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Flotation Processing Project
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14 independent companies 13 joint venture brands
In the first five months of this year, the market share of domestic self-owned brand passenger cars has reached 30%, which is an increase from the previous year's 25%, but it is far from the “Eleventh Five-Year Plan for Development of China's Automobile Industryâ€. There is still a 30% gap between the target of increasing the domestic market share of branded passenger vehicles to over 60%. In the next four years, how will the remaining goals be achieved? Which of the many auto companies in China will make their own contribution to their own brands?
14 independent enterprises are the main force
As the founder and producer of most domestic self-owned brands, the 14 major self-owned brand auto companies apparently assumed the most important responsibility in the “Eleventh Five-Year†development plan for the automotive industry.
Through the data, we can see that in the domestic car, the market share of self-owned brand cars has been significantly improved, and the technical level has also kept close to the domestic advanced level. Of the two independent self-owned brand companies, Chery’s accumulated production reached 114,811 units in the first five months, and cumulative sales reached 104,101 units. In the past five months, Geely’s accumulated production reached 88,090 units, and the cumulative sales volume reached 86,883 units, all of which have created historical highs. In terms of emerging companies, BYD has a total production of 26,836 units, and its monthly sales have exceeded 5,000, which is also growing rapidly. In addition, another veteran brand, FAW Xiali, has sold 90,300 vehicles in the first five months of this year, an increase of 10.98% year-on-year, becoming the single best-selling brand.
In terms of domestic SUVs, Great Wall Motor ranked first in 15,000 vehicles and Changfeng Cheetah sales reached 11,600 vehicles. Both have firmly occupied more than a quarter of the SUV market. Driven by these companies, other domestic self-owned brand companies have also begun to increase their production scale. Jiangling Holdings has launched its first self-owned brand MPV fashion this year, and the production capacity of Landwind's 150,000 vehicles will also be Jiangdu Holdings’ biggest playing card in independent innovation. FAW Hongqi demonstrated its new car named “Pentiumâ€. In September this year, it will also release a C-Class HQ3. Class A vehicles are in the process of designing. HQE strives to put into production in 2009 and FAW Red Flag will be produced in 2009. It can produce 300,000 cars of its own brand annually.
Domestic auto groups start to exert their power
In previous self-owned brand cars, consumers would at the same time think of relative terms such as low grades and backward technology. However, with the advancement of domestic auto companies' technology over the past few years, many advanced self-owned brand cars have been listed one after another, and the major companies have also begun to focus on the mid-to-high-end car market and want to compete with the joint venture brands.
Among the high-end products of domestic self-owned brands that are about to go offline, the mid- to high-end cars based on the British Rover platform are also attracting attention. SAIC's own brand will be formally released at the end of the year, which also marks the prelude to SAIC Motor’s efforts to develop its own-brand automobile. From a target point of view, the newly established "SAIC Motor" plans to launch more than 30 models of five platforms including RVs, mid-size cars and compact cars from 2007 to 2010. SAIC CEO Hu Maoyuan said: In 2010, SAIC's own brand production will reach approximately 600,000 vehicles.
On the aspect of NAC, the entire production line of Rover in the UK has been moved to Nanjing. NAC’s first mid- to high-end car MG will also be available on March 27, 2007. The goal is to achieve an annual output of 200,000 vehicles, 25 Million engine size. In addition, GAC, BAIC, and Dongfeng Automobile are also working on the development of their own brands. The more involvement of domestic auto groups in their own brands will reduce the 60% target in 2010.
Most joint venture brands still have no idea
Domestic joint ventures apparently have little interest in self-owned brands, and most of them are still fascinated by the production and sales targets for building joint venture brands. "It is no wonder that foreigners investing in China are to promote their own brands. To put it plainly is to make money.
The joint venture manufacturers' research and development of independent brands that are in line with China's national conditions are obviously contrary to the original intention of foreign manufacturers to invest in China. “The CEO of a joint venture company once said that. Even so, some manufacturers have expressed their dream of developing new cars independently. Beijing Hyundai is one of them.
"The two sides have reached a consensus on the introduction of self-developed models for joint ventures based on the needs of the Chinese market," said Xu Heyi. At present, Beijing Hyundai is undergoing a comprehensive transformation from "indigenous transformation" to "independent design." The R&D center of Beijing Hyundai Second Factory will carry out product research and development to meet the needs of the Chinese market and achieve localized operation of product research and development. In 2008, it will be Beijing Modern's first self-owned brand car time.
