China's automobile and parts production globalization trend

Economic Recovery Brings a Stable Growth Environment Under the influence of the financial crisis and the real retreat, the global economy will cool down more than originally expected in the first half of 2010. The global economy will grow in the future, but it will be slow.

First, the basic conditions for supporting a new round of rapid economic growth in the world have not changed. Economic globalization has enabled traditional manufacturing industries to continue to transfer to developing countries. Advanced science and technology and management experience have continued to spread to developing countries and have increased labor productivity in developing countries. Developed countries have passed through the difficult stage of industrial hollowing at the initial stage of industrial transfer, and achieved breakthroughs in industrial restructuring. High-value industries such as information, biology, new materials, new energy, environmental protection, aerospace and aviation, and high-end service industries such as finance are fast. The ability to develop and absorb employment has clearly increased. By the second half of 2010, this basic pattern will not only not be reversed, but will be further strengthened.

Second, the economic growth of the developing countries represented by China will continue to be noticeable. In 2009, China, India and Russia contributed half of the global economic growth rate. The growth rate of the world economy in 2010 will be around 4%, and it will still be in a period of rapid growth. World trade and international investment will also maintain rapid growth. The external environment of China’s economic development is still generally optimistic, especially in the first two quarters. China's GDP grew by 11.1% year-on-year, an acceleration of 3.7 percentage points from the same period last year. It is expected that China's economic growth rate will decrease in the second half of 2010, but it will still be between 8.7% and 10% on average throughout the year.

The continuous improvement of the economic situation will help further enhance the residents' consumer confidence, and consumption will continue to maintain steady growth. Despite the impact of high oil prices, due to the economic growth, China's auto consumption will remain at a relatively high level.

The favorable automobile policy continues to be a new series of policies that the country continues to revise in 2009 and the first half of 2010, which will benefit the development of the automobile industry. In 2010, the automobile industry in China is still bright.

The state encourages automobile and motorcycle production enterprises to develop international cooperation, exert comparative advantages, and participate in the international industrial division of labor; support large automobile enterprise groups and foreign automobile groups to jointly merge and reorganize domestic and foreign automobile production enterprises, expand the scope of market operations, and adapt to the global trend of automobile production. .

Supporting the research and development and production of automotive electronic products, actively developing the automotive electronics industry, accelerating the use of electronic information technology in automotive products, sales logistics and manufacturing enterprises, and promoting the development of the automotive industry.

Encourage automobiles, motorcycles, parts and components manufacturing companies, and financial and service trade companies to learn from internationally mature automotive marketing methods, management experience, and service trade concepts, and actively develop auto service trade.

The implementation of the anti-monopoly law should be considered good news for the domestic auto market. The minimum price and prohibition of cross-border sales are illegal, leaving more room for autos, especially some tight car prices, and making car sales a national game. At the same time, the anti-monopoly law also broke the monopoly of auto parts manufacturers. According to the current auto market situation, this kind of change has given rise to consumer confidence and more expectations and can play a role in stimulating the auto market. The anti-monopoly law has also pushed the brand 4S store to the forefront and has been subjected to a more severe test of the auto market.

High oil prices affect car demand With the growth of domestic car ownership, car consumption of petroleum has gradually increased. In the first half of 2010, China’s vehicle fuel consumption exceeded 90 million tons, accounting for a quarter of total domestic oil consumption. China's imports of refined oil and crude oil amounted to nearly 200 million tons, and the foreign dependence on oil exceeded 45%, which has affected national security.

According to experts from the China Association of Automobile Manufacturers, car ownership will increase at an average rate of about 6 million vehicles a year, which means that the demand for petroleum in the future will increase further.

At the same time, international oil prices have gradually resumed high levels since 2009, and the possibility of continued growth in crude oil prices has not been ruled out in 2010. The rise in crude oil prices has also led to the continuous soaring of the prices of auto fuel in China. China's auto fuel consumption is huge, and auto fuel prices are also high. With the rising fuel prices in the future, the use of vehicles will further increase, which will play a role in limiting the demand for the automotive market.