Recreating the self-owned brand of parts and components industry to change "mushroom" to "big tree"

Compared with the reduction of purchase tax, the state's statement on "developing self-owned brand cars and accelerating the establishment of auto and auto parts export bases" in the national revitalization automobile industry plan is not conspicuous. But it is precisely these short two sentences that imply for more than a decade of information.

According to Guo Junfeng, a veteran of the automotive industry, the strategy of supporting independent brands and supporting independent innovation and new sources is a key part of long-term industrial upgrading. It can promote the revolutionary changes in the Chinese automobile industry in the next 10 years. “This is the rejuvenation of the automotive industry. The most central and critical part of planning."

"Mushroom" finally grows into a tree

"Two contracts were signed with foreign investors. The first was the introduction of technology, and the second was the production in China," said a head of China National Heavy Duty Truck.

It is China's long-term development policy to regard the auto industry as a pillar industry of the country. However, due to the lack of support from the spare parts and raw material industries, local auto companies have developed slowly. In order to acquire technology as soon as possible and realize the rapid development of local automobiles, there was a wave of the introduction of foreign capital.

“The reason why the emphasis is on production in China is to establish the basis for the processing of parts and components and the processing of raw materials for complete vehicles in China. Otherwise, China’s auto business is just an air penthouse and cannot form local manufacturing and R&D capabilities.” Indicated.

In 2000, more than a decade after foreign investment in China, Chinese domestic auto companies have mushroomed. Thanks to Shanghai Volkswagen, FAW-Volkswagen and a number of joint ventures supporting parts and components companies, Chery (parameter configuration), Geely and Brilliance also began the process of independent car repair. After the start of the period from 2000 to 2003, China’s own-brand automobile lineup has grown, it has begun to take a certain share in the domestic auto market, and it has begun to export overseas, which has a greater impact on the Chinese auto industry. In 2007, these auto brands that had been described as “mushrooms growing in foreign soil” had a market share of 30.2%, surpassing Japanese cars as the largest force in the Chinese auto market.

Component Base Reengineering

"The outstanding problem for self-owned brand companies is plagiarism and lack of independent innovation." Li Yi, an industry insider, said. Due to the long-term plagiarism of foreign-invested cars, the so-called “research and development” involved the assembly of purchased parts into the vehicle body, resulting in unstable product quality and the resulting lack of independent innovation capabilities and technology accumulation. More importantly, the independent brand enterprises did not develop large-area in-system suppliers with R&D capabilities in this round of development. The core components such as engines are still more dependent on Japanese companies.

With regard to the backward status of China's domestic auto parts companies, independent brand auto companies also have an irresponsible responsibility. This also allows independent brand companies to focus on low-end models in the field of low-cost competition, and in the end we did not achieve a good accumulation.

However, an old employee of CNHTC believes: “Automobile R&D relies on the industrial base in the environment. If the quality of raw materials and the processing technology of foundry and workpieces cannot keep up, many good innovations and designs cannot be verified by tests, let alone conversion. It's a reality."

Because of this, Guo Junfeng proposed that the state supports auto manufacturers to develop their own brands and accelerate the construction of auto and auto parts export bases. This is an important plan that has a revolutionary impact on the Chinese auto industry process.

On September 5, 2008, the Ministry of Commerce and the National Development and Reform Commission issued the "Administrative Measures on the National Automobile and Component Export Base (Trial)".

At the time of issuing the notice, two batches of auto and auto parts export bases had been approved. Eight cities including Changchun, Chongqing, Taizhou, Shanghai and Wuhan became the first batch of export bases. Among them, Shanghai Auto and Parts Export Base was unveiled in June 2008. There are 14 Fortune 500 investment companies in the park, and 7 of the top 10 auto parts companies in the world. The products not only support the domestic vehicle manufacturing enterprises, but also support many foreign brands such as U.S. General Motors, Japan Toyota Motors, and German Mercedes-Benz. This is what the Ministry of Commerce and the National Development and Reform Commission hope to see.

One event that can peep into the country's goal of vigorously developing its export base for automobiles and parts is that in 2006, Guangzhou City, which had good automotive industry technology, failed to win the bid. The reason is that the Japanese brands in Guangzhou have always occupied a dominant position, which is contrary to the original intention of the state to encourage the development of independent brands.

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