Is the spring of our own brand car coming?


At the beginning of this year, the media has positioned itself as an “independent brand year” in 2006 in the face of the excellent performance of its own brand collectives.

In the square of independent brand cars, Xiali, Geely, Chery, Great Wall, BYD, and Brilliance all performed well. Statistics from the National Information Center show that in the first half of this year, China's self-owned brand car companies have a rapid development momentum, leading the 36.3% growth rate of the joint venture with a growth rate of 51.3%, and the market share of self-owned brand cars is close to 25%.

In the first seven months of the year, Chery was among the top four, with China FAW Xiali and Geely ranked eighth and ninth respectively; in the saloon sales rankings, Xiali topped 103,100, Chery QQ Qiuyun ranked sixth and ninth respectively with 72,300 vehicles and 58,82 vehicles.

In August of this year, most of the Ministry of Commerce’s automotive auto parts and components export base and base company awarding ceremony were self-owned brands. With all this performance, it seems that the spring of independent brand cars is coming to us.

The rapid growth of self-owned brand cars in China quickly attracted the attention of foreign media. The New York Times wrote, “Whether it is the Great Lakes region of the US or Germany, the veteran industrial area should pay attention to this: Chinese cars come It!"

Yes, Chinese cars are coming. It is clear that after several years of market baptism, China's own brand cars have already found their own direction, and they are constantly working in this direction, although the road ahead is not easy.

Awakening of independent brand cars

The birth date of China’s first self-owned brand car should be on July 15, 1956, when the liberation of the brand truck was officially completed. However, in the decades that followed, China’s autonomous road had not expanded much. It was not until the late 1990s that self-owned brand cars began to awaken.

Whether it is Geely, Chery, Xiali, or Brilliance's road to building a vehicle, from the original to the innovation, and then to the absorption, the road to innovation is very similar. Soon their products have become wings in the containment of major joint venture brands due to their attractive price/performance ratio. A few years later, their products gradually gained market recognition and began to compete against joint venture products.

From January to July this year, Xiali’s sales topped the list, sales of Huachen Junjie and BYD F3 were also very good, and Chery's overall sales also followed the top three. FAW, SAIC, and Dongfeng's own-brand cars have also gradually exerted their strength. On August 18, the Pentium mid-to-high-class car, Pentium, will be listed on the market. In mid-September, the economic car Weizhi will also be listed; SAIC's own-brand mid- to high-end cars will be listed at the end of the year; Dongfeng's own-brand car project is also in full swing.

The good news is enough to make people feel confident. Even more gratifying is that the self-owned brand car companies that used to imitate the start have made breakthroughs in core technologies one after another in recent years. Chery's ACTECO 2.0-liter engine, Brilliance 1.8T engine, Geely CVVT engine and Great Wall high-pressure common-rail diesel engine have been mass-produced in succession, and the self-owned brand sedan has entered the “China Core” era. In addition, Geely's automatic transmission has been loaded; Chery's two automatic transmissions have been designed to enter the follow-up test verification phase. In the field of car platforms, Chery, Changan, Geely, Hafei and other companies are also making breakthroughs.

National policy support

The “Development Policy for Automobile Industry” issued on June 1, 2004 clearly stated that it is necessary to vigorously develop its own brand. The National Science and Technology Conference held in 2006 defined independent innovation as a national policy. The upcoming "Eleventh Five-Year Plan" of the automotive industry will be targeted. The large auto group must have the platform and assembly R&D capabilities of its own products; the backbone enterprises must have the matching capabilities of the body, powertrain and chassis. The parts and components companies must master the core technologies of the main powertrain and key components, and have the capability of simultaneous research and development of the platform. Relevant departments have also introduced policies in areas such as technological innovation and government procurement to encourage the development of self-owned brand cars.

Shang Xiaoting, director of the government agency's government procurement center, said that at present, government agencies' centralized procurement has already implemented a bonus policy for self-owned brand cars during the bidding process. Last year, the five major models of Chery Automobile were included in the list of central government procurement, and more autonomous national brand cars will receive policy support in the future.

The relevant person in charge of the Ministry of Commerce also stated that after the official announcement of the first batch of national auto and auto parts export bases and enterprise lists, the state is formulating relevant policies to promote the export and standardization of auto and auto parts exports, and provide better services for the majority of export enterprises. service.

Quality and Technology Challenges

Although there are so many good news and support from national policies, there are still many problems that need to be faced with growing independent brands.

From the product structure, the independent brands are generally within the range of 100,000 yuan, the main competitive advantage is the price, but despite a few years of growth, there is still a certain gap between product quality and after-sales service. A consumer who purchased a self-owned brand vehicle once said to the author: “I bought a car for the sake of opening, not for repairing.”

Nowadays, the prices of raw materials such as steel and fuel continue to rise. Independent brands that win the market with low profit still do not have enough strength to compete with large joint venture brands. The latter models still have relatively large price space. From this point of view, the self-owned brand cars that have continued to cut prices have not actually become rivals to the joint venture brands, and they can only steal customers from other independent brands through price measures, failing to make the real opponents hurt.

Technically, although individual companies have made breakthroughs in core technologies such as car engines, gearboxes, and chassis, more companies still rely on “taken”. As for automotive ABS, airbags, engine EFI systems, car active safety systems and other sophisticated automotive electronics, we have not yet achieved a breakthrough. At the same time, major foreign brands have long been involved in future technology fields such as hybrid power and hydrogen fuel cells, and safety technology is also very mature.

Where is the spring of self-owned brand?

The exuberant vitality possessed by independent brands cannot be ignored. Although there are many shortcomings, but like small fleets, they have keen market insights and flexible product adjustment capabilities. When consumers' tastes and needs change, they can Make changes now. The same is true in rectifying the shortcomings. Once there was an independent brand collecting complaints from car owners, which was modified little by little. It quickly reduced the car's minor problems and improved the product's reliability.

Accurate product positioning has brought great opportunities for independent brands. Manufacturing a national car can be said to be a site where independent brands must hold. In my opinion, the National Vehicle has several characteristics: the price, small displacement, and high quality of the people-friendly, and this part of the population accounts for half of the Chinese auto consumption group. As the price of oil rises, this part of the potential population will gradually increase. According to an online survey, it is expected that the potential users who purchase cars with funds from 100,000 to 150,000 yuan will have the highest percentage of self-owned brands, while those less than 50,000 yuan will also use their own brands. Obviously, now this country has taken more than half of its own brand, and the next thing to do is how to consolidate the country, and then free up hands to do other developments!

Policy support is also an important part of giving spring brands an independent atmosphere. "The self-owned brand cars will exceed 30% market share in a very short period of time and will continue to grow in the future." Zhang Xiaoji, vice president of the China Machinery Industry Federation, believes that China has the world's most promising automotive market. The country is also building a fair competition market environment and a good atmosphere for actively using its own brand cars. As long as it is unswervingly and scientifically pragmatically taking the path of independent innovation, the road for independent brands of cars in China will surely become wider and wider. ”



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