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Survival of the fittest after 10 years, which brands survive
Date:2013/10/15

Recently publicized public service vehicle procurement catalog, the draft will once again push their own brands to the cusp. With the "two sessions" held, the topic of independent brands and independent innovation will become the industry's most concerned about the content. In response to this topic, China Automobile Industry Association executive vice president and Secretary General Dong Yang recently said that China's auto industry can become strong, but it will take 10 years.

"What are the signs of becoming a car power?" First, we must have world-class enterprises and first-class brands; second, we should be able to lead the world automobile technology development trend; third, we should open up two markets both at home and abroad." Dong Yang believes that after 30 years of joint venture, China automobile has the ability of independent development, however, due to funding, technology and other aspects of the gap, the independent brand is still hard to keep up with the joint venture brand pace, and the worse the more trend. These are objective facts. Beginning last year, the author in the interview process, more than once heard the independent brand car enterprise Mister in "complain" difficult, is everyone consistent feeling. Last year, FAW, SAIC and Dongfeng, Changan, Guangzhou and Beijing and other large enterprise groups, only SAIC Roewe brand and sales are just passable; while in Chery, Geely, BYD and JAC, the Great Wall and other independent car prices, Geely and the Great Wall is only passable, other brands such as Chery, dragged down by more than brand strategy basic quietly; "the bright younger generation" BYD, last year is continuously encountered, Huanshuai storm resignation, a substantial decline in sales. As the overall market performance is weak, coupled with various external adverse factors, it has been a hot topic in the media and the industry that how to get out of the development dilemma of independent brands. This year, the policy level to good, especially the official vehicle procurement catalogue is a shot in the arm for independent brand. But the author also believes that, from another point of view, this is also a smoke bomb. Because, in the current market competition situation, it is almost impossible to save the independent brand with the hope of policy factors. In the long run, independent brands must follow the rules of survival and undergo a process of merger and reorganization and survival of the fittest. Independent brands must also follow the rules of survival, doing business as a person. For thousands of years, people have been thinking about these three questions: "who am I, where am I from, where am I going?"." It is the exploration of the ultimate meaning of human beings that makes us more appreciative of our present existence. These problems apply equally to any enterprise. Only a long-term thinking and planning of the enterprise can make the enterprise more viable and sustainable. Objectively speaking, at present, considering the life and death problems of independent brands, car prices are not many. And such a problem, for the current dilemma in the independent brand car prices, but it is essential, and its importance even comparable to "enter the top four" or "sell 5 million vehicles" this grand goal.

Why should we consider this problem? That is because there are too many automobile brands in China at present. The situation of "scattered", "mess" and "bad" is very serious, and the ineffective production capacity will seriously affect the healthy development of the whole industry. As early as in 2008, the state put forward the "merger and reorganization", and divided the "four big four small", hoping to make bigger and stronger auto companies. However, after so many years, mergers and acquisitions have encountered great resistance, and the whole industry has been unable to improve. The Spring Festival just passed, leaving the "Changhe" incident with vigour and vitality to the industry once again sounded the alarm: the integration of the road is not Everything is going smoothly., have fully prepared to fight for a long time and determination and courage. Coincidentally, almost at the same time, there is another noteworthy thing, that is, JAC Automobile Group Chairman Zuo Yanan suddenly "retired", general manager Amgen took over as chairman. Many industry analysts, the left Yanan in the term of office "retired", or will become Chery restructuring JAC plan to restart the landmark event. Several years ago, the Anhui provincial government is the integration of Chery and Jianghuai Automobile in Anhui province enterprise idea, the state-owned auto group army to form a counterweight to Changan, Beijing and Guangzhou and two echelon, namely "Ta steam" idea. However, the reorganization Jianghuai head left Yanan against the "matchmaker", but the attitude is tough, making the "Ta steam" plan ran aground. At the beginning of the year, however, the sudden retirement in the left Yanan made people realize again that the integration did not stop. From the historical development trend, the independent brand must undergo the reorganization and integration. At present, many independent brands, such as the flying saucer, young lotus, hippocampus, Jiangling, ZTE, Thailand, Liu Qi, Li Fan, public and Southeast, models and small scale, some even only one or two models, in the process of the high-speed development of the Chinese automobile market, they also have a cup of soup. However, with the automobile market competition becomes more intense, or they will be difficult to find a place to live in in the competition process, many brands will also experience mergers and acquisitions. Whether for the automotive industry itself or the industry as a whole, this is not a bad thing, but also a bigger and stronger way. The independent brand survival basic rules and standards issued in February 25 the Ministry of "2012 year government official car selection models directory (Draft)" in the selection of models covering 412 enterprises and 25 models, in addition to Beijing, other independent brand car enterprises have selected models: FAW Group Hongqi Xiali, Roewe, MG, SAIC, Dongfeng Group, Zhengzhou Nissan Fengshen popular and independent brands, Changan group of cars, car and automobile, Guangzhou Automobile Group's have trumpchi.

In addition, Chery, Geely, BYD, the Great Wall, brilliance, hippocampus, all Taihe, Lifan and other enterprises are shortlisted models. This is indeed a cheering event. Since then, we have demonstrated the importance and correctness of the decision from various angles and levels. However, as one of the main drivers of the catalogue, Dong Yang, executive vice president and Secretary General of the China Automobile Industry Association, is not blindly optimistic. He said: "this bus purchase is not to save their own brand for the purpose. First, independent brand car this year although the difficulties, not to have to depend on the government purchase degree; second, is very small, the official car market impact is limited; third, the independent brand production enterprises and therefore don't slacken, efforts should be made to the fourth stage, Liannei Gong; directory tube is the official car, car ordinary communication really, to the role of market orientation is the provincial leadership of the car. In this regard, the independent brand passenger car behind China Secretary General Rao also has the same view. He believes that relying on government procurement to save their own brands is unrealistic, independent brands only hard skills, and solid technology, it is possible to stand out in the competition. At present, many independent brands have not been quiet down to do research and development, and this is not a good phenomenon. Xu Heyi, chairman of Beiqi group, was once pessimistic to point out: "in 10 years, most of the independent brands and a part of joint venture brands may be out."." He believes that in recent years, China's independent brand has encountered new difficulties, some of its own brands appear sales slump, profits and other difficulties, is the development of the road in the past problems and contradictions accumulated long-term results.


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