7 million vehicles: China's auto industry stands at the beginning


Editor's note: China has become a hot market for global automakers. In previous series of reports, this newspaper reviewed for you the policies and regulations affecting the automotive industry in the past year; the joint venture and restructuring of China's auto finance market; and the remarkable market for independent brand enterprises in China. Performance; The development track of China's car industry in the five years since China's accession to the WTO; The growing confidence and ambition of the development of the world's spare parts predators in the Chinese market; The impact of macroeconomic and policy factors on the future development of China's commercial vehicle market. In the new year, standing at a higher starting point of 7 million vehicles, the Chinese auto industry will also face greater challenges and opportunities.

At the beginning of the new year, the latest statistics from the China Association of Automobile Manufacturers gave people an exciting news: In 2006, China’s auto production and sales both exceeded 7 million vehicles, surpassing Japan and becoming the second largest in the world after the US market. Big car consumer country. At the same time, the sales volume of 7 million vehicles means that China's auto industry has also embarked on a higher development platform, reaching a turning point from a "car manufacturing country" to a "car manufacturing country."

Passenger and commercial legs walking on the two legs have significant advantages in scale

Cars are on the fast track, commercial vehicles are not in a hurry - use this sentence to describe the 2006 automobile market should be said to be fairly appropriate. The growth rate of the sedan in 2006 was amazing, and even the people in the industry once again described it as "blowout." In 2006, China's auto consumption structure was further adjusted. The sales volume of cars accounted for 53% of China's total auto sales for the first time, and they remained stable in half. On the other hand, commercial vehicles are always in a hurry to maintain steady growth. According to statistics from the China Association of Automobile Manufacturers, the production and sales of commercial vehicles in China still maintained a production and sales growth rate of about 15% in 2006, and it is not easy to achieve this.

In 2006, the economic benefits of China's entire vehicle companies, especially the large-scale automobile enterprise groups, generally improved. From the statistical data, from January to November 2006, China's total vehicle company realized a total profit of 31.04974 trillion yuan, a year-on-year increase of 52.07%. Such a high rate of increase is rare in recent years. Among them, in 2006, FAW and SAIC not only exceeded one million sales, but also achieved higher profit growth; In addition, Dongfeng, Guangzhou Automobile, Changan, China National Heavy Duty Truck, Beijing Automotive and other large auto companies have also maintained a high level of profitability.

The advantages of independent brand market appear

In 2006, a series of related policies launched by the state improved the automobile consumption environment and promoted the sales of small-displacement vehicles. According to the statistics from the China Association of Automobile Manufacturers, China's 1.6L or lower displacement cars accounted for the leading position in the market in 2006, and the advantages of our country's own-brand cars in this market are gradually emerging.

From the perspective of the development environment of independent brands, the huge Chinese market will continue to maintain strong demand for economic vehicles. According to the statistics from the China Association of Automobile Manufacturers, the market share of China's self-owned brand automobiles continued to increase in 2006. The cumulative sales of self-owned brand passenger cars in 2006 totaled 2,146,700 units, accounting for 41.47% of the total sales of passenger cars; The cumulative sales of sedans reached 98.28 million, accounting for 25.67% of the total sales of cars.

Another result that accompanies the expansion of self-owned brands in the domestic market is that China’s auto exports have repeatedly made great achievements. Chery, Hafei, Great Wall, and Brilliance ... China's cars have begun to enter the developing world, and even Europe and other developed countries in the world. According to statistics from the National Customs Automobile Import and Export Statistics, from January to November 2006, China’s total auto imports totaled 1.866 billion U.S. dollars, an increase of 39.50% year-on-year; exports totaled 25.516 billion U.S. dollars, an increase of 43.04% year-on-year. Among them, from January to November of 2006, a total of 217,700 vehicles (including chassis) were imported, representing a year-on-year increase of 40.42%. In the same period, a total of 311,600 vehicles were exported, a year-on-year increase of more than one time. In particular, the export of China's self-owned brands has changed from passive to active, indicating that the moments when Chinese auto companies confront each other with international giants are approaching. At the same time, the soaring of automobile exports in China is not unrelated to the acceleration of the export pace of independent companies such as Chery, Great Wall, Hafei, and Brilliance. Among them, Chery Automobile's total exports exceeded 50,000 units in 2006, ranking the first in passenger car exports. Hafei Motors exported 35,000 vehicles; Great Wall Motor exported 30,500 vehicles. These independent companies have gone out of the country with a growth rate of more than 50%, demonstrating strong vitality.

Policy-oriented reliance on major group assets reorganization

Based on the overall growth of the national economy and the growth momentum of the auto market in 2006, China's auto industry will maintain a 15% growth in 2007, and it is expected that the annual sales volume will reach 8 million.

However, the accumulation of quantity is not entirely welcome; it is clear that the country believes that the qualitative changes in the automotive industry are even more important. At the end of 2006, the National Development and Reform Commission promulgated the Opinions on Structural Adjustment of the Automotive Industry. This adjustment opinion was considered by the industry to be a supplementary version of the “Auto Industry Development Policy” promulgated in 2004, but it was more direct than any previous document. And clear. The National Development and Reform Commission strives to adopt six measures to macro-manage and regulate various issues such as overheated development of the auto industry, excess production capacity, corporate restructuring, and development of independent brands.

The "Opinions on Structural Adjustment of the Automotive Industry" pointed out that the self-owned brand cars have made considerable progress. However, the current independent brands still have many shortcomings such as low profitability, weak competitiveness, and weak development capability. Therefore, local government authorities should make the company's R&D capacity building and independent brand building an important assessment indicator, and strive to improve its own research and development capabilities and cultivate its own branded products.

From the current point of view, the market share of independent brands in 2006 is already close to 27%. The self-owned brand is struggling to stand on equal footing with foreign brands, coupled with its own brand in the overseas market spared no effort, in 2007 the domestic market share of independent brands can account for one-third, will be worth the wait.

Although the goal of 7 million vehicles has been achieved, the concentration of the automotive industry in China is still very low. There are only two companies that produce 1 million vehicles each year. There are a large number of enterprises that produce 10,000 vehicles a year. It can be predicted that for a period of time in the future, China's auto industry will continue to stage a tragedy comedy of asset restructuring.






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