"Made in China 2025" boosts confidence

This year, China’s auto market has seen a rare “double drop” situation, which is: it has fallen from the same period of last year, and the current month has fallen from the previous month. This has led to widespread concern from inside and outside the industry. It has even become a source of worries and even a bad word. sound.

So what happened to the Chinese auto market? What are the problems with the development of the automotive industry? China Economic Net Automotive based on interviews with experts and scholars inside and outside the industry, and strive to do a comprehensive, in-depth and thorough analysis, give the industry and companies a true, healthy and useful reference, and more hope to arouse people's attention and participation, promote and promote the entire The sound development of the industry.

Today is the third article in this series of reports. China Economic Net reporters specially interviewed experts from inside and outside famous industries such as Zhao Yan and Zhao Ying, from the scale and concentration of the auto industry, and the future “light assets”. The concept of "multiple integration" was proposed. From the perspective of large enterprise groups, the concentration of the automotive industry in China is constantly approaching the international level. However, from the standpoint of independent brands, there is still a gap between us and the foreign automobile market. Zhao Yan stated that it is possible to adopt a “diversity-integrated” organizational form and establish an organization that surpasses the sovereignty of all enterprises, thereby forming a corporate group. This move will greatly benefit the promotion of industry concentration, the promotion of sharing of results among enterprises, and the reduction of costs.

“Made in China 2025” shows a strong national will. With the continuous improvement of China’s overall strength, under the strong mobilization capacity of the government, the automobile industry will surely develop greatly, and the confidence of self-owned brands will surely be greater. Boost.

The automotive industry has always been a representative and iconic industry for economies of scale. Reviewing the entire automotive industry's history of more than 100 years, large-scale production is undoubtedly a landmark innovation that promotes the radical development of the automotive industry. More importantly, the large-scale development has not only improved the quality of automobiles and reduced the prices of automobiles, but also has enabled automotive products to enter millions of households and changed human lifestyles. For the sixth consecutive year, China’s auto industry has become the world’s largest producer and seller, and industry concentration has also increased year by year. However, compared to the foreign automobile market, we still have a long way to go. At the same time, we should also see that China has its own unique national conditions and development background. China's automobile industry has always been moving forward with relevant policies. The release of "Made in China 2025" will surely boost confidence for the entire automotive industry.

There is still a gap in industry concentration, far from a reasonable range

According to data from the China Automobile Association, China sold 32.491 million cars in 2014. The sales volume of the top ten enterprise groups in sales totaled 21.077 million units, accounting for 89.72% of the total sales of automobiles. The sales volume of the top ten self-owned brand car companies in total sales was 3,487,500 units, accounting for 15% of the total sales volume. In 2014, Japan sold a total of 556,28,887 cars, and the top nine sales were all Japanese brand cars. A total of 512,202 cars were sold, accounting for 92% of the total sales. In the most fiercely competitive US market, a total of 16,841,973 cars were sold last year. Among them, GM and Ford took the top two, with 2.935008 million and 2,471.315 million respectively. Chrysler ranked fourth, selling 2,090,639 cars. The three American car companies sold a total of 74.6962 million cars, which accounted for 45% of the total sales. Germany, a strong country in the automotive industry, sold 3,356,718 vehicles last year. Among them, Volkswagen, Mercedes-Benz, Audi, BMW occupy 1-4 respectively, a total of 1,422.67 million cars sold, accounting for 42% of total sales.

It is not difficult to see from the above data that, from the perspective of large enterprise groups, the concentration of the automotive industry in China is continuously approaching the international level. However, from the standpoint of independent brands, there is still a gap between us and the foreign automobile market.

“From the point of view of the world’s auto industry, the concentration degree of the Chinese auto industry is still far from a reasonable range.” Zhao Ying, Director of the Industrial Development Office of the Institute of Industrial Economics, Chinese Academy of Social Sciences, believes that “in other parts of the world, other developed countries’ automotive companies The industrial concentration is relatively high, for example, there are only 2-3 US car companies, 5-6 in Japan, and 2 in South Korea. Compared with the Chinese automobile market, the domestic automobile market can accommodate about 10 car companies, but now There are dozens of domestic vehicle manufacturers." According to statistics, there are currently more than 1,300 vehicle manufacturers of various types in China, of which there are 171 auto vehicle companies, 120 motorcycles, 900 special-purpose vehicles, 135 tricycles and 135 low-speed trucks.

New technologies help "light assets" and "multiple integration" provide new ideas

Zhao Yan, a veteran autosman who has followed and studied the development of China's auto industry for more than 30 years, said that most of the previous large-scale production was based on new production capacity and increased fixed assets. But this is often a huge risk. Once the investment exceeds the return, it can easily cause the capital chain to break. With technological innovation, new technologies are continuously put into use. The Internet, Industry 4.0, and intelligent manufacturing have all helped the automotive industry solve the "light asset" problem. In addition, the scale can also be improved from the form of industrial organization. Zhao Yan believes that "at present, our industrial organization is extremely loose, and it can be described as scattered." The competition between independent brands and the repeated construction are extremely serious. The "big and complete, small and all" phenomenon abounds. Zhao Yan stated that it is possible to adopt a “diversity-integrated” organizational form and establish an organization that surpasses the sovereignty of all enterprises, thereby forming a corporate group. This move will greatly benefit the promotion of industry concentration, the promotion of sharing of results among enterprises, and the reduction of costs. For example, the European Union and the NBA are all such organizations.

"Made in China 2025" Boosts Auto Industry Confidence

Zhao Yan believes that the automotive industry in Western countries, such as Europe and the United States, is operating in a closed environment and in full accordance with the law of marketization, and is the result of the development of market economy. Japan and South Korea and other auto industries from behind the country, the surface appears to be a market economy, but in fact the country will cause. China's auto industry is developed under an open environment. It is not a complete market economy. It is influenced by policies. The capital structure of the auto industry is still dominated by the state-owned economy. "So far, things in the West have not been applied in China. The core problem is that China's national conditions are so different from others. Countries that have directly changed from a planned economy to a market economy do not have such a way to go." Zhao Rock said. "The competition between countries is mainly reflected in three aspects: national will, national strength, and national capacity. So far, the national will demonstrated by China has been realized under the communist rule."

On May 8th this year, “Made in China 2025” was formally announced and proposed a three-step “three-step” strategy for China to build a powerful country. Through "three steps" to achieve the strategic goal of manufacturing a powerful country: the first step, by 2025 into the ranks of manufacturing power; the second step, by 2035, China's manufacturing industry as a whole reached the world's manufacturing power camp medium level; the third step, to In the 100 years since the founding of New China, my status as a major manufacturing country has been further consolidated and our overall strength has become one of the strongest countries in the world. The automotive industry as a concentrated expression of consumer demand, is in a leading position in the manufacturing industry, can be described as the "frontier position" of the national level of industrial manufacturing competition. “Made in China 2025” shows a strong national will. With the continuous improvement of China’s overall strength, under the strong mobilization capacity of the government, the automobile industry will surely develop greatly, and the confidence of self-owned brands will surely be greater. Boost.