Local self-made automotive components to prevent marginalization
December 22, 2022
In the auto anti-monopoly storm, parts and components are also an important topic in addition to the high prices of luxury cars.
This will have to attract the attention and thinking of the industry: Why is it that the foreign companies are luxury car brands and foreign suppliers?
The "anti-monopoly" has already raised the alarm in at least the following three aspects.
First of all, the high-handedness of luxury cars was formed and developed to be fearless, indicating the irreplaceability of their products. Secondly, the lax industry supervision showed that they were greeted with extravagance and led to the loss of control and loss of consumption. Second, the lack of industrial dependency and discourse power indicated that Locally-made auto parts are marginalized.
If everyone is aware of this, or has already seen this, they are feeling this. I believe that the pain points of China's autos are not limited to the loss of market control or the humiliation of being rejected, but the self-esteem of the industry. Security and economic security have never been challenged or crisis.
As we all know, in the field of passenger cars, the mainstream car companies are mainly joint ventures, market players are dominated by joint venture products, the luxury car market is eaten by foreign brands, and there is a strange phenomenon that “cheap cars are difficult to sell and high-priced cars are easy to sell”. . According to statistics, in July this year, a total of 460,100 self-owned brand passenger vehicles were sold, which accounted for 34.55% of the total passenger car sales, which was a decrease of 1.68 percentage points from the previous period and a year-on-year decrease of 0.64 percentage points; a total of 151,400 units of self-owned brand cars were sold. It was down 27.18% month-on-month and a decrease of 22.66% year-on-year, accounting for 17.65% of the total sales of cars. Look at the luxury car market, foreign brands almost dominate the world. In the first half of this year, the sales volume of China's luxury cars reached 808,000 units, and the overall sales volume increased by 27.5%, far exceeding the increase of 14.8% in the passenger car market. This is close to the sales volume of China's luxury cars last year that was less than 1 million units.
From these two sets of data, the major foreign brands that constitute China’s auto consumption dominate. Especially in the field of luxury cars, independent brands can not get involved, and even the threshold can not get in. As a result, it has fueled the madness of luxury cars into an uninhabited environment, arbitrarily increased their prices, privately pursued price monopoly, and raised the threshold for after-sales service, resulting in four complaints that “can't afford to repair”, especially for ultra-luxury cars. It is not uncommon for news from maintenance disputes to become news. These are the objective facts that can be seen and perceived.
This seems to be a "knot." In the people's impression, imported cars are embedded in people's consumer awareness. Although everyone knows that there is a big difference between the domestic price and the international price, and that one’s knowledge is unfair, some people are willing to buy it. The most typical is the Land Rover Range Rover knowing that the price is ridiculously high and also up to 400,000 yuan to increase sales, it is incredible. However, this phenomenon is not a case. It has been a long time since it started today. It can even be traced back to the import car craze in the 1980s. At that time, the import of cars was only about 100,000 vehicles a year, but it has aroused great public opinion, prompting the industry to raise the banner of “producing products into the market”, trying to block imports through joint venture production, and relying on localization to develop their own industries. Now it seems that this has become empty talk. In fact, the joint venture did not block imports, and domestic production did not achieve its own superior position. On the contrary, imported luxury cars have been intensified, and joint ventures have been busy with OEM compliance, and independent brands have been embattled.
However, the seriousness of the problem is not that we can't produce luxury cars, we can't see the fathers of Jiangdong, but the market doesn’t get real technology, and we always stand still. According to the information disclosed by the National Development and Reform Commission, 12 Japanese-owned parts and components companies are involved in "horizontal monopolization" and are deeply worried. For example, in the bidding process, several companies collude, one company reported relatively low prices, and other companies reported high prices in turn. This trick also has a criminal record in the United States. However, it is a fact that Japanese auto parts technology (automotive electronics) is leading international counterparts. Almost all automobiles have the "blood" of Japan.
“Overseas capital controls most of the market share of domestic auto parts sales. In 2012, domestic auto parts sales revenue accounted for only 20% to 25% of the whole industry, and auto parts manufacturers with foreign investment background accounted for the industry’s More than 75% of these suppliers of foreign-funded parts and components, wholly-owned enterprises accounted for 55%, and Sino-foreign joint ventures accounted for 45%.” Therefore, “self-owned domestic-funded parts and components companies are basically marginalized, and the market share is rapidly shrinking year by year. The state of existence is not optimistic."
Such reports and analysis are constantly reminding the car that the crisis is not only in the vehicle but also in spare parts, and the key core technologies are monopolized by foreign car companies. From this, it is not difficult to see that the Chinese automobile has a prosperous appearance and a large body, and in fact it is worthy of a name and belongs to a calcium-deficient giant. Data shows that China is becoming a “cash cow” for multinational car companies and a back garden for consumption. The entire luxury car market in China is dominated by foreign brands. Only the German luxury cars accounted for 73% of the market share.
This is a very unusual phenomenon. On the one hand, it is because the independent brands cannot go up, there is no core technology in the hands, the reliance on foreign capital and joint venture parts suppliers for the entire vehicle level increase, and the joint ventures are encircled in the market competition, even the joint venture autonomous vehicles that are less than 40,000 yuan are launched. The “bloodwashing” of domestic self-owned domestic brands; on the other hand, the luxury car price monopoly, illegal profits, the use of channel advantages for after-sales exploits, maintenance costs remain high, so that the "zero ratio" actually as high as 1273%.
Through super profits, we can easily see that “the out-of-control consumerism, the effects of the mass media, and the general public’s acceptance of the spirit of celebrity behavior have brought about spiritual and intellectual emptiness.” This is not only caused by One of the important reasons for the increased corruption on the wheels reflects the fact that there is no top-down understanding of car consumption and does not realize that “the lifestyle choice is not only the individual, it also belongs to the society”. Sadly, in the national private car discussion that began 20 years ago, the problems that have occurred today have long been reminded and even cautioned, but why couldn't we avoid it? Similarly, the development of autonomous vehicles has also had a clear strategy, that is, through joint ventures, technology introduction, digestion and absorption, localization, and then independent development, but why are they suffering from "joint venture dependency"? Abandon the strategy, only talking about the scale and sales, and even forget the mission by giving birth to children (using joint venture channels to sell imported cars)? On the other hand, ignoring the importance attached to the parts and components industry, and even short-sightedness, letting itself go out of control and falling into full-scale fallout (from 2009, the strategy of foreign-investment parts manufacturers in China began to change from "cooperative" to "controlled." "Type"), which caused the difficult situation of the Chinese auto industry, is difficult to be confident.
"Anti-monopoly" is only a means of governance, not a permanent solution. If the self-owned brand does not go up, the core technology is not mastered, and there is no advantage of its own parts and components. After the storm, what should we do?
Shenyang Zhongda Huanxin Refrigeration Technology Co., Ltd.
