early stage. As Changan Automobile Zhang Baolin has introduced, internationalization is not just about selling one or two vehicles. It is through long-term development by focusing on key markets, improving quality and service, and building brands and reputations based on quality and service.

Technology open instead of closed doors

The original intention of the market for technology was good. In his speech, Hu Maoyuan pointed out that SAIC Motor has developed into a Fortune 500 company on the basis of joint ventures and cooperation; even a Changan automobile with military background acknowledges that the joint venture in the early 1990s is now Chang'an’s Success lays a solid foundation.

However, Zhang Baolin, president of Changan Automobile, also stressed that to solve the problem of the declining market share of self-owned brands, it is fundamental to rely on independent research and development rather than a joint venture. In this context, Zhang Baolin further proposed: "Technological innovation is not closed-door construction, but open-ended, through the five countries and nine places to absorb resources," to achieve an open, low-cost, high-efficiency R & D model.

In technology open research and development, Chery has been dedicated to independent research and development and has turned to international technical cooperation after small achievements. Yin Tongyue, chairman of Chery Automobile, believes that “To develop products well, we must concentrate resources, introduce international development systems, international development standards, and international development processes and concepts.” At this year's Geneva Motor Show, the Chery TX concept The car won the only "2012 Concept Car Award" at the auto show. This is a criticism of the industry's criticism that Chery only emphasizes technology, comfort, and design, and is also a testimony to Chery's international development.

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