Problems in China's automobile industry

Problems and Development Countermeasures of the Automobile Industry (above)

Abstract: At present, China's automobile industry exists such problems as small economic scale, backward technological development, unbalanced development of import and export, unsound consumption policy and backward service management. In order to improve the competitiveness of China's automobile industry, in terms of opening up to the outside world, it is necessary to promote internationalization strategy, independence strategy and independent development strategy. In terms of domestic policy, it is necessary to promote industrial reorganization, develop national brands, in line with the implementation of the necessary moderate protection of industrial policy, the automobile sales financing policy and automobile tax policy adjustments, and, at the same time, to strengthen infrastructure construction.

1.1.1 Problems in China's automobile industry

1.1.1 Problems of economic scale

1.1.1.1.l The automobile industry enterprises can not reach the critical point of economies of scale

Enterprises can only be profitable after they reach a certain scale of production. The critical point of economies of scale of various types of automobiles, the national automobile industry car production volume of more than 2 million units; car enterprises for 200,000 -300,000 units; light-duty truck enterprises for 100,000 - 120,000 units; heavy-duty truck enterprises for 10,000 -80,000 units. At present, China's existing 124 assembly plants, 52 tuning plants and 2,000 automobile engines, parts and components and ancillary parts enterprises, only the FAW Group Corporation and other five companies with an annual output of more than 100,000 units. According to the international 250,000-300,000 units of the economic scale of the threshold requirements, China has not yet an automobile enterprise can reach, even if a Shanghai Volkswagen Automobile Company Limited "Santana" sedan has only reached 230,000 units of the scale. China's automobile industry is far from reaching the 2 million units with the ability to develop a wide range of products.

The United States three major automobile companies accounted for 90% of the country's automobile production; Japan's three major automobile companies accounted for 80% of the country's automobile production, automobile production concentration is very high. China's automobile manufacturers more than the United States, Japan, Western Europe combined, on the contrary, the annual output is only equivalent to a foreign automobile companies a few months of production, which reflects the backwardness of China's automobile industry industrial organization.

1.1.2 automotive industry investment, slow results

China's automotive industry, the existing fixed assets of less than 40 billion yuan; and the United States General Motors fixed assets amounted to 36 billion U.S. dollars. China's key project construction cycle of about 10 years; and South Korea invested 1.8 billion dollars in the construction of Hyundai Motor Company, 18 months to build, 4 years to recover all the investment. China's auto industry is small, low productivity, resulting in high costs.

1.1.3 automotive industry plants scattered, management, closed to each other, the lack of specialized division of labor and collaboration

Provinces, cities, regions, local protectionism is serious, in order to ensure that the local economic interests and tax revenues, provinces and municipalities to local enterprises to give special incentives for foreign enterprises with inter-regional barriers to entry. This has resulted in small-scale, high-cost, chaotic management and old product enterprises are still surviving, do not want to forge ahead, but also impede the expansion of the economic scale of domestic enterprises and specialized division of labor and collaboration, and led to most of the domestic enterprises to exclude each other, the cooperation of the taboo, would rather joint ventures with foreign companies, but also refused to joint ventures with domestic enterprises in the same industry phenomenon.

1.2 technology, development level backward

Currently, China's automobile industry equipment is mostly the product of the 1950s and 1960s, even in the FAW Group Corporation and Dongfeng Motor Company, such as the country's mega enterprises, the level of machinery and equipment in the 80s accounted for only 20% -30% of the process, monitoring and testing from the international level of advancement. There is a big gap. In terms of product types, the technical level of China's automobile products basically can only reach the international level of the 1970s, and the degree of localization of new automobile products introduced into China is still not high. China's automobile industry lacks and disperses scientific research personnel, and investment in scientific research is small. For example, after Changchun Automobile Research Institute was merged into FAW Group, the scientific research expenses only accounted for 1% of FAW Group's sales. The proportion of the scientific research expenses of General Motors, Ford and Fiat is several times higher than that of FAW Group. At present, only the FAW Group has the ability to independently develop cars, but some key components are also dependent on imports, the previous car project almost entirely dependent on the introduction.

1.3 import and export is extremely unbalanced

China's auto imports totaled 2.1 billion U.S. dollars, exports totaled 1 billion U.S. dollars. There is a considerable trade deficit between import and export. Now, China's auto tariffs are still set at 80%-100%, if the tariffs fall again, this deficit will continue to climb. China has now begun to automobile products production and marketing circle in the domestic market, mainly to solve the problem of import substitution, which makes China's automobile industry is difficult to get out of the country.

1.4 Consumer Policy Issues

One, China's car import tariffs for 80% -100%, that is, in fact, China's own production of cars do not have a substantial price advantage.

Secondly, the phenomenon of out-of-priced charges in China's automobile market is very serious. According to a province on the car purchase tax collection survey, there are 22 costs that can be documented. In addition to the vehicle purchase surcharge approved by the State Council, which accounts for 10% of the vehicle price, there is also a road capacity increase fee that accounts for 3% of the vehicle price. Entry inspection fee, as well as the number plate fee, driver's license fee. Anti-theft locks and typing fees, household fees and exhaust gas testing fees. After the car household on the road, there are vehicle insurance premiums, road maintenance fees and other various burdens. Beijing's car on the road, but also motor vehicle parking certificate, this one also had to spend 1,000 yuan -3,000 yuan. According to the survey, to raise a private car, in addition to a year of fuel consumption of about 4,000 yuan, at least annually also need to spend other costs 9,000 yuan -10,000 yuan.

1.5 service and management backward

China's auto sales behavior compared with international practice is a big gap, the level of service is also backward. China's auto market is now basically spot cash sales, the lack of credit, savings on car purchases, installment payments and lease sales and other promotional means. At the same time, automobile sales, warranty repair, parts supply and information and data consulting and other service functions are also very unsound.

China's per capita wage is 1/20 of that of Europe and the United States, but the price of cars is not cheaper than others, one of the reasons is the low level of management and low labor productivity. Chinese enterprises have not formed a modern enterprise system, the management level still needs to be further improved.2 Improving the competitiveness of China's automobile industry development countermeasures research

2. and opening up to the outside world

Internationalization will be the general trend of the development of the automobile industry. China to develop the automobile industry can not only focus on the domestic market, must open the door. On the one hand, must go out; on the one hand, must bear the impact from the world. After joining the WTO, we have been unable to protect the same as before through a variety of barriers to the domestic industry, so in the protection period, we must adjust the general direction of the development of the automotive industry.

2.1.l internationalization strategy

For China's automobile industry, in order to meet the challenges of globalization of the automobile industry, enterprises must take the road of internationalization. The essence of international competition is the fight for survival space and development space. At present, the global automobile market has become saturated, and multinational automobile groups are competing fiercely in the limited world automobile market. After entering the WTO, Chinese automobile enterprises will not be able to defeat the powerful competitors and lose part of the domestic market share. In the process of globalization, the interference of national industrial policy will be weaker, enterprises rely on their own strength is far from being able to survive. In order to open up space for survival and development, forming alliance with competitors is a strategic choice to reduce risks and costs and improve the overall competitiveness of enterprises. Since the reform and opening up, China's automobile enterprises have also emerged a number of successful examples of participation in international strategic alliances. For example, Shanghai a Volkswagen, Jiangling Automobile Company and Shanghai automobile system parts and components enterprises and some world-class suppliers of the alliance, for the future formation and participation in the strategic alliance has accumulated rich experience.

The participation of Chinese automobile enterprises in internationalization does not mean that China's auto industry loses its independence. In the face of multinational automobile groups pushing their internationalization and localization strategies swiftly around the world, Chinese automobile enterprises should be multi-dimensional and multi-variable. The key is to harmonize the strategies of multinational automobile groups with the development strategic goals of Chinese automobile enterprises.

First of all, China's automobile enterprises should be in accordance with the principles of the market economy to carry out a strong combination, the formation of two or three domestic groups with a certain degree of competitiveness, and then use this to further establish an international strategic alliance with multinational automobile groups, and strengthen the competitiveness of the group.

Secondly, China's automobile groups should gradually give up the traditional idea of parts and components supporting the self-contained system, the establishment of several parts and components group with economies of scale, in order to establish a strategic alliance with some of the world-class suppliers, and become a strategic partner of these world-class suppliers in the region.

2.1.2 Independence strategy

To achieve the goal of independence strategy, we can no longer joint ventures of uncompetitive enterprises with large foreign enterprises, which can only become subsidiaries of large foreign enterprises or merger targets. To internationalize enterprises, the way out for developing countries can only be to choose appropriate strategic partners to form alliances, the so-called Korean model. China's enterprises to have complementary advantages with foreign parties or a certain degree of international competitiveness, that is, to have a certain degree of independent development capabilities and intellectual property rights, which should be the first in the country to carry out a strong alliance. Only in this way can we achieve the purpose of internationalizing our domestic enterprises and forming strategic partnership alliances. At the same time, this can not only have more autonomy, but also strengthen the competitiveness of the international automobile market.

2.1.3 self-development strategy

2.1.3.l to absorb and digest foreign advanced technology and management methods as the focus

Opening up to the outside world should be focused on absorbing and digesting foreign advanced technology and management, and ultimately make China's automobile enterprises to embark on the road of self-development, self-development. Realize the change from focusing only on the introduction of technology to focus on independent development and innovation, from the introduction of foreign models to the independent development of their own models change.

a. Increase scientific research, development funds

China's enterprises in the development of research and development costs accounted for only 1% of sales or less, far less than the development of the same industry in foreign research and development costs should be adjusted to more than 3%, in order to develop a more standardized, to meet the needs of consumers to do the capital to ensure that the product.

b. Establish and improve the computer application system

Computer technology is another productive force of the enterprise. Especially in new product development, modeling CAS, design CAD, engineering analysis CAE, test CAT and manufacturing CAM integration system, is very key technology. Its application not only saves labor and material resources, but also improves efficiency and develops new products as soon as possible.

C. Accelerate the cultivation and construction of talents

Should accelerate the training of cars, buses and trucks development and testing of technical personnel and CASCAD, CAE, CAT, CAM computer application technology talents and engines, key components and electronic technology.

2.1.3.2 product development direction

a. To more comfortable, safe, applicable direction

Survey shows that the next period of time, inexpensive small medium and low-grade cars will be the vast majority of private car consumers to buy the main object. Therefore, the world's major automakers are in full development to capture market share. Another industry source said that the mass car has great market potential, but the high-end car is the manufacturer's trust in the user's gold standard. Whether it is a mass-type car or a high-grade car, when purchasing, consumers have a unified demand for more comfort, safety. Convenience and durability. This demand characteristics can be seen both in the international automobile market and sales in the domestic automobile market.

b. Environmental protection, energy-saving cars is the direction of development

Every country in the world has realized the importance of environmental protection and energy conservation, have formulated and introduced a variety of automobile emission standards and encourage the development and use of new energy sources. Therefore, the future of the car wants to drive on the roads around the world, must comply with the standards of each place. Japan, Europe and the United States are actively preparing to develop an international agreement aimed at integrating the current automobile standards and restrictions that vary from place to place. After the international agreement comes into effect, Japan. U.S. and Europe may set the strictest specific standards. This will have implications for other countries and regions.

National Research Center

Problems and Development Countermeasures of the Automobile Industry (below)

2.2.2 Domestic Policy Aspects

2.2.l Promoting Industrial Reorganization and Developing National Brands

The automobile industry is a typical economy of scale industry, and the scale of which is not up to the requirements of the effective batch size, which is a direct result of the high cost. Cars are expensive, not to talk about market competitiveness. Since 1998. The world automobile industry has begun a new wave of mergers and acquisitions, while China's automobile industry is still in the "scattered, chaotic, poor" situation, so that the dispersed use of limited resources, the delay in the formation of the scale of the advantages of China's automobile industry is increasingly backward for an important reason. For this reason, China's automobile industry in the period of economic adjustment, the focus of capital management is no longer blind expansion, but should be based on internal integration, in order to adjust and optimize the structure of the center, the implementation of capital restructuring.

The main measures are, we must support large enterprise groups and key backbone enterprises, focus on investment, accelerate the integration, improve industrial concentration; do not indiscriminately spread out, to a high starting point, large volume and specialization; continue to govern the irrational structure, close the inefficient small and medium-sized enterprises, will be integrated into the specialization of the large-scale production system, the formation of a pyramid-shaped multilevel vertical division of labor and cooperation mode; increase the enterprise scale and replace market regulation with relatively stable intra-group transactions. Shanghai Automotive Industry Corporation (SAIC) said that Shanghai General Motors intends to reorganize and transform itself into a joint venture with Guangxi Wuling Automobile Company to increase Wuling's production of microcars from the current 80,000 units to 200,000 units. Through the second phase. III construction, gradually expanding the scale to 400,000 and 1 million vehicles, thus accelerating regional development efforts and economies of scale.

After the reorganization, enterprises should vigorously develop national brands and create famous brand enterprises. Self-development of new products to meet consumer demand. The government should also formulate appropriate industrial policies to correctly grasp the development direction of enterprises. At the same time, it should formulate a reasonable national unified fee and tax policy to avoid the rise of local protectionism.

2.2.2 Industrial and Consumption Policies

Industrial policy refers to a kind of policy that the state plans, intervenes and guides the formation and development of industries, and its purpose is to guide the optimal allocation of social resources between industrial sectors and within industries, so as to establish a high-efficiency and balanced industrial structure, and to promote the sustained and healthy development of industries.

China's "Industrial Policy for the Automobile Industry," which was promulgated in 1994, is actually a medium- and long-term policy for the automobile industry. In 1994, China promulgated the "Industrial Policy for Automobile Industry", which is actually a medium- and long-term development plan for the automobile industry, and is a supportive policy necessary to ensure the development of the automobile industry. Firstly, the Policy clearly and unambiguously indicates that the Chinese government attaches great importance to and is determined to develop and protect the automobile industry; secondly, it reflects China's concern for the Chinese-foreign joint venture and cooperative enterprises in the production of automobiles, motorcycle vehicles and engines by stipulating that the proportion of the Chinese party's shares in such enterprises shall not be less than 50 percent. The regulations reflect China's attitude toward capital structure, production and management rights, and distribution of benefits in a mixed economy, as well as the Chinese government's determination to establish a "domestic automobile industry".

After the promulgation of the Industrial Policy for the Automobile Industry, large multinational corporations in the world's automobile industry have been visiting China to seek opportunities to enter the Chinese automobile industry market, and at the same time, the quantity and quality of foreign investment in China's automobile industry have also increased by leaps and bounds. However, the implementation of the industrial policy currently lacks a strong operation, and thus still looks rather pale.

China's automobile enterprises have different affiliations, so there are objectively different interests and interest-driven division and protection patterns. This division and protection not only seriously restricts the horizontal flow of capital resources, but also the optimization of the national unified market allocation of a serious imbalance, resulting in a large number of unreasonable duplication of investment, duplication of the introduction of duplication, duplication of construction and duplication of production, so that the product, the enterprise and the industrial structure of the homogenization.

Japan and South Korea on the protection and support of the national automobile industry and its development has given our country a great revelation: First, a country's industrial policy must give the country's automobile enterprises with a clear direction of development for the development of enterprises to provide a good environment; Second, in different periods of time to have the appropriate policy guidance. Support the development of enterprises, and there should be strong operational means; Third, encourage the automobile industry to take the road of group development, and promote the implementation of the independent development of enterprises.

2. 2. 2. 2. 2. l industrial policy

China's automobile industry or to implement the necessary moderate protection of industrial policy. China's automobile industry is under the country's strong protection of the growth, even now, China's automobile industry tariff level is still between 80% -100%. Coupled with the protection of various non-tariff barriers and local protection, China's automobile industry is able to compete with foreign products in the domestic market even if it "thinks about progress". This leads to China's car production in the field of average profit margin of 20%, while the average profit margin in developed countries is only 3% -5%. Even so, Chinese enterprises in addition to the Shanghai Automotive Industry Corporation and Tianjin Automotive Industry Corporation and a few other enterprises, many enterprises are still in a loss-making situation.

China's automobile manufacturers of the thin base, coupled with the lack of experience in competition with international enterprises, in the WTO accession after the degree of protection is greatly reduced, I do not know whether the domestic car can withstand the impact. So China's automobile industry still needs moderate protection. Moderate protection can make the auto industry both pressure and confidence.

The main measure of protection is still the implementation of high tariffs on imported cars. Because the car tariff is the highest peak of import tariffs, so the country to reduce import tariffs, necessarily need to cut its peak. In recent years, for the early acceptance of the basic requirements of the World Trade Organization, has gradually reduced the average level of automobile tariffs, stabilizing it between 80%-100%, if the sequential decline to 60%-80%, five years down to the level of 25%, can be eased and to avoid too great an impact. In addition, some hidden barriers and exceptions can be taken to protect the automobile industry, such as the implementation of program management. Catalog management and project management, tariff quota system, differential tariffs, technical standards restrictions and anti-dumping laws can play a protective role to a certain extent.

2.2.2.2 Consumption Policy

The formulation of consumption policy is to regulate the market, guide consumption and promote demand. In line with China's national conditions and related to automobile consumption policy mainly refers to automobile sales and automobile tax policy and so on.

a. Auto Sales Financing Policy

Foreign countries, especially western developed countries, in order to cultivate the consumption market of large durable goods, such as the purchase of automobiles, houses, etc., the banks generally provide loans, and the ratio is higher (up to more than 70% of the purchase price). A large part of new car sales abroad is realized through installment payments. Banks lend money to car buyers, users buy cars with loans, car manufacturers can recover all the loans when the car is sold, thus ensuring the normal operation of the funds.

Automobile manufacturers sometimes also take the approach of discount, in fact, with the sale of cars at a discounted price, but in the form of expression is to the bank discount, so that the buyer feels that due to the automobile manufacturers discount so that individuals pay less interest, thus stimulating people's desire to buy a car, and promote the automobile market boom. It is understood that the provisions of foreign installment payment is very detailed, for example, Japan has specifically formulated the "installment sales law".

b. Automobile Tax Policy

Automobile tax policy is one of the important means for a country to control automobile industry and automobile market. Automobile taxes and fees have two main functions, i.e., they have the function of composing and regulating the state's financial revenue. Automobile taxes and fees have a wide variety of names, but basically can be attributed to three stages of taxes and fees.

Automobile purchase stage: the owner of the car in the handling of various formalities to warn the new car legal ownership of the taxes and fees paid. They mainly include VAT, excise duty, purchase tax and registration tax, etc. Such taxes and fees have a direct impact on the demand for automobiles.

Car ownership stage: car owners must pay certain fees, such as car tax, on a monthly or yearly basis as long as they own a car, whether they use it or not. Taxes and fees levied on the ownership stage of the car, initially more out of the daily management of the vehicle business costs of the need for advanced countries to use the graded car tax as an economic lever to achieve the implementation of energy-saving, environmentally friendly requirements of the production and use of vehicles for the purpose.

Automobile use stage: the owner of the car only when the use of automobile costs. For example, fuel tax. According to statistics, there are more than 130 countries and regions have introduced a fuel tax, this tax accounted for the entire life of the car the total cost of taxes ranging from 45% -80%. That is to say, the vast majority of countries and regions will focus on automobile taxes and fees on the use of automobiles. The fundamental idea is to "encourage the purchase and promote the economical use", that is, to limit the unnecessary use. In this way, it is conducive to fostering the market, economic prosperity, and promote the development of the automobile industry, but also conducive to regulating the demand for public transportation, saving resources, and ensuring the construction and maintenance of roads, in order to create a favorable situation for the development of the automobile industry and the construction of transportation facilities. It is reported that the countries in Western Europe from the late 80s, the tax on roads to fuel tax, and respectively, the different quality of fuel to implement different tax rates, in order to encourage the use of low-pollution, high-quality fuel.

Among several countries, including Japan, Switzerland, Italy, Germany, the U.S. and China, the U.S. has the lowest total taxes and fees for all three stages of automobile ownership. China has the highest tax and fee at the stage of automobile purchase, while the tax and fee directly related to the frequency of automobile use accounts for the lowest proportion of the total tax and fee, not more than 10%, which is obviously unscientific and not in line with the objective law. The ratio of taxes and fees directly related to the frequency of automobile use in the other five countries exceeds 45%, and the ratio in Germany is about 75%. In addition, the vast majority of countries and regions in the world in the process of automobile driving no longer collect road, bridge and other fees.

2.2.2.3 Strengthening infrastructure construction

Currently, China's highway construction is still relatively backward, seriously restricting the development of the automobile industry. The world's automobile industry developed countries, none are advanced, smooth highway facilities. For example, the United States highway mileage has reached 6.24 million km, ranking first in the world. Among them, the main national highway highway 90,0009; highway about 90,000tri; highway density of 96fan / 10,000kin2. At present, China is known as the world's most promising automobile market, but the construction of China's highway is a serious impediment to the use of cars. Especially in rural areas, which account for the vast majority of China's population, and especially in remote areas like the west, highway construction is even more backward.

The growing socialization of automobiles and the difficulty of parking in towns and cities, especially big ones, have become as much of a worldwide problem as the difficulty of driving, which is also restricting the growth of the auto market. For a long time, many foreign big cities have been the construction of parking facilities as an important element of urban construction. Nowadays, the mechanical parking garage manufacturing industry in the western developed countries has developed into a complete category, advanced technology industry, a large three-dimensional parking lot can be parked 500-1000 cars, all using computer control, equipped with IC card charging system. The view of foreign experts is that only when the urban area of the public **** parking spaces to reach 15% -20% of motor vehicle ownership, in order to alleviate the problem of parking difficulties. Our country is still far from this standard requirements, in order to solve the development of automobile industry worries, should clear these obstacles as soon as possible.