Exports of automotive products will show an accelerated growth trend

Deloitte China today announced the results of a questionnaire survey on China's auto exports by senior executives of auto and parts companies in China. The survey found that from this year to 2010, exports will account for 25% to 50% of auto sales. From 6% to 50%. According to reports, the surveyed enterprises interviewed by the survey included state-owned and private enterprises, joint ventures, and wholly-owned enterprises, which accounted for half of the total, while parts and components companies and vehicle companies shared 80% and 20% respectively.

The survey found that both exporting and non-exporting companies have expressed great concerns and expectations about product exports. According to the results of the survey, the average ratio of auto product exports to total sales revenue is estimated to increase from 14% in 2006 to 28% in 2010, and exports will show a clear acceleration. At the same time, the North American and European markets have been cited as a priority market by most of the visited parts manufacturers.

Quality is generally regarded as the most important factor for the successful operation of exports. Some auto companies have experienced attempts in overseas markets and found that product quality has become a key factor in their successful entry into the international market. Low-cost, sales channels and networks or relationships, brands, and products that meet safety and emission standards have been cited by most of the interviewed companies as important factors for successful export operations. The difference is that vehicle companies are more concerned about after-sales services and maintenance networks or relationships. The parts and components companies put technological innovation in a more important position.

With the gradual expansion of export scale, international relations and after-sales service have also attracted the attention of automobile companies. For automobile companies, the major difficulties and challenges they face are international relations, quality standards and certification, after-sales services, cost competitiveness, and the number of product categories. For parts and components companies, quality standards and certification, cost competitiveness, after-sales service, international relations, transportation and delivery caused a lot of problems, due to the double extrusion of upstream and downstream industries, and the added value of most existing products. Low, cost control has caused greater pressure on most auto parts companies.

The research report also gives suggestions. In addition to strengthening product quality and cost competitiveness, Chinese auto parts companies should also consider expanding their scale and committing themselves to improving supply chain processes and integrating into a global network. Enterprises should further improve their internal and external information credibility. Consider setting up an information technology system that meets the needs of effective operations to advance the coordination of the supply chain.

A country that wants to become an automobile exporter should first establish a fully competitive domestic market with high quality and high efficiency. After decades of development, commercial vehicle manufacturing in China has already achieved strong international competitiveness in some market segments and low-end product areas, such as light trucks and large and medium-sized passenger vehicles. The prospect of China's car exports depends on the future improvement of Chinese auto companies' own competitiveness, more understanding of the international market, and adopting a reasonable market strategy.

The senior managers of automotive export companies attach great importance to cooperation with international partners, using their sales, distribution and service networks in overseas markets, as well as professional experience. This is a very important step for Chinese auto companies to gain a foothold in overseas markets. In addition, as Chinese auto companies’ export products have expanded from more practical light trucks and large and medium-sized passenger vehicles to cars that rely more on personal purchasing decisions, auto companies should focus on establishing a brand image, understanding market consumption, and developing products tailored to customer needs. Change the product's "low quality and low price" market awareness. Enterprises should focus on meticulous management, consider implementing advanced quality improvement methods such as Six Sigma to improve product quality, and impose strict time quality management systems and procedures.