Innovation and Service: The Path to Transformation for Chinese Automotive Industry

The cloud of transformation has been firmly enveloped in the automotive industry in China. At the "2011 Global Automobile Forum", leaders from several development departments such as the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Commerce and senior executives of major auto companies have frankly stated that the Chinese automobile industry is in a predicament and that it has proposed a method for breaking the subject.

With the slowdown in the growth of China's auto sales, the Chinese auto industry began to reflect. Zhang Xiangmu, Director of the Department of Equipment of the Ministry of Industry and Information Technology of the People's Republic of China, asked: "Recalling that China's automobile industry has been driven by vigorous market demand for decades, and it has been able to obtain great development by relying on joint ventures and cooperation to learn advanced foreign technology and management experience. Under the new situation, can this path not be allowed to continue?” According to Zhang Xiangmu, along the old road of the past, the transition from a big producer country to an innovative country cannot be realized. In the future, it is necessary to change the development concept and innovate the development model.

Wang Xia, president of the China International Council for the Promotion of International Trade and Automobile Industry, proposed: “I hope that the Chinese auto industry can pass the innovation of products, the innovation of values, the innovation of management systems, the innovation of the entire value chain, and finally respond calmly to challenges. Even the shortest possible In the course of time, some multinational corporations with tenacious vitality are created through competition.” When the outside world only emphasizes integrated innovation, Zhang Xiangmu’s banner clearly states: “Integrated innovation is an innovation, and our country’s independent innovation is originally said to be three aspects. It is original innovation, one is integrated innovation, and the other is introduction, digestion, absorption and innovation."

When talking about the road to the problem, the industry has turned its attention to the policy and the company itself. Zhou Yongjiang, the deputy chief engineer of FAW Group, said, “Although there is not yet an open "12th Five-Year Plan" for cars, I don't think that this means that cars don't have any special plans, and it may be better to say that the car's special plan will Focusing on the theme of being a major automobile country and an automobile innovation country, even a more specific, more detailed, scientific, and strategic plan will be proposed.” Zhang Xiangmu proposed that the Chinese auto industry must strive to break the technological bottleneck and realize The research and development of key technologies, and the formation of continuous innovation capabilities, has mastered a number of key technologies that have led the world in automotive development. To formulate new measures for energy-saving vehicles, it is necessary to formulate regulations for the management of energy-saving vehicles and to issue automobile plans including new energy vehicles.

The integration of the automotive industry has also become an important way to solve the problem. Wang Xia pointed out that in the era of rapid growth, the management of the Chinese automobile industry has been overshadowed. In fact, the market cannot accommodate so many businesses. In addition, from the international practice, the automotive industry needs to be integrated. Zuo Yanan, chairman of JAC, told the reporter: “The globalization of market resources is the law of the market. Only if resources are allocated properly can we achieve healthy and orderly development of an industry and a company.”

FAW Group, in combination with itself, will set its sights on the automotive service industry. Zhou Yongjiang told reporters: “The Chinese auto industry should not only make profits in one-way manufacturing, but also must make profits to the entire supply chain, especially the service industry.” Zhou Yongjiang gave two reasons: First, the profit obtained from production alone is Single, and manufacturing profits are declining. In 2005, there were only about 180 new cars on the Chinese market, and in 2010, more than 400 cars appeared on the Chinese market. With more and more new products, shorter and shorter product life cycles, product prices have been declining, and manufacturing profits have been continuously compressed; second, the profitability and space of service industries in terms of both Chinese and overseas markets. Are relatively large. In China, the profits of the service industry are constantly rising.