In recent years, the "national-level automobile and parts export base" Liuzhou City automobile and parts exports have shown rapid development momentum. In 2006, the export volume was 105 million U.S. dollars, and it is estimated that the export volume in 2007 will reach 180 million U.S. dollars. Among export products, "Wuling" series vehicles, "Dongfeng", "Dragon", "Balong" heavy trucks, "Popular" multi-function passenger cars, "Gaomai" series steel rings, "Liugong Brand" series Engineering machinery, CKD export assembly low-speed trucks, micro-car engines and other independent brand products have been exported to more than 20 countries and regions in the Middle East, Africa, North and South America, and Southeast Asia.
The Chinese auto industry, which is awakened from the joint venture dream, is gradually taking its destiny into its own hands. China's auto companies, which are no longer satisfied with competing for the domestic market, are rushing to the international market. There are more and more companies that knock on the gates of overseas markets, but the big sticks behind the gates have also waved more rapidly: from embarrassing crash tests to closing the doors of cross-border joint ventures. What drives these Chinese cars bravely to overseas markets? What are the ups and downs they will face? Although courageous, fearless, but as far as possible to avoid the ups and downs, or for the best policy.
At the “2007 China International Automobile Industry Development International Forum†held during the Guangzhou Auto Show, the most talked about by the automobile elites was the internationalization of Chinese cars, the most important one being the export of automobiles. According to information from the customs, Jianghuai Automobile's export volume in 2007 was nearly 20,000, nearly doubled. Also impressive are the Great Wall Motors and Chery Automobiles. How can China's auto exports be painful and happy? Experts from SAIC, GAC, the Ministry of Commerce, and the Automobile Industry Association have all come up with extraordinary ideas.
The Impulsive Export Impulse
After seeing the high returns of foreign auto giants in China, Chinese auto companies have also bred overseas enthusiasm for building factories.
“From the perspective of return on investment, the level of parts and components companies in China is far higher than that of the host country. The top five companies with the best profitability in the sedan industry are Sino-foreign joint ventures.†Deputy Director-General, Department of Mechanical and Electrical Industry, Ministry of Commerce, China Zhai pointed out that “The return on investment of U.S. General Motors in China exceeds its imagination. China manufactures a car equivalent to five or six cars that they manufacture in the United States. BMW’s sales in 2006 reached 50,000, which is equivalent to its sales in Brazil. The company’s corporate return rate is also very high, which is the highest in the country’s car companies.â€
High returns have led to high-density investment. The investment fields of multinational auto giants in China have expanded from the fields of production, sales, logistics, finance, and raw material production, and have even begun to extend to R&D.
According to reports, the high returns of multinational auto giants stem from two points: China's low manufacturing cost and high profit transfer income. The profit transfer comes from two aspects: one is to purchase production equipment and core components from its home country; the other is a high technology transfer fee.
“When we assemble a car abroad, we send the technical staff of Chery to guide us. We can collect the technology transfer fee and the brand use fee. In foreign countries, the use fee of the Chery brand is US$80 per vehicle.†When Chery Automobile took overseas assembly In the first step, Yin Tongyao, chairman of Chery Automobile, truly appreciated the richness of overseas profits.
Do Chinese cars have export competitiveness?
When several embarrassing collision results with Chinese self-owned cars appeared, overseas media unanimously declared that Chinese cars are not safe. Is China's auto industry really lacking competitiveness?
Zhang Jian believes that the high growth of China's auto exports shows that we are competitive.
Statistics show that in recent years, China’s automobile and trade have continued to grow rapidly. Among them, vehicle exports have maintained an increase of 95.6% over the past five years. In 2006, the total vehicle export was 3.12 billion U.S. dollars.
"China's exports are mostly medium and low-grade cars. There are more commercial vehicles exported, fewer passenger cars are exported, more are exported to developing countries, and fewer are exported to developed countries." Director of Research Services, Xinhuaxin Group (Shanghai) Automotive Market Sun Muzi pointed out that "in 2006, commercial vehicles exported 224,000 vehicles, which accounted for 69% of the total export volume. 92,000 cars were exported."
Before the “Collision Door†incident, BAM Yumin, chairman of Brilliance Automotive, knew that it was difficult to enter overseas markets. He told the Shanghai Securities News, “In fact, Germany does not have to worry about the small cars we export to compete with their local cars. How many cars they export to China in a year and how much we export to Europe.â€
Zhang Xiaoyu, vice president of the China Machinery Industry Federation, pointed out directly that the direct opponent of China’s exports is the used car market. Since four times in 2003 to lead China’s self-owned brand cars to go abroad, Zhang Xiaozhen had a profound experience. “This year, we went to Russia. Russians say that China’s cars are expensive and I began to wonder if they explained it for a long time. Their used car is expensive."
However, Chinese cars that compete with overseas used cars still face big sticks.
“Frustration is not necessarily the internal cause of Chinese autos. After all, Chinese companies have become increasingly capable of developing new products; after the closed-door era, internationally advanced technology and vehicle design are all collaborating with Chinese companies.†European Automotive Industry According to Dai Lin, chief representative of the association in China, “These companies may underestimate the importance of non-mandatory standards, consumer attitudes, regulations and the role of trade unions when they export.â€
Dai Lin even said with optimism that some expect that China’s auto exports will account for 5% of the European market in 10 years, which is 200,000 vehicles.
Zhang Hao is optimistic about the space for Chinese auto exports. In 2006, the global trade volume of goods was 11.76 trillion U.S. dollars, and automotive products (including vehicles and parts and components) accounted for 10% (approximately 1.2 trillion yuan); China's auto exports accounted for only 5% of the world's total automobile trade, and Less than 2% of the domestic industry-wide sales, accounting for 7.3% of China's auto industry output value. This data is ranked lower in China's machinery and electronics industry.
According to the plan, during the “Eleventh Five-Year Plan†period, the annual growth rate of China’s auto and auto parts exports will exceed 35%. In 2010, it will exceed US$50 billion and in 2020 it will account for 10% of the world’s total auto trade.
The Top 10 Markets for the Export Value of China's Whole Vehicles in the First 9 Months of 2007
Regional sales (units) Amount (ten thousand US dollars) Sales volume growth (%) Year-on-year increase (%)
Russian Federation 65842 82908 198.4 324.2
Iran 18348 36481 124.7 84.8
Kazakhstan 12356 35319 221.1 282.7
Algeria 26199 26329 54.1 96
Ukraine 31064 21646 359.7 285.5
Vietnam 21106 20746 136.5 247.8
South Africa 24960 20275 938.7 439.6
Syria 41328 17773 11.5 28.2
United Kingdom 14082 15669 - -
Saudi Arabia 4648 14303 264.8 253.4
Various experts and strategies
How can the Chinese auto industry really achieve these grand goals? The elites of the automotive industry are doing their best on the forum.
Wang Fengying, general manager of Great Wall Motors, which mainly focuses on overseas exports, told reporters, “We have a very deep feeling that exporting cars is like having not passed classes before they have to undergo rigorous examinations. Great Wall Motor also has strategic thinking on this.â€
The pragmatic Great Wall Motor finally decided to do it one step at a time: from the very beginning of product design and development, it took globalization into consideration to meet more international regulations and requirements. In addition, when it operates in a global market, it is to grasp both the construction of a sales service network for overseas markets and the establishment of a brand for Chinese automobiles in overseas markets.
Wang Da, who has spent 25 years overseas and is currently Deputy Chairman of SAIC Motor Corporation Limited and Chairman of the China-America Automotive Exchange Association (Gallery Forum), emphasized three P: products, strategies, and people. “The road to internationalization is going to go, but it must be steady and steady, not impetuous, and we must be prepared. Every company must design its own internationalization path. Which high-end, mid-end, low-end market? Take the high-end can, whether the product is ready Is it good to export or build a factory? Is it going to build a plant or a merger?â€
Wang Dazhan pointed out that the experience of international auto giants can be used as a reference. Like GM’s use of acquisitions of overseas assets, it quickly achieved internationalization and overseas exports; Toyota Motor has individually set up factories overseas.
Zhang Hao proposed another solution: In the future, on the export of automobiles, it will promote the mutual certification of automotive products with major exporting countries; and support independent brand enterprises to invest and set up factories overseas.
Chen Welfare, Director of the Division of Intellectual Property Law of the Department of Treaty and Law of the Ministry of Commerce, saw another risk: intellectual property disputes. “The current trend is strong law protection. In recent years, developed countries have increased intellectual property protection, intellectual property rights have become an important issue, in particular, counterfeit auto parts threaten the safety of consumers, etc. These have become the focus of bilateral negotiations. problem."
However, the patent report issued by the World Intellectual Property Office in 2007 was thought-provoking: residents from three countries, the United States, Germany, and Japan, applied for patents in other countries and accounted for 57% of the world's patents. The number of Chinese patent applications for auto parts in the world is less than 2%.
To this end, Chen Welfare suggested that Chinese auto companies pay attention to the construction of intellectual property rights, and safeguard and rationalize the use of legitimate rights and interests. In the event of intellectual property disputes, we must fight to the end when there is confidence and evidence.
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