Planning - China's auto industry has exposed four major problems


Xinhuanet Nanning, November 28 (Reporters Liu Chunhui, Liu Yuanyuan) Yang Hexiang, Director of the Industrial Research Office of the Institute of Industrial Development of the National Development and Reform Commission’s Institute of Macroeconomics recently pointed out at the “2005 Liuzhou Forum” that although China’s auto industry is at a high speed of production and sales, The period of prosperous growth has exposed four major problems: the overheated auto industry, weak development capacity, scattered industries, and inadequate supporting facilities.

Yang Hexiang believes that the rapid development of the automobile industry in China temporarily overshadow the impact brought by the accession to the WTO to the domestic auto market. However, this does not mean that there will be no contradictions and problems in the auto industry and the market in China. Instead, four major problems have been exposed.

·The auto industry is overheated. There is an investment bubble.

First of all, the auto industry is overheated and there is an investment bubble in supply. At present, 27 provinces and cities across the country have begun to develop and produce automobiles. There are 21 provinces and cities producing cars and a total of 2443 automobile companies, including 115 vehicle manufacturers, 551 conversion plants, 154 motorcycle factories, and 56 engine manufacturers. There are 1567 automotive and motorcycle parts factories and 168 related supporting industries.

Yang Hexiang said that the current total vehicle production capacity in China is about 5.5 million, and the total production capacity in 2007 is expected to exceed 15 million. At this time, the national vehicle production capacity will greatly exceed the market demand.

If calculated according to the annual growth rate of 10% proposed by the relevant departments, this year's automobile production and sales will reach 5.5 million, and in 2010 it will reach 9 million. If there is no restriction on investment, the automobile production capacity at the end of the “Eleventh Five-Year Plan” period can reach about 20 million vehicles, which is more than double the actual demand. Therefore, during the "11th Five-Year Plan" period, the country will give full play to the advantages of market allocation of resources, enhance macro-control and policy-oriented role, and curb low-level redundant construction.

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· Weak development capacity Imported imitation and more independent intellectual property rights Less dependent on foreign capital

Second, weak development capabilities, the introduction of more imitation, less independent intellectual property rights, strong dependence on foreign capital. The domestic car market is dominated by foreign brands. In the development of automotive products in 2002, China's self-developed new products accounted for 32% of the new varieties, of which cars accounted for 10.5%. Most of the new cars are based on technology introduction and joint venture development.

Technically speaking, the Chinese automobile industry is essentially an assembly shop for automobile powers and the world’s auto giants. The auto market is dominated and operated by multinational giants. We rely on the “sell market” to attract the world's auto giants to enter China.

China's self-owned brand cars are very similar to domestic mobile phone companies. Without core technology and low prices, companies are expanding on the basis of low efficiency. From the perspective of market share, cars with independent brands are far from being recognized by the people like mobile phones.

Four Shortcuts for China's Auto "Autonomy"

For Chinese auto companies, they would have been relatively thin. Therefore, while the Chinese auto industry is increasing its R&D investment, it also needs to increase the efficiency of R&D investment and achieve low-cost independent innovation.

Three major differences in domestic and foreign automotive R&D

Although China’s investment in R&D expenditures has continued to increase in recent years, the R&D funding ratio in China in 2004 was only 0.63%, far lower than the world’s average of 2.62%. In the United States, the figure is 3.98% and Japan is 3.64%. Although South Korea has a relatively small proportion of investment, it has also reached 1.70%. Judging from the R&D expenditure, the world average is 2.642 billion U.S. dollars, while China’s investment is only 132 million U.S. dollars. If the average individual, China's R & D funds are less than 1 US dollar per person, while Japan's R & D funding per person is as high as 1170.5 US dollars.

Special plan: China's auto research and development

·Industry scattered Industrial chain short Small scale High cost

In addition, the industry is scattered, the industrial chain is short, the scale is small, and the cost is high. The supporting capabilities of China's auto industry are weak, and there are still a large number of special steels and components that are needed by many automobile joint venture manufacturers in China. Due to the low efficiency of China's railway transportation system, the delivery time of steel and parts transportation is not timely, and it also increases the transportation cost and inventory cost of the company.

Due to the import of raw materials and parts, low efficiency of transportation and small-scale production, the cost of producing a car in China is currently about 18% higher than that of industrialized countries.

· November auto market price reduction information The luxury car market is fierce. The old Buick Rongyu fell below 400,000. Concessions continue to increase. Elantra bare car is less than RMB 100,000.

The concession rate continues to increase Sonata approaching 130,000 yuan

Chevrolet King's promotion at the end of the year's largest discount more than 20,000 yuan hatchback price reduction boom fit the entire Department of the largest concessions nearly ten million old models also fight the price of Beverly's highest discount of 9,000 yuan chart sales lead to preferential increase Tianhe price cuts nearly 30,000 yuan Charts can not escape the price storm storm listing 3 months offer has reached 4,000 yuan map old models Audi A4 price 50,000 delisting price of 29.99 million -38.99 million 1.8L Bora buyout sales price innovation lower than the guide price low rate of nearly 3 Millions of luxury imported cars, price cuts, a variety of imported Mercedes-Benz fell below 500,000, 03 models sedan POLO inventory, low-cost promotions up to 26,000 yuan

· Automotive consumption and use environment is facing major challenges

Finally, the automotive consumer environment faces major challenges. The traffic jams and serious shortage of parking berths in large and medium-sized cities are also constraining the development of the automobile industry. Concerns about high oil prices and the lag in financial services for auto consumption will severely curb potential consumption.

Impact of rising oil prices


People

Gasoline price rise owners pain

A netizen posted a message "Where is it more cost-effective to taxi and buy a car?" Expressing its grief and indignation, "Since buying this car, it has caught up with gasoline prices three times and has seen oil No. 97 from 3.2 yuan/liter. 3.9 yuan per liter. Each time at the gas station, watching the amount of money on the display beating, my heart rate will also accelerate." The netizen seems to accidentally write a wrong data, in fact, after the 25th price adjustment, The No. 97 gasoline sold in the Beijing market has risen to RMB 4.21 per liter.

industry

The days of many oil consumption listed companies are not so good. For example, the negative impact on the road transport industry, air transport industry, and automobile manufacturing industry is relatively large. The impact of rising oil prices on airlines is undoubtedly fatal. Since last year, the international oil price has reached a record high, and major domestic airlines have also been affected by the crude oil crisis. The performance has plummeted. Institutional investors have also collectively reduced the holdings of three major aviation giants: Eastern Airlines, China Southern Airlines and Shanghai Airlines.

Who will bear the brunt? Who else will increase the cost? Who is losing profits? The rise in oil prices has had a greater impact on some related industries...

Planning: How much oil can a "small displacement" car save?



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