Private enterprises make a car out of the way where the experts suggest that based on the supporting industry
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The manufacture of automobiles is one of the most popular terms for private motorcycle enterprises in Chongqing recently. From Lifan, Loncin to Zongshen, the “unanimous action†of private private enterprises in Chongqing caused quite a stir in the country. In fact, before this, it was already a dream for many Chinese private enterprises to build a car. Starting from Geely, BYD, Midea, Oaks and many other companies have embarked on the road to building a car with the cashbox.
However, looking at the sudden rise of the private enterprise, there is no product research and development advantages, and no supporting production capacity. With the participation of foreign automakers, price competition in the Chinese auto market has become increasingly intense. Constantly lower profit margins For companies that are just getting involved in car manufacturing, good times are clearly over.
Where should private companies make cars? This has once again become a topic of concern.
Chen Huai, a well-known Chinese economist and a researcher at the Development Research Center of the State Council, predicts that the number of motor vehicles in China will reach 100 million in the next decade, and the Chinese auto market will continue to rise. According to this forecast, the boom in automakers will continue for at least ten years.
Compared with the growing high demand, China's current automotive industry still lags behind. The data shows that of the more than 120 vehicle production plants in China, nearly 100 enterprises have annual production of less than 10,000 vehicles. This situation obviously does not meet the requirements of industry development.
Wu Jianong, deputy mayor of Chongqing, who led the team to the Detroit Auto World Expo recently, said that the gap between China's auto industry and the world's top level is still far. The world-famous automobile production enterprises are not just individual companies but the center of the industrial chain. There are tens of thousands of supporting suppliers, suppliers, sellers, and service providers around the world's leading parts and components manufacturing and development companies. The huge industrial chain thus formed has radiated all over the world. In order for Chinese auto companies to develop, they must make breakthroughs in the industrial chain and supporting industries.
According to experts, the current market competition faced by the Chinese auto industry is more intense than expected. This competition is not reflected in the production of complete vehicles, but in the supporting production capacity of the entire vehicle. If automobile manufacturers still rely on vehicle production to compete with each other, they will only lose a few losses and eventually lead to the withdrawal of a large number of small enterprises. Some enterprises should change their business ideas as soon as possible and invest in supporting production and logistics.
As of the end of last year, Chongqing had a total of 17 vehicle production enterprises. For a national average of more than 100 vehicles, there were more than 10 vehicles manufactured in Chongqing. However, the production of parts and components in Chongqing is quite backward. Most of the parts and components enterprises are specialized, have low level of serialization, and have weak development capabilities, and they cannot play a supporting role for the entire vehicle company. So far, no enterprise has been able to produce high-end technology products such as ABS, airbags, and electric power steering. Local enterprises that can enter multinational corporations are minimal.
Without a mature automobile accessory industry, there is no real mature automobile industry. Experts said that, subject to price shocks and market tests, most companies should consider turning to supporting production as soon as possible. The already established automakers should consider the improvement of their own industrial chain and the protection of after-sales services.