China's auto industry enters the phase of conscious restructuring and integration


The rapid growth of the Chinese auto market this year is a foregone conclusion, and it is beyond doubt that we can continue to grow in the next year. This is because the major factors affecting the current market trend are not short-term behaviors, and they can be good for the market over a longer period of time. Judging from the current situation, after China's accession to the WTO, the Chinese auto industry is realizing the economies of scale it had hoped for. The auto industry has entered a period of conscious reorganization and consolidation, and large-scale mergers and acquisitions are surging.

However, it can be expected that the Chinese automobile industry will not exhibit the highly concentrated market structure of the United States. Zhang Lujun, consulting advisor of CCID Consulting, said that China’s automobile industry will maintain the Warring States status for a long time to come, which is complicated by China’s Diverse market demands and industry management systems with Chinese characteristics are determined.

At present, China's existing small and medium car manufacturers may not only survive in the seemingly tragic industry consolidation, but may also thrive. Zhang Lujun analyzed: "Simply put, the way out for small manufacturers is roughly the following: first, the big money; second, a fingernail; third, the umbrella."

There are two ways to entertain wealthy people. One is to actively or passively participate in the global division of labor, and enter the global automobile industry network through foreign-invested shares, such as Changan Ford, etc. Under the trees, it is a good opportunity to get cool, and to obtain technology, brands, and funds. However, foreign giants have higher requirements for cooperation partners, and some manufacturers may find it difficult to climb high branches. The other is the closest alliance, to find a domestic boss or second child, after all, most of the industry companies are state property, the government said how to integrate how to integrate, in particular around the three major auto industry group acquisitions and mergers and acquisitions by the government Strong support. SAIC acquired Yizheng and reorganized Liuzhou Wuling; Dongfeng also participated in Yueda Kia; FAW has already acquired Jinbei, won Qingdao Yuzhong Automobile, and held Tianqi.

One finger meditation is to say that practicing is a smashing stunt. "With your helplessness, I will welcome you from a cone." Small manufacturers can specialize in market segments. They can also fight price wars or create perfect services. The price war now seems to be the weapon of many manufacturers, but I am afraid that in the long run, it will not only reduce the lethality, but also lead to fire. The Chinese market is huge and the demand is diverse. The transformation of the Chinese automobile industry is accelerating, and more and more models have been launched. The small and medium-sized car factory can do its best to create a local market boutique through market segmentation and gain a place. Small manufacturers rely on the diversity of the huge market demand, picking up some corners to eat, and can also reach a well-off.

In addition, the auto market is booming, and local governments have been optimistic about the auto industry. No less than 20 provinces and cities nationwide have supported the automobile as a pillar industry. This is the umbrella. After China's accession to the WTO, the Chinese government has fulfilled its WTO commitments and will gradually eliminate tariff barriers and non-tariff barriers for the long-term protected automobile industry. However, a certain degree of protection will exist, and local governments have sufficient reasons not to enforce the WTO provisions. It can't be sunk if you can seek to protect the umbrella at least in the short term. Land unpaid, tax relief, market protection, with these, I am afraid it is difficult to make money. This situation is not uncommon. Although it is not worth promoting, it can be considered as a way of life.

At present, there are only 36 listed companies in the Chinese auto industry, and there are many industries outside the capital waiting in the wings. “The colorful is the spring.” Mergers and acquisitions integration not only promotes the competitiveness of China's auto industry, but also contains unlimited opportunities.


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