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At the 2011 Beijing Bus Show held recently, the passenger car companies affiliated to the China National Automobile Group attracted much attention. FAW buses and Sinotruk HOWO buses all bring their advantages. Many industry insiders said that the attention of these large auto groups to the passenger car market is conducive to expanding the research and development sector to a certain extent. However, in the market environment where the growth of the passenger car industry is slowing down, the phenomenon that large groups have entered the passenger car industry has been intrigued. .
Group has obvious advantages
From the overall trend, the passenger car market is decelerating in 2011. In the first quarter of 2011, the passenger car industry sold a total of about 47,000 passenger cars, which was an increase of 18% compared to the same period in 2010. However, from the point of view of increase, it has apparently declined compared to 30% in 2010. In particular, as the country began to implement a tight monetary policy at the beginning of the year and repeatedly raised the bank deposit reserve ratio, the purchasing power of public transport companies has dropped, and bus sales have also begun to decline. In addition, sales of all major bus companies have also declined. In the slower growth environment, large group bus companies still have enough confidence in the market. A bus company official said that confidence in the market comes from relying on the advantages of the group. The passenger car market still has a lot of temptation. Bus companies under large groups want to seize more market share.
In addition, brand influence has also become one of the factors that large groups have settled in the passenger car industry. FAW Bus is a typical example. The person in charge of the FAW Bus Sales Company introduced: "As a pioneer in the Chinese automobile industry, FAW Group is not only leading the industry in trucks and passenger cars, but also wants to increase the development of passenger cars and make them compatible with the FAW brand. In line with the fact that many heavy-duty truck companies are paying attention to the bus industry, I believe there are also reasons for this."
Using group resources as a precursor
Compared with companies that specialize in passenger cars, bus companies with large group backgrounds have group resources that cannot be matched by independent bus companies. How to turn this resource advantage into victory is the most important issue they need to consider. An industry source said that the most critical thing now is to use the company's internal sales network and after-sales service network resources to seize the market and expand market share as a goal. These bus companies should make good use of the resources of the group and take the lead in opening up the market, especially the local market and market segments covered by the group. Through local development and gradual integration, it is more conducive to forming its own sales and service network.
At the same time, these bus companies also have to use the cost advantages of large groups. Many large groups are also manufacturing trucks and other models such as trucks. This can not only achieve the sharing of resources for engine assemblies such as engines and transmissions, reduce production costs, but also enable sharing of technologies, service for passenger cars, and reduction of costs in management and scientific research. 
Taking FAW Bus as an example, in the production process, FAW-bus has borrowed the technical features of Liberation J6 in certain aspects. In addition, large group bus companies should also accelerate the pace of development by exerting the Group's brand influence. In some areas, bus companies may borrow group resources to acquire some local small businesses, expand production and sales, and open local markets.
Make up for professional weaknesses as the core
Regardless of whether it is an expert in the industry or a related person in a passenger car company, it is emphasized that the development of core technology is the key to the current market. For big group bus companies, not only to build, develop core technologies, but also to improve the professionalism of production buses as an important task.
Compensating professional disadvantages and developing core technologies are the most urgent tasks for these bus companies. To make up for professional disadvantages, we must also increase the flexibility of passenger car production. As a company that produces both passenger cars and other commercial vehicle types, passenger cars are generally not valued. For example, although China National Heavy Duty Truck is very much focused on the passenger car market, its annual sales volume is not high, and its development focus is still on heavy trucks. Similarly, Valin, Hualing began to enter the passenger car industry in 2010, but Valin executives had made it clear that the focus of research and development and production is still trucks. This may make passenger car development passive. Therefore, if we want to break the market structure, we must be more flexible in terms of mechanism, and we must develop and produce according to the characteristics of the bus industry, and form our own brand characteristics. From FAW passenger trains, we also learned that companies have made CNG buses and pure electric buses the focus of current research and development and hope to make breakthroughs in new energy technologies. 
In addition, in terms of management, procurement, and after-sales services, bus companies of large groups should also be able to distinguish themselves from other commercial vehicle companies of the group as far as possible according to market demand. Simply put, it is like a bus company, not just a bus manufacturer.
Rational planning market is key
There are also people in the industry who are worried about the phenomenon that large auto groups have stationed in the passenger car industry one after another. They think that this phenomenon is not good and is not conducive to the development of the passenger car industry. Blindly seizing the passenger car market is an irrational performance. At present, the capacity of the passenger car market has not been large. Take large passenger cars as an example, only the “three dragons and one pass†accounted for more than 50% of the market share. Dozens of companies compete in this small market and the passenger car market has become the Red Sea.
Moreover, many large groups basically start from scratch on the passenger car side, and it is difficult to establish advantages in research and development, production, sales, and service in a short period of time. From the point of view of production and sales for the whole year of 2010, the bus occupancy rate of bus companies under the big group is relatively low, and the highest ranking FAW passengers are only ranked No.12; in the medium bus market, except for the Changan passenger car sales of the Changan Group. Not bad, other companies are in a downturn. In addition, because the bus companies subordinate to large groups do not have strong brand influence, and the user awareness is not high, it is difficult to break through in the bidding process of buses and coaches in a short time.
Although it is not easy, but if we can treat it rationally and identify the location, bus companies of large groups can still make a difference. Do a good job of research in the market segments, and at the same time, make rational plans for production and sales. Large group bus companies may use the group's resource advantages to establish and consolidate market positions.