The cost advantage of local brands to break through the loss of three major challenges facing

Posted on 11/26/2014 3:24:31 PM

November 25 "development of the automotive industry in South Korea," the fall seminar twelve independent brands, China's auto output, the Korean car has become a hot topic of the lesson, etc.
"The fundamental way out for China's auto is to create your own brand, and ultimate brand is quality, but also to build to create a high quality system." As Chinese brands represented at the meeting, the president of Chery Yin Yue said, "was taken before a lot of money to invest in technological innovation, but later discovered that technological innovation does not necessarily help build the core competitiveness of enterprises, and establish a system can build the core competitiveness of enterprises. "
With growing political pressure, the State Information Center, Xu Changming, director of resource development at the conference called for technology policy to maintain a balance with the rhythm of their own brand of technical progress, in order to allow time their own brands. "The standards of environmental protection, for example, must be eliminated first in the general population of highly polluting vehicles, but not in all areas of the five criteria required to reach the country."
Xu Changming, also called on the premise of compliance with WTO rules and do everything possible to make room for the development of independent brands, as organs of the party and government public service vehicles, public institutions and state-owned enterprises, rental and lease vehicles vrz head rotor 149701-0520 try to consider their own brands, and this Meanwhile, policy support to be inclusive, not too inclined to SOEs, and take into account the interests of the company private.
While in September, ending a dozen independent brand even lower market share year on year increase of 0.2%, but in the long run, its own brand also faces three major challenges.
First, the advantage of the relative cost of its own decay brand, foreign brands cost advantages of scale and price factors, joint ventures and the price advantage of greater depth to lead, as the price of Nissan, GM Shanghai, Beijing Hyundai and other models of joint ventures have to fall 50000-6 wan range. In addition, the integrated use of car expenses (including purchase, make cards, prices, factor parking fees) is not conducive to the development of vehicles inexpensive upgrade.
Third, rapid updating secondary markets consumer demand, difficulty adapting to their own brands. Beijing, for example, the market share of independent brand decreased from 20.3% in 2010 to 10.9% in 2013, the market share of luxury cars in the same period from 10.4% to 21 5%. Beijing accounted for the following models A0 class market fell from 17.9 percent in 2010 to 8.9 percent in 2013, above the level of the same period models B ratio increased from 32.5% to 46.2% .
State Information Center research shows that independent brands and joint venture brands manufacturing quality is pretty models, the cost is higher than the marks of joint ventures.
Survey also found to improve the quality of their own brand on the one hand, the gap between the joint venture brands in decline, but the power of the brand is declining, study the reasons for that again, though his own car make quality improved but even with the durability joint venture vehicle brand there is a big gap.
Xu Changming believes that independent brands should take to improve the quality of the road. In the coming years, from the point of view of production, China will end the driven factor (fully rely on price competition, low cost, low quality) and efficiency-driven stage to speak from the point of view of the demand, the per capita GDP of China is still growing, consumer upgrades will be more occur in a wide range.
Of course, not all independent brands have been dropped twelve sales Beiqi own first ten months of this year was 236,921, an increase of 74.8%. As for his own brand twelve reasons of a fall, and vice president of Beijing Automotive Co., Ltd. shares Beiqi Liang Guofeng told reporters that "the root cause of their own brand twelve fall even three years ago not has resulted in a good understanding of the market context, its own brand competition in the chain and the chain is, and most important is the quality of the products to compete in terms of quality, Beiqi do internal controls, the entire database and joint venture brands reach the level of consensus. "
"A lot of independent brands are really heard, haste makes waste, in finding sales and profits at the expense of quality, resulting in a vicious circle, but the low quality is not very far, we have to bear on lonely sales, but definitely not the quality of our solitude. "said Yin Yue reporters," Chery peak in 2010, when the transition is made, some people thought we were crazy, in fact, reflect on our own brand in a way, began to pay attention to the quality of the transition, the quality is not up to you to postpone the list. "

Post a comment

Hello guest, care to post a comment?