The automotive market continues to expand
After China's accession to the WTO, the Chinese auto market continued to expand rapidly and sales of cars continued to grow at a double-digit rate. Before the reform and opening up, China did not have private cars. In 2007, 80% of China's car sales were purchased privately. China is already the second largest new car sales market in the world. In the almost stagnant growth of the global automotive market, the proportion of new car consumption in China in 2006 exceeded 10%. China's auto market has become the most important factor driving the global auto market.
Increased industrial technology level
At the beginning of reform and opening up, there was a huge gap in technology between China's automobile industry and the developed country's automobile industry for about 30 years. After 30 years of reform and opening up, through the integration of imported technology and independent development, the technological gap between China's automobile industry as a whole and the international advanced level has been shortened to 5 to 10 years. It has already reached the international advanced level in the field of commercial vehicle development. Close to. In the weakest car development field in China's auto industry, Chinese auto companies have shifted from independently developing low-grade cars to developing mid- to high-end cars.
The research and development of auto parts has always been the weakest part of the Chinese auto industry. After entering the 21st century, the research and development of auto parts has made great progress. Car engine development has achieved outstanding results. In the recent one or two years, the development of commercial vehicles for commercial vehicles by FAW and China Heavy Duty Truck Company has been successful, and the independently developed commercial vehicle engines have been basically close to the international advanced level.
In the world's most competitive automotive industry, the Chinese auto industry is basically at the same level as developed countries. The mixed-use buses and cars developed by Chinese automobile companies have basically completed the preparations for industrialization. Major breakthroughs have been made in key technologies and components for the development of fuel cell vehicles.
The rapid expansion of business
In 2000, the Chinese auto industry did not have an annual production capacity of one million units. In 2007, SAIC Motor, FAW and Dongfeng Automobile Group all produced more than one million automobiles, which accounted for nearly half of the nation’s automobile sales and continued to be the main force driving the development of the Chinese auto industry.
With the expansion of the company's scale, the concentration of the automotive industry has increased. In 1999, the output of the top three auto companies in China’s auto industry accounted for 42.6% of the total auto production; in 2006, the output of the top three auto companies in the Chinese auto industry was 2,629,600, accounting for 45.6% of the total auto production.
The scale of auto parts companies has expanded. In 2005, there were 4,447 large-scale enterprises with sales revenue of 344.9 billion yuan; there were more than 700 Chinese auto parts enterprises with sales revenue exceeding 100 million yuan and 39 companies with more than 1 billion yuan. In 2005, Wanxiang Group, which had sales revenue of more than 25.215 billion yuan, successfully acquired UAI, a U.S.-listed company, and more and more private auto parts companies began to acquire overseas auto parts companies to obtain technology and markets.
The pace of progress toward the world is accelerating
In 2005, the Chinese automobile industry realized for the first time a historic turning point in the number of auto exports that was greater than imports. According to the China Automobile Industry Association’s auto export data, in 2007, auto exports generally continued the momentum of rapid growth in 2006. The total value of the total import and export of auto products was USD 66.878 billion, of which the total import value was USD 25.982 billion, which was a year-on-year increase of 24.45. The total value of exports was 40.896 billion U.S. dollars, an increase of 45.31% year-on-year. In 2007, the export volume of automobiles exceeded 600,000 units, reaching 621,700 units, an increase of 78.95% year-on-year; the auto export volume reached 7.312 billion US dollars, a year-on-year increase of 130%.
Most of China’s automotive products exported overseas are products with its own brand. In 2007, the unit price of China’s auto exports has changed from the previous year’s average unit price of US$0.9 million to US$11,800.
Africa, Latin America, and Asia have traditionally been the major markets for Chinese auto exports. In 2007, China's auto exports to Europe have increased significantly.
Chinese auto companies began to export capital and technology. For example, Chery, FAW Group, and Great Wall Motor have established automobile production and assembly plants abroad. SAIC acquired Ssangyong Motors; SAIC and Nanjing Auto acquired British Rover Motors. Overseas acquisitions have become an important way for Chinese auto companies to acquire technology and brands.
Gradually increasing self-owned brands
In the Chinese auto industry, independent brands in the field of commercial vehicles have basically dominated; in the field of cars, independent brands have also gradually increased. In 2007, the cumulative sales of self-owned brand cars reached 1,242,200, accounting for 26% of the total sales of cars.
Problems existing in the process of reform and opening up - The capacity for independent innovation needs to be improved.
A certain degree of path dependence has already formed in the development of China's auto industry. The joint ventures rely too much on multinational companies in the introduction of new models and key technologies; China lacks dominance in the development of localization, investment, procurement, and market development of joint ventures.
In the field of cars, the chassis development capability and system integration capabilities of cars are still relatively weak, resulting in the overall technical performance, quality, and reliability of self-developed products that still have a large gap with similar foreign products. The overall development capability of mid- to high-end cars remains weak.
In the development of auto parts technology, the current domestic parts and components industry has a strong dependence on technology input, and the technology development can only meet the needs of the vehicle's adaptability improvement and the introduction of new products. Chinese auto parts companies have considerable development capabilities in some medium- and low-value-added products. However, they are far from the international advanced level, and they do not have the capability to carry out basic R&D, simultaneous development, system development, and advanced development. Many of the key components are just imitation of foreign products. The most advanced engine emissions produced by Chinese auto parts enterprises can only reach Euro IV standards, while the European Union has already introduced Euro 5 and Euro 6 standards. The mass production engine of Chinese auto parts companies is only equivalent to the international level of the 1990s. There is a gap of 10 to 15 years between the overall technology level of the auto parts industry and the developed countries.
As China’s big auto companies have entered into joint ventures with multinational companies, China’s auto parts companies have gradually divided into four systems: manufacturers that follow the European and American technical standards; manufacturers that follow the Japanese technical standards; manufacturers that follow the Korean technical standards; basically follow China's original manufacturer of technical standards. The four different technical standards systems have intensified the fragmentation and fragmentation of China's auto parts industry system. It is difficult for auto parts companies to achieve strategic alliances, and it is difficult to accelerate the development of enterprises through mergers and reorganizations, which severely restricts the auto parts industry cluster. And economies of scale. ——The foreign-owned parts and components industry has a clear tendency of foreign ownership and sole proprietorship.
Currently, there is a prominent problem in China's auto parts industry, that is, the tendency of foreign investment holding and sole proprietorship is becoming more and more obvious.
There are more than 1,100 foreign-invested parts and components companies in China, and most of them have relatively advanced production technology and high value-added products. With the gradual increase in the opening degree of the domestic auto market, foreign-funded enterprises have gradually shifted from a "cooperative type" strategy to a "controlled type" strategy. The tendency of Japanese-owned and Korean-funded companies to control and single-ownership is particularly evident. Newly built companies in recent years also tend to be either sole proprietors or controlling shareholders. With the entry of major automobile manufacturers in Europe, the United States, Japan, and Korea into China, under the constraints of different standards systems and driven by different interest targets, new closed supporting systems have been formed, greatly limiting the optimization of China's auto parts industry resources. The configuration affected the integrity of China's auto industry industry chain and the independent development of China's major auto companies.
It should be noted that through the control of major technologies and key components, the control of the entire industry chain is the main strategic measure for transnational corporations to carry out industrial transfer and industrial distribution globally.
Recently, the EU and the United States have filed lawsuits against China’s auto parts import regulations with a complete vehicle form. The key lies in this. The development of auto parts and components will, to a considerable extent, determine the process in which China becomes a world auto power. - There is still government-to-business intervention.
Since China's accession to the WTO, the rapid development of the automotive industry, so all local governments have supported it as a pillar industry to support local economic development, but also caused excessive government-to-business intervention. Although there were major events in the merger of SAIC and SAIC in 2007, the overall situation of local government support and intervention in the development of local auto companies has not changed fundamentally. The Chinese auto market continues to develop at a rapid rate. Local governments still try to obtain political achievements by supporting local auto companies. This situation cannot be fundamentally changed in the short term. - The challenges in energy and resources are increasingly serious.
Chinese industry has gradually entered a stage of high-cost development, and so is the automotive industry. As China's auto industry continues to expand, the challenges facing China's auto industry in terms of energy and resources are becoming increasingly severe.
First of all, the Chinese automobile industry is facing a long-term energy challenge.
According to customs statistics, in 2007, China’s oil imports have reached 196.8 million tons. China has become the second largest country in the absolute level of oil consumption, and the largest country in the incremental level.
Automobiles are the main areas of China's oil consumption. According to the forecast of China's research institutions, China's oil production in 2020 is about 185 million tons, and the fuel consumption of the auto industry alone is 218 million tons. At present, China has become the second largest energy consumer in the world, and the growth momentum of energy consumption will continue. According to the International Energy Agency (IEA) forecast, as more and more Chinese consumers purchase cars, by 2030, 80% of China’s oil consumption will need to be imported. With increasing dependence on energy imports, the growth in China's auto fuel consumption not only strategically increases China's overall national security costs, but also makes the auto industry increasingly sensitive to fluctuations in international oil prices.
Secondly, the rising prices of imported resources have exerted enormous pressure on the production and operation of the auto industry.
In 2008, international iron ore prices continued to increase substantially, and steel prices continued to increase, which increased the cost of automobile production. In the first four months of 2008, China imported 150 million tons of iron ore, an increase of 15.1% year-on-year, and the average import price was US$129.5/ton, up 80%. At the end of April 2008, the domestic composite steel price index was 146.48 points, up 35.32 points year-on-year. Among them, the prices of the eight key steel products monitored by the China Iron and Steel Association show an upward trend. China's auto industry is obviously feeling the pressure of rising costs.
The non-ferrous metal ores such as copper, aluminum, and zinc, which are needed for the development of China's automobile industry, have large gaps and insufficient reserves. It is estimated that by 2020, iron ore, copper, aluminum, zinc and other minerals will need to import 540 million tons, 5.9 million tons, 13 million tons and 2.35 million tons, respectively. - The impact of car use on the environment has become increasingly prominent.
In the 21st century, automobile emissions have become a major factor affecting China's environment and have become a key monitoring target for government environmental protection agencies. Environmental pollution in large and medium-sized cities in China has been transformed from soot-type to soot and motor vehicles. The increase in nitrogen oxides, particulate matter, and VOC emissions has led to an increase in urban ashes and low visibility. The particulate matter emitted by automobiles accounts for about 20% to 30% of urban particulate emissions. In major cities such as Beijing, Shanghai, and Guangzhou, motor vehicles have become the largest source of pollutants such as carbon monoxide, nitrogen oxides, and hydrocarbons. According to current emission levels, the overall share of automobile pollution in large and medium-sized cities in 2010 will rise to about 79%. The environmental constraints on the auto industry will be even more severe. ——The intensity of product structure adjustment needs to be increased.
The structure of China's auto products and China's energy structure are seriously mismatched, especially in the field of cars.
As the country still imposes price controls on refined oil, large-displacement sedan sales are occurring in such an oil-starved developing country. In 2006, the government took a series of measures to promote the development of small-displacement cars, but the intensity was not enough. After a short period of hot sales, in 2007, cars with a displacement of less than 1.3 liters showed a downward trend compared with the previous year. In contrast, in the first four months of 2008, China produced 143,000 SUVs, an increase of 40.97% year-on-year, and imports also grew faster. This situation, which is extremely incompatible with China's energy supply, is in urgent need of national adjustment through policies. - The rural market has not received enough attention.
In the 1990s, agricultural vehicles once had a big development. Since the beginning of the 21st century, agricultural vehicles have continued to shrink. Many agricultural vehicle manufacturers have either upgraded to formally produced cars or they have already closed down. The in-depth development of the rural auto market is an important factor in ensuring the sustainable development of the Chinese auto industry. How to improve the product level and quality, make affordable and safe cars for farmers become a major issue for the automotive industry.
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