Can China's Auto Firms Cope with the "China Automobile Theory?"

The “China threat theory” is a common tactic used by the West to curb the development of China. With the continuous development of the Chinese economy and the accelerating pace of integration into the international market, the connotation and extension of this clamor is also constantly expanding. According to media reports, Marcine, CEO of Fiat and Chrysler Group, at the annual seminar on management of the automotive industry in the United States, even threw out the "China threat theory," and said that the competition between Western and Chinese car companies will not be possible. avoid.

There are many reasons why Malchoney has a "threat" for Chinese cars. Subjectively speaking, Fiat and Chrysler are encountering a rare "cold wave" in China. In the first half of this year, the two companies sold less than 15,000 vehicles in China. This is an extremely embarrassing performance for Malchone. It is important to know that China is the world’s largest automotive consumer market and has great potential. If this market is lost in China, it is equivalent to losing the advantage of competing with other companies.

Objectively speaking, in recent years, in the face of the development trend of the domestic and international automotive market and changes in consumer demand, China has not only paid more attention to the development of the automotive industry, but also attached great importance to the construction of independent brands and provided auto manufacturers with independent brands. With strong policy support and environmental support, this has enabled China's auto industry to have a qualitative leap forward in its own brands. According to data provided by relevant parties, at present, the share of independent brands in the domestic automobile market has approached 40%.

Not only that, China’s own brands have also advanced to the international market, showing an unprecedented good momentum. China’s self-owned brands, which are economically and practically market-driven, have been recognized by consumers in many countries. For example, in Brazil, although the top four car makers in terms of market share are Fiat, Volkswagen, GM and Ford, but not long ago, a competition organized by Brazil’s mainstream car media “CARRO” won the Chery QQ from China. In the Brazilian market, 10 entry-level models ranked first in the overall rankings, and a full 16 points higher than the second-ranking Fiat Palio. Another Chinese car, Changhe Edil, was ranked fifth, ahead of Fiat Uno. Can such rapidly formed competitiveness not frighten and worry western car manufacturers?

While expanding into developing countries, Chinese cars are also entering the western developed countries in various ways. SAIC Motor's remanufacturing of the MG brand with 87 years of history in the UK has won wide acclaim in the UK market. At present, MG6 has officially gone offline in the United Kingdom. Last week, China’s private car company, Geely Automobile, and British Manganese Bronze Holdings Co., Ltd. signed an agreement to sell cars to the UK market. Prior to this, Geely had acquired the prestigious Volvo brand, which not only allowed Volvo to turn a profit, but also made Geely into the world's top 500 list.

Obviously, it is the ever-increasing strength of China's auto brands and the “two arrows” of Chinese auto companies in both the domestic and international markets. This has given western car companies unprecedented pressure. The argument of the "China Motor Threat Theory" is definitely not merely the "personal idea" and "exclusive view" of Malchoney, but the common feelings and psychology of many western car companies, and even to some extent Western governments' worries.

In accordance with the relationship between force and reaction force, the Chinese auto industry will bring strong pressure to the Western auto industry, and it will inevitably bring powerful counteractions to its entry into the international market. Malchone’s “Chinese automobile threat theory” is This reaction signal. Next, Chinese cars entering the international market are bound to face greater pressure, the threshold for imports will be artificially elevated, quality inspections and safety inspections will be more stringent, the standards for after-sales service will be higher, and even not rule out The various means of trade protection of Chinese cars will appear frequently.

In order to deal with possible high-intensity competition and more challenging markets, the author hopes that the government can give Chinese car companies strong support and support in policies, resources, information and the use of international rules. In particular, in the use of relevant information, rules, and other aspects, timely dissemination of information that may affect car companies will be conducted to enterprises, and in the event of possible trade disputes, help companies to use international rules, especially the rules of the WTO. Dispute issues.

For Chinese auto companies, they must learn from the lessons that other industry companies rely solely on their labor force to enter the international market and stay at the end of the interest chain. They pay more attention to the improvement of quality and put it on brand building. It would rather produce fewer cars and ensure the stability and reliability of quality. Only in this way can we avoid or reduce trade disputes and eliminate recalls.

It is certain that with the increasing intensity of Chinese cars entering the international market, especially the growing strength of independent brands, the possibility of “carrying out of groups” by Western car companies will increase. In the face of potential Western car companies to hold group defense and resistance, Chinese companies must learn to unite in attack, rather than just go it alone and go it alone. In particular, it is necessary to prevent self-deterrence and price cuts in order to occupy more markets.

From the fact that China's self-owned brand cars have entered the international market in recent years, combined with the requirements of energy conservation and emission reduction, the development of new energy-saving vehicles such as new energy and hybrid fuel and electric vehicles is undoubtedly the new requirement for adapting to the development of the automotive market and occupying the highest point in the automotive market. In this area, the starting point for all countries is similar. Assessing Castle Peak, in time, the Chinese auto industry will certainly be able to form a truly strong international competitiveness.

(Author: Zhenjiang City, Jiangsu Province, State-owned Assets Supervision and Administration Commission)