Trucks: The Foundation and Pilot of China's Independent Brands

The country’s new “Automobile Industry Development Policy” proposes that “incentives for auto manufacturers to improve their research and development capabilities and technological innovation capabilities, actively develop products with independent intellectual property rights, and implement brand management strategies. In 2010, automobile manufacturers will form a number of well-known automobiles, "Motorcycle and parts product brands", "Tracking and researching international cutting-edge technologies, actively developing international cooperation, and developing advanced and applicable technologies with independent intellectual property rights. The products of imported technology must be internationally competitive and meet the mandatory requirements of international automotive technical specifications." The need for development; the self-developed products strive to be in line with the international technical level and participate in international competition. The state supports the R&D activities in line with the technical policies in the tax policy." This shows that national governments, industries, and consumers are all calling for and looking forward to independent brand automotive products.

With regard to the current status of China's economic development and the auto industry, the author believes that the establishment of an internationally-recognized independent brand for trucks is the basis and precursor for the development of China's auto brands.

Technical accumulation and market foundation of trucks

In the two or three years after our country’s birth, the development of Chinese trucks has grown by leaps and bounds. Despite the fact that trucks suffered from atypical pneumonia and stagnation of car consumer credit last year, they also maintained a high growth rate in synchronization with the entire automobile industry. In 2003, China produced and sold 4.4 million vehicles, an increase of 34.21% year-on-year, four times the domestic GDP growth rate. At the same time as the rapid growth of passenger cars, the number of trucks increased by 10.35% and passenger cars increased by 15.15%.

The basis for the development of China's auto industry is that trucks and trucks have created countless glories in China's 50-year history of automobiles. The trucks are not only the longest main business of the value chain of FAW and Dongfeng, but also the components and related industries that are driven at the same time have played an active role in the development of the national economy and the local economy. Over the past 50 years, China’s truck industry has not only accumulated rich technology, but also has a long-established network of marketing services. China’s fleet of more than 700,000 trucks and its well-known domestic “Liberation” and “Dongfeng” brands It is an extremely important condition for the development of independent brands of internationally renowned automobiles.

Developing External Environment of Well-known Brands of Trucks

From the external environment of China's auto companies, the state attaches great importance to and supports the development of independent brands.

At the Third Plenary Session of the 16th Central Committee of the 16th CPC Central Committee in October 2003, we discussed a number of major issues related to the improvement of the socialist market economic system, and encouraged domestic enterprises to make full use of the favorable opportunities for opening wider to the outside world, and to enhance the ability to open up markets, technological innovations, and foster independent brands. It should be said that today's independent automobile brands in China have ample manifestation and advantages in terms of Dongfeng and liberation of trucks.

In recent years, the central government has continuously increased its investment in infrastructure and stimulated the domestic market demand for trucks. China’s GDP growth has reached more than 7% for many years in a row. The total economic output has ranked sixth in the world, and the total trade volume ranks fourth in the world, attracting foreign exchange ranking third in the world; the added value of China’s manufacturing industry is second only to the United States, Japan, and Germany. Has ranked fourth in the world. However, another reality that we must face is: In 2003, among the 100 most valuable brand rankings in the world, there was only one Haier company in China, and none of the domestic automobile brands were listed among them. This is not commensurate with the scale and status of China's auto industry.

It is not because the traditional advantage of the Chinese national automobile industry is to carry trucks, but to reflect the actual level of the development of Chinese trucks and that of the international automobile industry. The realities of the comparative advantages proposed by China and at the same time aiming at China as a developing agricultural country are currently being put forward in the social reality from the transition from an agricultural country to an industrial country and from an underdeveloped agricultural society to a developed industrial society. This huge social progress and social changes will inevitably bring about the market demand for trucks and special vehicles, including passenger cars. This is a solid foundation for us to make our own trucks stronger and bigger, and it is also an advantage of the Chinese national automobile industry to participate in international competition.

From the point of view of highway construction, China has completed the development course of highway construction in developed countries for three or four decades in more than 10 years. The total mileage of highways ranks fourth in the world, and the total mileage of highways ranks second in the world. The country proposed a total national highway mileage of 2.1 million to 2.3 million kilometers in 2010. The national highway of “Five vertical and seven horizontal” will be completed. The total mileage of the highway will reach 50,000 kilometers, connecting 90% of the cities with more than 200,000. population. In 2020, the total length of highways in the country will reach 2.6 million to 3 million kilometers; the total length of highways will reach 70,000 kilometers and a national highway network will basically be formed. The rapid development of road transport has provided the automotive industry with a broad development space and environment for the development of a strong product truck with a well-known independent brand.

The establishment of a well-known independent brand led by trucks

Now, China's truck industry has not only rich technology accumulation and marketing service network foundation, but also a good external environment. Therefore, the author believes that it is time to create a well-known independent brand led by trucks.

Medium-duty trucks are China's traditional automotive products. "Dongfeng" and "liberation" have a high reputation in China. They should further increase their technological content and make them an internationally renowned independent brand as soon as possible. On this basis, it will quickly extend to both ends and accelerate the creation of self-owned brands for light and heavy trucks.

The experience of the development of the international auto industry shows that the healthy development of the auto industry cannot be separated from the strong support of the country. In the development of the automobile industry in China, it is also inseparable from the strong support of various countries. First of all, the state should focus on manpower, material resources, and financial resources to carry out collective research like the implementation of manned space projects in recent years, with a focus on solving a number of general-purpose, basic platforms and key components, and solve some technical problems and cruxes in vehicle manufacturing. The problem lays a solid technical foundation for the production of auto brands. Secondly, the state should give preferential treatment and subsidy to those manufacturers that develop autonomous brands in terms of taxation, credit, funds, etc., and give appropriate tilts in policy formulation to improve the company's ability in technological innovation and ability to adapt to the market. Once again, one of the key issues for China's auto industry to develop its own brand is the lack of a large number of people who understand technology, management, and market operations. Talent has become a deterrent to the in-depth development of China's auto industry. Therefore, the state should do more to train specialized personnel. jobs.
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