Thesis Keywords Automobile Export Advantages Disadvantages Opportunities Challenges
2006 is a harvest year for China's automobile exports, China's automobile enterprises exported their products compared to 2005 and had a substantial increase in exports doubled compared to the previous year, reaching a record 340,000 units. Among them, more than 90,000 cars, three times the number in 2005, a variety of good news also appeared, such as Brilliance Automotive and the European HSO Automotive Trading Company signed an agreement of 3,000 Chinese cars exported to Europe, HSO Automotive Trading Company will be in the next few years for Brilliance to win 50,000 European users, Geo 1,000 pickup trucks exported to Iraq, Chery received a U.S. company to purchase the Chery received an order for 5,000 engines from an American company, and so on. Such a high momentum of product exports fully reflects China's potential to supply overseas automotive markets and the potential competitive pressure China poses on global automakers. Although China's automobile exports show such a promising situation, but in the export process, also revealed many problems, we need to carry out objective and systematic analysis and thinking.
I. Advantageous analysis
1. Huge low-cost advantage
China's exports of low-cost is a widely recognized fact, in which China's labor costs are much lower than foreign countries, and almost all of the local enterprises are enjoying such cheap resources. According to statistics, the average labor cost for Geely to build a car is $3.50 an hour, while the average hourly labor cost for General Motors is $73.73 if health benefits, pensions and so on are taken into account. Even if the yuan doubles in value against the dollar, Geely's hourly labor cost is only $7, still less than one-tenth of GM's." In Russia, the Great Wall Saifu SUV sells for about 35 percent less than comparable Asian products, the Landwind SUV sells for just 15,000 euros in the European market, and Chery has claimed that the products it will enter the U.S. market will be priced at 30 percent less than comparable products.
2. The export awareness of enterprises in the growing
Chinese automobile enterprises are constantly strengthening the export awareness, the reason for this is mainly two: on the one hand, it is the country's policy support, due to the increasingly fierce competition in the domestic automobile market, the majority of enterprises to take a low-priced competitive strategy, which leads to the increasingly lower product profits, and exports can be considerable export tax rebates and the country to give the export incentives, usually the export of foreign exchange earnings. Export incentives, usually export profits are higher than domestic sales profits; on the other hand, because of the automobile manufacturers have to add new equipment, new production lines to make the production of manufacturers to increase production significantly, there is a situation of overcapacity, to digest the excess capacity, it is necessary to take the export strategy.
Second, disadvantage analysis
1. Product quality, safety gaps
China's automobile industry in the accession to the World Trade Organization has been the rapid development of the world-renowned automobile manufacturers, but with the world's leading automobile manufacturers of the products compared to the quality and safety of the larger gap still exists. Many of these gaps are at the basic level, such as raw materials, the level of special technology, safety, manufacturing equipment and product design. The quality of domestic automobile in the domestic market performance can be seen, in the export of products without major improvements and improve the situation, put the international market and foreign brands, but also dwarfed. Such as the Landwind in the export of 200 cars in Europe, after the European - civil automobile organizations to 64 km/h on the Landwind car frontal collision test concluded that: the driver will be seriously injured, and even "may threaten the life of". Brilliance admitted at the BS6 product introduction meeting in Europe that the BS6 sedan only achieved two out of five stars in the crash test according to European standards.
2. Lack of composite talent
Composite talent is a recent popular word, that is, with a variety of professional knowledge and a variety of skills, specifically in the field of automotive exports, refers to the proficiency of at least one foreign language, proficient in international trade business, automotive products and business chain has a considerable understanding of the talent. As China's automobile exports from recent years began to develop on a large scale, many enterprises from 2003 before the official launch of the "go out" strategy, the international market and the domestic market will be mentioned as important as the strategic position. Therefore, the talent reserve is insufficient, the lack of unique composite talents, become the main factors restricting the development of export business.
3. Brand awareness is not high
Currently, there is still a large distance between the brand recognition of Chinese automobiles in the world automobile market and the brand awareness of Japanese, European and American automobiles that have been established in the local operation for many years. From the comprehensive index of international automobile brand competitiveness, we are only 41.7% of the United States, Japan's 42.4%, Germany's 47.3%, South Korea's 61.6%. China's auto industry to enter the international market in a big way, can only rely on independent brands and independent innovation to take on the heavy responsibility. There is a saying, third-rate enterprises to sell products, second-rate enterprises to sell services, first-class enterprises to sell brands. Chinese enterprises in the process of developing international markets, must strengthen the brand
construction efforts. After-sales service and advertising work is one of the important issues that must be resolved with great effort.
4. After-sales service network is not sound
Most of China's automobile exporters have not yet established after-sales outlets and systems, many companies simply can not talk about after-sales service, while the export volume of larger enterprises overseas so-called after-sales service system from the convenience of the fast, multi-outlets, high standards and other requirements are still far away. Toyota, for example, they develop the market, the first after-sales service to start, the preliminary run is the preparation of parts and services. China's automobile exports reached 40 countries and regions, but we currently do not have an export enterprise customer service system set up in the Middle East, Africa and other countries language dedicated service personnel. On the contrary, Shanghai Volkswagen's customer center set up German service, and Beijing Hyundai set up Korean service. A considerable number of automobile enterprises in our country hold the mentality of exporting one is one, do not consider the after-sales service problem, which results in only "raw" regardless of the "maintenance" of the situation, once the car has a problem, the consumer simply can not find the appropriate repair station. This not only harms their own interests, but also affects the reputation of the entire Chinese automotive industry overseas, limiting the development of the Chinese automotive industry in overseas markets.
5. Market development work appears weak
China's automobile exports, giving the impression that is said to do less. Such as a number of enterprises like satellite export plans have not been realized, some enterprises' export plans stranded in the middle. This shows that our enterprises in foreign market development work, the lack of systematic planning. We still lack a targeted understanding of the real needs of foreign markets. Our preliminary market research work is also not in-depth. If the foreign market as a large market segments to treat, the 4P, 4C, 4R and other related work into practice, exports will have a different world.
Three, there are opportunities
1. China's overseas demand for automotive products is growing
China's overseas demand for automobiles is growing, especially light trucks, and locally produced high-end models are gradually replacing some of the imports. In addition, independent brand cars, which have always been considered uncompetitive, have entered the international market in bulk, and ambitious Chinese automakers are actively trying to expand overseas, exporting their products to mainstream car markets in Europe and the United States.
In the export of automobile products, auto parts, accessories and bodies occupy a large proportion of the export amount reached 8.5 billion U.S. dollars in 2005, an increase of 51% year-on-year, accounting for 43% of the export of automobile products. China's auto parts export market is relatively centralized, in accordance with the order were: the United States, Japan, Canada, Germany, South Korea, of which, to the United States, Japan and the United States exports of auto parts accounted for nearly 50% of the total amount of exports. Export enterprises to wholly foreign-owned and Sino-foreign joint venture enterprises, these two types of enterprises accounted for 56% of the total export amount. It is worth noting that in 2005, the rapid increase in the export of car products, the number reached 31,125 units, an increase of 224%, the vast majority of which are independent brands of cars, the export market from developing countries to the mainstream automobile market in developed countries to transfer.
2. The government strongly supports the export of automobile products
State policy to encourage the development of automobile export trade. As early as 1985, the State Council issued Document No. 128, a number of automobile-related products are included in the national key support for the export of electromechanical products, in the foreign exchange share, raw material imports, export incentives, subsidies and so on, enjoys a preferential policy different from other products. In the past 20 years, although the mechanical and electrical products export incentives continue to adjust, but the policy has been to encourage the development of the automotive export trade. 2011, the country downward adjusted the amount of export tax rebate for many products, but the original export tax rebate rate of automobiles to a certain extent to be maintained.
3. China is entering a period of quasi-competitive
The fast-growing Chinese auto market has become an important part of the global auto market. 2005 China's auto production and sales reached 5.75 million and 5.85 million, accounting for 9% of the world's total auto sales and 23% of the global incremental automobile consumption. 2000-2005, the compound growth rate of sales in the Chinese passenger car market reached 5.7 million and 5.85 million, accounting for 9% of the world's total auto sales and 23% of the world's incremental auto consumption. From 2000 to 2005, China's passenger car market sales compound growth rate reached 37%. The cumulative sales volume from January to May this year has reached more than 2.07 million units, exceeding that of the same period last year. The rapidly expanding market has contributed to the development and growth of independent brand cars, and the market share has become more and more decentralized, with the total market share of independent brand cars reaching 25% in 2005. The development of auto parts industry is also rapid, in 2005, China's auto parts industry sales revenue reached 216.8 billion yuan, 2000 to 2005 average compound growth rate of 15%. The proportion of auto parts in the automobile industry is also rising, and in 2005 it was close to 40%, China's automobile market is entering a quasi-competitive period.
Four, the challenges faced
1. Low price policy side effects
Since China's automobile exports in recent years, the rate of growth is very fast, and the average price of exports is decreasing year by year, so Malaysia, Russia, the United States and other countries have put forward the "Chinese car threat" theory. Americans clearly put forward: China's car into the U.S. market will be faster than Japan and South Korea, China's exports of automobiles will be a threat to the United States in 5 years to 10 years. The United States and Japan in the field of automobile manufacturing disputes have never ceased, when the Japanese car into the United States has been difficult, Toyota made a certain compromise to the United States, and ultimately took root in the U.S. market. China's automobile if the use of low-priced impact on the international market, and take out a pair of low-priced rivals to break down the posture, and do not give themselves
Leave the slightest room for maneuver, is tantamount to set up a number of powerful enemies, the loss of a good export environment.
2. Backward management, export product price competition is chaotic
Currently China's export products due to the emergence of serious homogenization tendency, so it is inevitable vicious competition, killing each other. It is reported that in 2005 the country exported 172,800 vehicles, export enterprises but as many as 1,025, of which more than 100 million U.S. dollars in exports of only two companies, exports below 100 million U.S. dollars, more than 30 million U.S. dollars, there are only 8; and exports less than 10 cars in more than 600 companies, a year of exports of only a car "business! The number of enterprises exporting less than 10 cars is more than 600, and the number of "enterprises" exporting only one car a year has reached 160! I am afraid that this is a rare thing in the whole world. Low-price and disorderly vicious competition will directly lead to an increase in foreign anti-dumping investigations, China's auto industry has encountered anti-dumping cases have been as many as 8. Industry analysts believe that although the automotive industry will not be too much anti-dumping, in the long run, with the expansion of the scale of exports, the future of China's automotive and parts products are likely to face the risk of anti-dumping.
3. Barriers
At present, some countries in the world in order to protect their automobile industry, have set up tariffs and non-tariff barriers, such as Russia's Ministry of Economy and Trade Development, Deputy General Manager of the Committee on Foreign Negotiations, Andrei Kushnirenka, said: Russia's market has appeared in the production of low-grade cars in Asian countries, once the Russian Federation to face a large number of countries from Southeast Asia, low-grade car imports, will be "the impact of the automobile imports from Southeast Asia. Automobile import impact, will "immediately raise the corresponding automobile import tariffs". More noteworthy is that Chery and Geely are taking Russia as the next key overseas market target. Malaysia's tariffs from the early 100% down to the current 50%, in the domestic price of about 30,000 yuan Geely Haozheng, in Malaysia, the offer reached more than 100,000 yuan high. If Southeast Asia, Russia, the country's high tariffs and trade barriers, it is difficult to prevent China's cheap cars in large quantities, if the European and American markets to implement emissions, safety, environmental protection and other strict regulations and standards, is China's car to open up the market space of the biggest obstacle. The U.S. Department of Transportation's safety standards, federal air pollution control standards and average fuel economy standards, than 20 years ago, Japanese cars into the United States when the requirements are much stricter, and most of the current Chinese-made cars can not meet U.S. standards.
4. Intellectual property disputes
In the past two years, China's automobile companies and some foreign automobile companies about intellectual property disputes continue to appear, such as Toyota sued Geely, General Motors sued Chery, Honda sued Shuanghuan and Toyota investigated BYD F3 and other foreign automobile companies sued the domestic automobile manufacturers infringement of the incident occurred. These intellectual property disputes not only damage the image of China's automobile enterprises, but also make China's automobile to the international market road becomes difficult.
5. Appreciation of the RMB exchange rate
Since 2005, the U.S. dollar exchange rate against the RMB has been declining, the RMB exchange rate has been appreciating, which has a greater impact on China's exports, and the export of automobile products is no exception. As China's automobile enterprises export models are concentrated in the field of economy cars. Compared with other industries in the international market, in the automobile field, China is still the cheap route. Obviously, the appreciation of the renminbi, inevitably caused by the automobile export prices, unhelpful to international competition.
Chinese automobile enterprises want to go to the international market, and the international market of some well-known multinational companies in the same field, it is necessary to continue to practice internal strength, improve their competitive strength, but also a comprehensive understanding of the international market in a variety of environmental factors, and strive to do "know yourself and know the enemy, can not be dangerous". Once the attack on the international market, we must win the battle, attack, so as to establish a good corporate image, which is not only related to the long-term interests of the export enterprises themselves, but also related to the long-term interests of China's automobile industry.
References:
Bai Ming: Analysis of China's automobile export trade growth after WTO accession, World Mechanical and Electrical Economic and Trade Information 2011, 10
Lack of composite talents affects China's automobile exports, China Automobile News, July 7, 2006
Jin Xuejun: Yemeni automobile market in the research, Ministry of Commerce website
Abstract with the improvement of China's automobile market, it is necessary to win the battle, so as to establish the corporate image, which is not only related to the long-term interests of the export enterprises themselves, but also related to the long-term interests of China's automobile industry. abstract with the improvement of China's automobile production constantly, some strength growing enterprise no longer meet the eye only stay in the domestic market, are manoeuvring to make in the international market.This paper USES the SWOT analysis, from the perspective of strategic management, our country automobile products export competitivenessit is the best way to make the automobile market in Yemen. This paper USES the SWOT analysis, from the perspective of strategic management, our country automobile products export competitiveness is analyzed.Through the analysis of the advantages and disadvantages of China's automobile Through the analysis of the advantages and disadvantages of China's automobile enterprises, as well as the opportunities and challenges existing in the external environment analysis, in order to prompt the auto production enterprises in our country can not blindly aggressive when towards the international market, also can't rush in where angels fear to tread, should according to the actual situation of their enterprises make the export of this enterprise development strategy. key words auto export advantages disadvantages opportunities challenges in 2006, is the most important and most important of all. disadvantages opportunities challenges in 2006, is China's auto products export crops, compared to Chinese automobile enterprise's products export has increased dramatically in 2005, exports year-on-year growth, a record 340,000 vehicles.Including more than 90,000 cars, 3