The second wave of independent brand exports fills in the international low-end market

The relevant export supervision measures to be issued by the relevant state agencies will make the export situation of the self-owned brands that are in full swing more orderly.

On September 9, the official website of the Ministry of Commerce stated on the official website: Automobile and motorcycle manufacturers that apply for export qualifications should be included in the “Vehicle Production Enterprises and Products Bulletin” of the Ministry of Industry and Information Technology and have effective national mandatory product certification ( CCC certification). In addition, manufacturers of all product categories must have the ability to maintain repair services that are compatible with export holdings.

The notice pointed out that since next year, the Ministry of Commerce, the Ministry of Industry and Information Technology, the General Administration of Customs, the General Administration of Quality Supervision, Inspection and Quarantine, and the State Administration for National Inspection and Quarantine Commission will jointly review the status of overseas sales and repair service outlets reported by production companies and the scale of their exports. Export management of production enterprises is subject to classification management. For enterprises that have major export quality problems in foreign countries and have major adverse effects on China's exports, the most stringent measures taken by relevant departments are to cancel their eligibility for export.

“We also hope that the country can regulate the export market, which will promote the orderly development of overseas markets, and help Chinese companies collectively establish brands overseas.” MAXUS Chase Pan Pan, manager of foreign affairs, said in an interview.

According to Yang Aiguo, the deputy secretary-general of the China Automobile Association Chamber of Commerce, it is clear that “deliberating punitive measures on deliberately disrupting the export market, vicious price competition, and extremely irresponsible businesses will help safeguard the overall image of Chinese products.”

Lessons learned from the first wave According to statistics from auto manufacturers of automakers in the first half of the year, a total of 488,900 autos were exported in China during the first half of the year, an increase of 28% year-on-year. China's total auto exports are expected to exceed one million units this year, a year-on-year increase of 27.48. %; exports are expected to reach 17.472 billion US dollars, an increase of 59.37% over the previous year. Once again achieved high growth in exports, the industry generally believe that the domestic brand passenger cars usher in the second wave of exports.

China's own-brand passenger car companies started exporting in 2001 and reached the peak of export in 2008. In 2008, more than 300,000 passenger vehicles were exported, but due to the global financial crisis, in 2009, Chinese passenger vehicle companies collectively shrank almost half of the overseas market. In 2009, the export volume of passenger cars was 146,600, a year-on-year drop of 57%.

Experts have attributed the loss of the first wave of overseas exports to China’s own brand selling only cars without brand. “Chinese auto companies only knew that they had sold their cars at the initial stage. They simply didn’t know that they had to provide services or understand foreign laws and operating rules,” said Wang Hua, head of the China Marseille Business School in France.

"Chery began exporting in 2001. At that time, there was only one trade department. The idea was very simple, that is, the car was to be sold out," said Wang Mo, general manager of Chery Overseas Investment Co., Ltd., also frankly.

"After the financial crisis in 2009, Chery began to reflect on the situation. In 2010, Wang Rui began to re-evaluate its export business." Wang Mo said that in some markets that have achieved a certain market capacity, Chery gradually changed its strategy and will go out of its strategy and adjust it to take Into the strategy, began to consider how to continue to develop in overseas markets.

Shi Qingke, deputy general manager of the Great Wall Motors International Vehicles Business Unit, also stated that “Great Wall Motors has spontaneously embarked on the planning of the overall brand development of Chinese cars. In addition to developing CKD and SKD plants overseas, Great Wall Motor Co., Ltd. requires dealers to make Great Wall products. There is a franchise store.

“Most of China’s own-brand auto companies have not simply sold their cars, but have actually penetrated into overseas markets, built CKD and SKD factories locally, and started to focus on building sales networks and after-sales service systems, hoping to be in overseas markets. Establish a brand," said Shen Jun, vice president of Roland Berger Greater China.

In Iran, Chery has established its own car brand and has achieved sales of 50,000 vehicles a year. Geely has also become a local "car" in the Ukrainian market, with a share of 75%. The Great Wall has also had sales in more than 100 countries and markets.

Filling the gaps in the international low-end market In recent years, independent brands have devoted much effort to improving product quality. After entering the non-developed regions such as the Middle East, Latin America, Russia, the Middle East, and North Africa, some leading export companies have begun to explore ways to enter the developed countries.

The SAIC Group MG has already achieved a listing ceremony in the UK, and MAXUS Chase has also landed in the Australian market. FAW has established and joint ventures in Mexico. The Bulgarian plant that was opened in February this year has allowed Great Wall Motor to produce cars in the European Union for the first time.

“Australia and Chile are relatively high-end markets. Entering these markets is equivalent to entering the frontier of Europe.” Pan Pan, senior manager of MAXUS Chase Overseas, told reporters that the two markets are implementing the same collision laws as in Europe. Once they are recognized, they will enter. The European market only needs product upgrades.

Mexico is part of the North American Free Trade Area. Products produced in Mexico are licensed and can enter the North American market directly. The positioning of the Great Wall Bulgaria factory is to become a supply base for cars and SUVs sold in the European market. This year the company is expected to achieve a production and sales scale of 3,000 cars.

For the improvement of self-owned brand's capabilities, Zeng Zhiling, chief researcher of automotive market at LDC Automotive (formerly JD Power) in the Asia-Pacific region, said: “This is mainly due to the continuous improvement of China’s auto quality and technology levels in recent years. After the wave's success, it is likely to replace the Korean car and become a good complement to the low-end market in the world.

However, in the process of entering the world market, Chinese cars still face some urgent problems to be solved. First, there is still no comprehensive understanding of the policies of some countries. Last month, Chery Automobile and Great Wall Motors encountered the "asbestos gate" in Australia.

“Australia has been completely banned in 2004, and asbestos has been banned in developed countries such as Europe and the United States. This actually reflects the fact that China’s passenger car companies have not conducted thorough research on the laws and regulations of the place of export.” said Zhou Fangyu, a consultant with PAC. .

In addition, it is difficult for Chinese companies to fully anticipate the ever-changing international market. For example, on September 15 last year, the Brazilian government suddenly announced a new tax policy for the automotive industry, resulting in a 25% to 28% increase in the cost of imported cars in the Brazilian market, which directly led to the inability of Chinese companies to compete on the local market. Affected by this, the construction of JAC's vehicle factory in Brazil has stopped.

At the same time, Chinese companies still win prices mainly in foreign countries. "In many countries, they are the competition between China's independent brands, and they have defeated themselves." Shen Jun said in the end that vicious competition will result in lower overall corporate profits. Damaged brand image is not conducive to international sustainable development.

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