China has become the world's automobile production capacity in the country.


The British automobile magazine AUTOCAR reported that China has become the world's largest car producer and the EU has retreated to second place. China's automobile production already exceeded the EU as early as 2012, reaching 21.9841 million units in 2013, far exceeding the EU's 14.6 million units. China's auto production in 2014 is expected to reach about 24 million vehicles, which will exceed the EU's 10 million vehicles. Compared to the total global vehicle sales of 75.5 million units in 2014, it is almost one-third of the world's total.

In fact, not only the EU, the United States, Japan, and South Korea’s auto production capacity are accelerating their transfer to China. From the perspective of the global auto brand layout disclosed by domestic media in China, by 2015, only GM, Ford, Volkswagen, Mercedes-Benz, BMW, PSA Peugeot Citroen, Fiat, Toyota, Honda, Hyundai, Kia, these European and American companies. It plans to achieve a total capacity of 14.86 million vehicles in China, equivalent to the EU's total sales in previous years.

If we count the production capacity of Land Rover Jaguar and Volvo, the total amount of cars entering China will be even greater. It can be seen that the shift in global auto production capacity to China is strong, and the visual performance is that the joint venture has expanded its scale in all directions in China, such as FAW-Volkswagen's Changchun plant and factories in Foshan, Guangdong, and Chengdu, Sichuan; in addition to the Shanghai Volkswagen Anting plant, Ningbo, Zhejiang, Yizheng, Jiangsu, Urumqi, Xinjiang, and Changsha, Hunan set up branches; Beijing Hyundai is also currently preparing to build the fourth factory.

The transfer of global auto production capacity to China is due to the concentrated release of demand in the Chinese market, which has the highest sales volume and growth rate in the world and is very attractive. The positive effect of this is that the number of employees has increased substantially. The income of employees in the automotive industry has increased significantly. The shift in production capacity has brought about the concentration of technical equipment and human resources to China, which has helped to promote the level of China's auto industry. The competition for production capacity brings about full competition for products, which can allow Chinese consumers to obtain inexpensive and high-quality automotive products and improve the quality of life of automobiles. A large increase in fuel demand will also bring huge profits to oil companies. The profits from joint ventures between domestic companies and foreign companies are also considerable. As a result, the automobile economy has fluctuate in China's real estate industry, and local governments have lost their fundamental economic dependence on land sales finance, which has become a temporary "stabilizer" for China's economy.

However, the more far-reaching goal of China's auto development is to build a powerful automobile country. The world's auto production capacity is concentrated in China, and the production capacity of Chinese self-owned brand companies is also expanding. China's auto production capacity is expected to reach 32 million vehicles in 2015 and it will exceed 40 million units by 2018. However, as China's auto production capacity has increased year by year and profits have been diluted, the future automobile production and sales will enter fierce competition.

It cannot be overlooked that the Chinese automobile industry is big but not strong. After a number of global brand auto giants had joint ventures with China, China assembled and replaced China's manufacturing. Without independent research and development, it became a vassal of a joint venture foreign company and was technically controlled by others. Others' skills did not learn, their R&D missed a good opportunity, and their ability to innovate was weakened.

Although independent independent R&D Chinese self-owned brand enterprises have been rushing to catch up, they have made dozens of years of progress in foreign cars in more than ten years, but core technology has high external dependence, production R&D is decentralized, quality is increasing slowly, and market recognition is low. Under the strong encirclement of quality products from major automobile brands in the world, the market share of independent brands has continuously declined.

The 2014 China New Car Quality Research Report released by JDPower Asia Pacific Company predicts that by 2018, China’s own brands will tie in with international brands in terms of new car quality. However, after quality ties, it will take 8-10 years for more consumers to buy their own brands. At present, it is the peak of China's auto consumption growth. After eight years, the large-area market will become saturated. Even if self-owned brands eventually catch up, how can we digest the expanding production capacity?

In addition, the shift in production capacity in the world also means that China may face greater auto social problems such as congestion, haze, roads, and parking facilities. The drawbacks of excessive development of the auto industry will become more prominent; a large number of auto production capacities will be transferred to China, and risks will also be Afterwards, some cities where the automobile manufacturing industry is dominated and the economic structure is single, after the city's capacity and car demand are saturated and sales no longer increase, economic growth will face a cliff-like decline, and the United States will use Detroit as a guide.

In the context of economic globalization and the country’s wider opening up, automobile joint ventures are necessary. However, at present, the development of the automotive industry should make full use of the dominant position to identify cooperative R&D projects, ensure that the market is eventually replaced with technology, ensure the sustainable development of the scientific layout of the automotive industry, and give the independent brands a breathing space before the auto consumption demand saturates. In this issue, the country needs to consider the conditions for overseas investment cooperation as a whole. Even in Europe and America, the protection of some core industries is more stringent than in China.

Not long ago, the National Development and Reform Commission issued a revised draft of the “Foreign Investment Industry Guidance Catalogue”. While eliminating foreign investment restrictions in more than 10 industries such as steel, the “automobile” is still explicitly included in the list of foreign investment-restricted industries and maintains the “red line” of the policy of “China’s stock ratio of not less than 50%”. This is a necessary move. On this basis, it is recommended that the renewal of the upcoming automobile joint venture be treated with caution.

While considering the capital-opening model that is mutually equivalent with foreign countries, it is recommended that China's auto industry be left behind. This is related to the rise and fall of Chinese cars. Of course, self-owned brand new energy vehicles are also the hope of China's automobile power.



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