Exports drop the autonomous car's internationalization into a bottleneck

Who has married the foot of Chinese car exports

Last year, China’s auto exports exceeded 1 million vehicles for the first time, becoming a milestone in the history of Chinese automobiles. While the industry’s people were confidently looking forward to another new record, the export situation that continued in 2013 was “not giving power” to the domestic auto companies.

Export volume fell for three months

The China Association of Automobile Manufacturers released data recently: In July, China’s auto exports were 79,900 units, a decrease of 5.4% from the previous month and a year-on-year decrease of 11.6%. This is the monthly export of automobiles that fell below the level of the same period of last year for three consecutive months and continued to show decline.

Tire World Net compares vehicle export data for each month of this year and finds that the first decline in automobile exports occurred in May, with exports of 86,400 vehicles, a decrease of 3.4% from the previous period and a year-on-year decrease of 16.1%. In June, the export situation did not improve. The number of cars exported was 84,400, a slight decrease from the month earlier and a 21% year-on-year drop.

In the face of the above-mentioned catastrophic situation, the China Association of Automobile Manufacturers stated that “the export situation is not optimistic” and said that it will organize domestic car dealers to conduct analysis and discussion in this regard.

"Internal and external problems" face-to-face attack

What are the reasons that led to the industry's unanimously optimistic view of the "great decline" in auto exports?

Dong Yang, executive deputy chairman and secretary-general of the China Automobile Association, said that the continuous decline in auto exports is not accidental. The most important reason is that the economic situation of the major export target countries is sluggish; in addition, the appreciation of the renminbi also has a negative impact on automobile exports.

“The increase in trade disputes between countries and exchange rate changes are the most direct influencing factors.” Zhang Junyi, executive director of Roland Berger Consulting Co., Ltd., told Tire World Net. “In addition, countries’ economic recovery is slow, market demand is limited, and Chinese auto companies themselves There is a wide gap between brands and channels, and various factors have contributed to the decline in exports."

Earlier, Ministry of Commerce spokesman Shen Danyang stated on this year's foreign trade situation that under the "three pressures" of "three big mountains" such as external demand, cost, and trade environment, the problem of insufficient external demand and poor trade environment cannot be solved fundamentally. In 2013, the overall foreign trade situation was still very severe. The auto industry obviously follows the "eat melon."

Hard to "overturn" in the second half of the year

China Automobile Association predicts in the first half of the year that China will export about 1.1 million cars in 2013, with a growth rate of about 9%. Judging from the current situation, it seems difficult to achieve the above goals. Then, is there any possibility of "overturned" auto exports in the second half of the year?

Zhang Junyi gave a negative answer to this. He analyzed that the factors affecting auto exports will be difficult to change in a short period of time. The days of auto exports in the second half of the year are still unfavorable. The auto exports that broke millions of vehicles this year are "very mysterious."

Tire World Net also learned that at many auto shows this year, the number of foreign buyers attending the meeting and the export turnover have all decreased significantly year-on-year. This to a certain extent also shows that this year's auto export situation is indeed not optimistic.

The export of self-owned brand car companies is hampered by government support

“The loss of embankments outside the embankment” was one of the main strategies for independent brands to cope with the downturn in the auto market. However, the current decline in exports has caused the independent brands to lose another barrier against the “winter”.

In July, auto companies exported 79,900 vehicles, a decrease of 5.4% from the previous month, a year-on-year decrease of 11.6%, and the number of double-digit declines from the previous month and the same period of the previous year further widened. In the first half of this year, China’s auto exports totaled 486,800 vehicles, a decrease of 0.6% from the same period of last year. From this year’s perspective, the overall situation of China’s auto exports has declined.

Related auto companies stated that the low demand in the export market, trade barriers and the appreciation of the renminbi are the main reasons for the decline in exports, and the situation in the second half of the year will not be too good.

At present, as the world’s largest producer and seller of automobiles, China’s auto industry is looking to become stronger and stronger, and going global is an unavoidable stage. The decline in exports indicates that we are still far from the level of participating in international competition. As is the case in China, if you want to stand up in overseas markets, you also need to improve your internal skills.

Loss of barrier

The first decline in China’s auto exports occurred in May, with exports of 86,400 vehicles, a decrease of 3.4% from the previous month and a decrease of 16.1% from the same period of last year. There was no improvement in June. According to the data released by the Automobile Industry Association, the number of cars exported was 84,400 in June, compared with 107,400 in the same period of last year, a year-on-year decline of 21%.

Dong Yang, executive vice president and secretary general of the China Association of Automobile Manufacturers, said: "Now, it seems that the decline in export year-on-year is not accidental. Among them, the major economic factors in the export target countries are the main reasons for the sluggish economy. In addition, the appreciation of the renminbi is also a vehicle exporter. Cause some negative effects."

Geely Automobile spokesperson Yang Xueliang also stated that the decline in Geely’s sales volume has a significant relationship with the depreciation of the yen. The depreciation of the yen’s exchange rate is reflected in the fact that the price of Japanese cars has fallen by about 30%, affecting the cost-effectiveness of Chinese auto brands.

It can be said that the exacerbation of overseas competition has exposed the barrier of own brand to the risk of falling.

Joint venture threat
In addition to the big environment, domestic joint venture brands have also become new competitors for the export of their own brands. According to data from the China Automobile Association, in the first half of this year, the export volume of China's passenger vehicle joint ventures increased by 17.4% year-on-year to 49,500 vehicles, which accounted for 20% of the total passenger vehicle exports from China. It is not difficult to see that under the premise of overcapacity of the current joint venture brand, the joint venture will inevitably upgrade the export business to a new strategic level and will have a huge impact on the development of independent brands overseas.

For example, the number of joint venture automakers such as Shanghai General Motors is gradually increasing, and even Beijing Benz has exported long wheelbase models. Therefore, it can be seen that multinational car companies have developed a number of models that cannot be manufactured in other regions in China to meet the market demand in the surrounding areas. This trend has become more and more obvious, and these markets are often similar to the Chinese market. The degree also coincides with the target market for independent vehicle manufacturers' exports: it is also locked in Africa, South America, Asia Pacific and other regions.

Therefore, under the pressure of joint venture brands, the domestic and foreign markets have already formed their own brands.

National will

Under the current severe situation, independent brands do not have too many shortcuts, and they urgently need to improve product quality and brand influence in order to better ensure their domestic and international market position.

At present, China's own brand overseas strategy is in the stage of trying to invest and build factories overseas. The overall development began with a large-scale transformation from the initial trade mode to the establishment of an assembly plant in the area for localization attempts.

Although this process is accompanied by uncertainties and huge risks in local policy changes, it cannot be avoided. At the same time, the upgrading of Chinese car companies in terms of product quality and branding must also be synchronized.

Just as companies work hard, they also need the participation of the nation’s will. The person in charge of an independent car company told reporters: “Some problems that require dialogue at the government level can solve problems. It is very difficult for companies to do it themselves.”

As we all know, in the internationalization of Japan and South Korea’s auto industry, there has always been the support of the government. In China, not only has there not been “special care” for self-owned brands, but there is no government in the process of car companies fighting for overseas markets. Build the platform.

The need for the independent brand to go out and go well requires the government to play an important role in it.

Severe situation in the second half of the export of commercial vehicles

According to statistics from the China Automobile Industry Association’s automakers’ exports, in June, China’s auto exports were 84,400, compared with 107,400 in the same period of last year, and the year-on-year decline was serious. Compared with the export volume of 86,400 vehicles last month, There has been a slight decline in the chain. In the first half of the year, a total of 486,800 vehicles were exported, a decrease of 0.6% over the same period of the previous year. Among them, commercial vehicles exported 192,500 vehicles, a decrease of 4.8% over the same period of the previous year.

The August Automobile Association's monthly auto production and sales data information conference showed that China's automobile exports fell in May compared with the same period of last year, and that the auto exports in July were 79,900 units in July after year-on-year and double-on-half drop. , a decrease of 5.4% from the previous month and a year-on-year decrease of 11.6% (according to the export data of automobile manufacturers). Auto exports once again faced a grim situation of a year-on-year decline and a double-on-quarter decline, and the downward trend of the chain was further aggravated.

To this end, the "Commercial Automotive News" reporter conducted a survey of a number of commercial vehicle manufacturers in the first half of the investigation.

Brazil: Protectionism Becomes a Blocker

According to data released by the Brazilian Automobile Industry Association recently, in the first half of this year, Chinese car manufacturers’ collective sales in Brazil declined, and market share decreased.

In the first half of this year, JAC sold 8,936 vehicles in Brazil, occupying a market share of 0.52%, ranking 14th among automakers. In the same period of last year, the sales volume was 10,265 units, which accounted for 0.63% of the market share. It is the 14th. Compared with the same period of last year, JAC's sales in Brazil for the first half of the year fell 12.9% year-on-year. However, JAC’s share of market share in Brazil has risen slightly this year, and the decline has been relatively slow among Chinese auto makers.

Hafei sold 1637 vehicles in Brazil in the first half of the year, occupying only 0.42% of the light commercial vehicle market. It ranked 18th among all car companies, compared with 5863 in the same period of last year, which accounted for 1.64% of the market share, ranking among car companies. Number 13. Compared with the same period of last year, Hafei's sales volume in Brazil in the first half of the year dropped by 72% year-on-year.

"The reason why Chinese car companies encountered Waterloo in the Brazilian market is inextricably linked with Brazil's implementation of the new regulations on automobile industry product taxes." Yang Aiguo, deputy secretary-general of the Automotive Sub-committee of the China Electromechanical Products Import & Export Association, told the "Commercial Automotive News" reporter. In September 2011, the Brazilian government announced that it raised the IPI rate of industrial products tax and Chinese automakers that exported vehicles to Brazil were affected. In accordance with the relevant regulations, vehicles manufactured by foreign automakers in Brazil are produced in other markets such as Brazil and South America. The country (Argentina, Uruguay and Paraguay) has less than 65% spare parts and its import tax rate will increase by 30%.

The Chinese car companies did not meet the standards and they were hit hard. So far, when Brazil implemented the policy, no Chinese car company had an assembly plant in Brazil, and it would be a far cry to meet the localization rate of 65% of parts. To cope with the requirement that the localization rate of parts and components should not be lower than 65%, Chinese car makers such as Jianghuai and Huaihua are currently preparing to build automobile industrial parks in Brazil to produce auto parts. However, it is impracticable to build auto industry parks in a short period of time. It is still unrealistic to break through the restrictions imposed by Brazil’s new auto industry product tax on Chinese auto exports in a short period of time.

Commercial vehicle prices rise up

The person in charge of overseas sales of Suzhou Golden Dragon told the "CV News" reporter that the company's exports in the first half of this year have not changed significantly compared with previous years. “Export business is a new force in Suzhou Jinlong's overall business. We must continue to make the export business bigger and stronger, transform this new force into a backbone force, consolidate the company’s position in the overseas market, and further establish Suzhou Jinlong’s foreign passenger cars. A good brand image and reputation in the eyes of consumers.” The staff member said.

When asked if they are concerned about the double-on-half year-on-year drop in vehicle export data in June and July, as well as any forecast and outlook for the export situation in the second half of the year, the above-mentioned staff said that Suzhou Jinlong will unswervingly implement and implement With its own export strategy, on the basis of consolidating the markets of the third world countries, it has actively explored the international market, further improved product quality and after-sales service levels, and really strengthened the Hager brand, so that end-users can better understand this brand. degree.

According to relevant personnel from Dajinlong responsible for overseas marketing, Daikin Dragon’s export volume in the first half of this year was 4,595 units, which represented an increase of 36% compared with the same period of last year. The export models were more balanced, and buses, coaches, and road buses accounted for a similar proportion. The model is still a bright spot in the export of the Grand Dragon. From the perspective of export regions, there are both low-end and middle-end markets dominated by third-world countries, as well as developed Western markets such as Australia and Western Europe.

According to reports, the reason why the export performance of first-half year-on-year increase of 36% in the unsmooth export environment was closely related to Dajinlong’s long-term emphasis on its own export strategy was inseparable from its long-term efforts to open up the international market. Talking about the export situation in the second half of the year, the staff member stated that the overall export environment is not good, and Da Jinlong will certainly suffer certain impacts. The company's exports in the second half of the year may face certain difficulties. In response, Daikin Dragon will pay more attention to the cooperative relationship with the powerful terminal customers. This part of the strong end customers will have a crucial impact on our export situation."

The reporter of Commercial Automotive News learned from the overseas marketing department of Zhongtong Bus that the export situation of Zhongtong Bus in the first half of this year was relatively good. However, in order to cope with the export difficulties that may be faced, Zhongtong must further strengthen its brand construction and overseas marketing channel construction. “The international passenger car market environment is not good. How to achieve the growth of export volume and export value in the unsmooth international passenger car market environment. Zhongtong still has a long way to go,” said the person in charge of the company.

Improve the ability to resist risks and actively explore the markets in developed regions

June and July is an important turning point in the midst of the year. It has seen a double decline in two consecutive months, and the magnitude has further widened, which has caused the industry associations to attach great importance to it. Most auto companies also told reporters that the lack of demand in the export market, trade barriers, and the appreciation of the renminbi are the main reasons for the decline in exports, and the situation in the second half will not be too good.

Dong Yang, secretary-general of the China Association of Automobile Manufacturers, believes that the export situation in the second half of the year will not be particularly optimistic. Despite the Chinese import and export data released by the National Bureau of Statistics in July, China’s overall export market has changed from a 3% drop in June to a positive 7%. Growth, but from the perspective of auto exports, has not been affected by the overall situation and remains in a downturn. "This month's double decline in export data has aroused great attention from companies and associations, and we have listed it as one of the major current tasks to prevent the export situation from deteriorating." Dong Yang said. At the same time, he said that China Automobile Association is proceeding to organize meetings, from the enterprise level, the government level to find auto exports fell into the crux of two consecutive slides for two months.

Yang Aiguo believes that the two-month-on-year decline in automobile export data in June and July is a temporary fluctuation, and it cannot be said that China's auto export situation has entered a new turning point. “The reason why this happens is closely related to the sluggish international economic situation. Since the outbreak of the European sovereign debt crisis, the world economy has been weak and the recovery has been weak. Under such circumstances, China’s export situation will inevitably be affected. The slump in auto exports and the decline in one node are understandable, Yangaguo analyzed.

In addition to being affected by the international economic situation, the appreciation of the renminbi against the US dollar, the Japanese yen, the Korean won and other foreign currencies continues to affect the decline in China’s auto exports. The continuous appreciation of the renminbi means that the Chinese automobile's price advantage in the world market will be weakened. If the advantage of the Chinese auto brand has not yet been established, if the price advantage is lost again, Chinese auto exports will inevitably be greatly affected.

In addition, Brazil, Russia and other major Chinese auto export markets have implemented disguised protectionism, which will also have a certain impact on the local export situation. To cope with the current decline in exports, Yang Aiguo said that China’s auto companies should actively expand the markets of developed countries on the basis of consolidating the developed markets, pay attention to brand building, and increase the anti-risk capabilities of Chinese automobiles in the world’s auto market.

Automobile "going out" government must monitor

Exports continued to decline, in addition to their own reasons, the government-level reasons can not be ignored. Although the road to internationalization has become the consensus of China's independent auto makers, due to the lack of unified planning and guidance, as well as ineffective supervision, the independent auto makers have been decentralized in their export strategy, and disorderly competition has always existed.

This is also a problem that has plagued exporters. Wang Fengying, president of Great Wall Motors, deeply touched this point: “The government must introduce specific measures to regulate the order of automobile exports, increase supervision, and shift the automobile export policy from trade-oriented to investment-oriented in order to enhance the country’s overall industrial competitiveness.”

Multiple short boards to be regulated

In fact, due to the lack of a unified strategic plan and industry guidance, the understanding, positioning, strategic goals, and action strategies of companies for internationalization are also quite different. It is demonstrated in overseas that each of them does not have a positive interaction with each other. Support, which directly leads to the growing risk of Chinese cars growing overseas.

There are multiple challenges to be solved in car exports. The first is the combination of quality, long-term competition and vicious competition, which has seriously affected the reputation of “Made in China”. Second, the construction of overseas marketing networks and service systems for Chinese auto companies has lags behind and has affected sustainable development. Third, with the impact of factors such as the appreciation of the renminbi, the price advantage of Chinese cars abroad has gradually weakened. Fourth, foreign trade barriers have led to increased trade friction in auto exports.

What is more important is that the difficulty of the auto brands entering the developed countries' auto market is gradually increasing. For example, in the automotive market in developed regions such as Western Europe and North America, standards for emissions, safety, and technology are getting higher and higher, and they are being updated more and more quickly. The certification process that has been introduced into enterprises has taken a long time, has complicated procedures, and has high costs; at the same time, the markets in these regions With high saturation and relatively stable brand structure, Chinese companies face many difficulties in the market development process. From the current perspective, self-owned brand cars lack the conditions for large-scale entry.

Under this circumstance, it is more necessary for the government to actively supervise and guide independent brands from the entire country level. Judging from the current situation, many companies’ overseas markets are basically all fighting against each other, lacking a unified government platform for support and supervision.

Therefore, during the "two sessions," Wang Fengying recommended that relevant state departments accelerate the formulation of a strategic plan for the development of China's auto internationalization and conduct unified and effective industry coordination and guidance.

Play government functions

In light of the problems existing in current exports, it is imperative for the government to change its role in enhancing economic competitiveness. The country needs to introduce specific policies to encourage car exports and regulate export order. The purpose of improving the standards for the export of independent brands and improving the quality of export services is to maximize the protection of export vitality and the most reasonable access threshold.

“The government should support export entities with large export volume and scale advantages, while those export enterprises with small export volumes and weak strength will be forced to eliminate. Second, the standards and requirements for overseas marketing network construction will also be strengthened. In order to avoid vicious competition for prices, the Ministry of Commerce may punish companies that often provoke price wars outside the country by abolishing their export qualifications in the next year,” said an official responsible for export of independent brands.

In addition to policies, the government must also actively perform its service functions. “When auto export companies are opening up the market, each manufacturer will independently establish a sales network and after-sales service point, and the cost will certainly be high. The government has already tried to establish a sales and after-sales service organization with a number of auto export companies.” Road.

South Korean domestic used car sales continue to rise

Starting in the 1950s, the Korean automotive industry took about sixty years to assemble from the initial workshop-style assembly and imitation to become the world’s fifth-largest automobile manufacturing country. On the one hand, Korean domestic brands such as Hyundai and Kia have become the world’s mainstream car brands with unremitting efforts, and their brand awareness and acceptance have been continuously improved. On the other hand, the automobile industry has gradually matured in the Korean mainland, used cars, The automobile chain and other industrial chain businesses have formed a certain scale, and the residents’ car consumption habits and consumption patterns are also very rational.

At present, South Korea’s Hyundai, Kia, General Motors Korea, Renault Samsung and Ssangyong Motors have a total of five major automakers. In 2012, the total sales volume of these five auto companies was nearly 8.2 million units, a record high, with a year-on-year growth rate of 5.6%. Among them, the Hyundai-Kia Group sold 7.12 million vehicles worldwide, an increase of 8% over 2011.

However, unlike the booming global auto market, domestic auto sales have shrunk in recent years due to the economic downturn in the country. The data shows that in 2012, Korean auto sales were approximately 1.4 million, which shrank from 2011. 4.2%, according to forecast, this data will continue to decline in 2013. However, in sharp contrast to this, South Korean domestic sales of second-hand cars continue to rise, and both used car local deals and exports have formed a certain scale and become an important part of the Korean automobile industry.

Although from a time point of view, the history of the used car market in Korea cannot be compared with the developed markets in Europe and the United States, but after years of development, the used car market in South Korea has also matured, and it has formed an independent sales of new and used cars, auction-based, local and export. Two Wang and other characteristics.

The fourth largest exporter of used cars in the world

Looking back at the development track of used car market in Korea, we can see that for a long period of time, the sales volume of used cars in South Korea is directly proportional to the sales volume of new cars, maintaining a sustained growth. In 1990, the sales of used cars in South Korea was 530,000. However, it is not enough to compare with the sales of new cars. However, in 1998, the sales volume of used cars surpassed the sales volume of new cars.

In the past two to three years, due to high oil prices, economic downturn, and other factors, more affordable and economical used cars have become more popular, and the Korean auto replacement cycle has become shorter and shorter. Vehicle sources, second-hand car sales have been explosive growth. According to statistics from Korea's Ministry of Land, Infrastructure, and Maritime Affairs, in 2011, the number of actual used car transactions in South Korea was 2.32 million, and there were only 1.6 million new car sales in the same year. Based on the average transaction price of 7 million won, the total used car trade in Korea exceeded 1.6 billion won this year.

At the same time, the number of used car exports in South Korea continues to grow. In 2011, the number of used car exports was 248,300. In 2012, from January to September, the export volume had already reached 244,700. It is estimated that at present, the scale of South Korean used car exports is approximately US$900 million. Developing countries such as Jordan and Russia are the main exporters in the Middle East, and South Korea is also the fourth largest exporter of used cars after the European Union, the United States, and Japan. According to South Korean experts, the scale of its exports is expected to increase by 3-4 times by 2018, and the export target countries will also expand to Middle East, Africa and South America.

Used car transactions are mainly auctioned

Unlike other countries, new car dealers can mix and match the old car business. In South Korea, new car sales and old car sales are completely independent and non-participatory. At present, there are about 4,000 used-car trading centers of various sizes in Korea.

The auction site is an important hub for the circulation of used cars in South Korea and is open to both private and used car dealers. The auction house provides door-to-door pick-up service for owners who have demand for sales. Owners who need to sell used cars can choose to sell the car directly to the auction house, or they can participate in the auction held by the auction house themselves. Used car dealers usually also choose to travel from the auction.

The auction site has its own used vehicle professional appraisal agency and vehicle maintenance personnel. Whether it is a private or used car dealership, the car sources purchased from here are all tested and refurbished, so the price of vehicles circulated from the auction house, in addition to earning In addition to a certain profit, the cost of inspection and repair of vehicles will also be taken into account. When the car sources for private consumers provide quality assurance reports, they also provide quality guarantees for a certain period of time. The reputation is high and transaction procedures are relatively simple. Therefore, the used cars of this channel are popular with Koreans.

At this stage, there are three large-scale used car auction markets in South Korea, the earliest of which is the South Korean car auction market. The auctioned cars are mainly vehicles that could not be auctioned in the past, so the final price of the auction site Relatively lower than other markets. The Seoul Auto Auction Market was established in 2000. This auction market will classify used cars for sale into different grades depending on the condition of the car. At auction, the auction site will display information on the big screen on the spot. Those who participate in the auction can directly Participating in bids through bidders is more efficient than traditional auctions. The other is the Hyundai-Kia auction market, which has a higher degree of electronicity. The auction site photographs the quality, performance and form of the vehicles for sale as videos. Consumers do not have to visit the scene to get a general understanding of the whole picture of a car, of course. The auction site also provides on-site watching functions.

Emerging trading model challenges the integrity of the used car market

With the development of the market, some new features are appearing in the used car trade in South Korea. The appearance of a large number of used car professional websites is rewriting the circulation structure of the used car market. Previously, used cars were required to go to a professional used car dealership physical store or auction site, but now, websites such as SK Encar, Bobamedream, and Autoinside, which provide used car information, make it possible for people to stay online without leaving home. Find a suitable car source, determine the target, and then contact the car dealers selling the car or individuals to contact the car.

But this also gave birth to a lot of new problems, one of which is the quality of the website is uneven, the quality of the car source is also very different, the buyers and sellers are not acquainted with the product information, shoddy, fraudulent sales, etc. There has been a challenge to the integrity of the used car market in Korea.

On the other hand, under the influence of competition, the traditional second-hand car trading market began to seek new space for development. Second-hand car dealers began to pay attention to brand building, large-scale comprehensive second-hand car trading market began to emerge, and the business scope further expanded from the past. Pure used car sales, to the current can provide vehicle beauty repair, modification and debugging services.

China's auto industry has a huge potential for exploring the Arab countries

At the 2013 China Auto Yinchuan Forum held in Yinchuan City, Ningxia, a few days ago, experts believed that China’s automobile exports to the Arab countries had market adaptability in terms of product characteristics, pricing, and management methods, which had great potential.

“China has just experienced a period of rapid expansion of auto demand, and most Arab countries are in such a period of rapid development. Its auto market structure and demand levels are similar to those of China’s auto market in previous years.” China Council for the Promotion of International Trade Motors Wang Xia, president of the branch of the industry, said that China’s auto exports to Afghanistan have market adaptability in terms of product characteristics, pricing, and management methods. They have the advantages of low prices, economical durability, strong practicality, and high cost performance. Both sides have great potential for economic and trade exchanges in the automotive sector.

According to the characteristics of the Arab automobile market, Yang Jian, executive editor of “China Automotive News” China, pointed out that well-known automobile companies generally perform local assembly for the regional market. However, since 2011, the situation in the Middle East has been turbulent, with foreign investment in Europe, the United States, and Japan. There is an increased risk for auto companies to “indigenously” build factories in the Middle East.

“Under such conditions, the advantages of China, especially Western cities, in terms of human resources and costs will become more prominent and may become the foothold for foreign auto companies to radiate to the Middle East market.” said Chen Yao, a researcher at the Institute of Industrial Economics at the Chinese Academy of Social Sciences, Ningxia It will become a "bridgehead" open to Arab countries. If the level of policy opening and support is enhanced in the future, China-Arab cooperation in the automotive field will be effectively strengthened.

The current status of China-Africa auto trade also shows bright prospects for the “western advance” of the Chinese automobile industry. According to statistics, in 2012, China exported about 320,000 vehicles to the Arab League, which accounted for about 31% of China's total vehicle export volume. The Arab League has become one of China's important auto export markets.

Some experts at the meeting believed that China’s auto exports to the Arab League have not yet formed an expansion of the overall region and have not yet effectively developed the high-end market. A set of statistical data from the China Council for the Promotion of the CCPIT Automobile Industry shows that China’s exports to the GCC countries with higher levels of economic development account for only 10.87% of the total exports of the Arab League’s vehicles.

“Chinese auto companies want to change the simple trade of goods to provide a full range of services.” Wang Xia said that relying on the construction of a service system to support brand building, establish “Chinese companies are responsible companies, and Chinese auto products are products with excellent quality” image of.

Once considered as an overseas market for independent brand development “safe harbor”, it does not seem safe at the moment. The latest data show that in July China's auto exports were 79,900, a year-on-year decrease of 11.6%, which is already a year-on-year decline in auto exports for the third consecutive month.

"In the first half of the year, the decline in vehicle exports exceeded the industry's expectations. This should cause concern for all parties," said Dong Yang, secretary general of the China Automobile Industry Association. The appreciation of the renminbi, the downturn in the export market, and trade barriers are important reasons for the continuous decline in auto exports. However, the more crucial factor is that the low-cost routes relied on in the past were difficult to sustain; independent brands relying on exports for internationalization began to encounter bottlenecks.

Automobile exports fell more than expected

Statistics from the China Automobile Association show that in July this year, the export of autos was 79,900 vehicles, down 5.4% from the previous period and down 11.6% year-on-year. Auto exports have been lower than the same period of the previous year for three consecutive months. From January to July of this year, the number of Chinese auto exports was 567,500, which was a year-on-year decrease of 2.2%, a decrease of 1.6 percentage points from the previous six months. This continuous decline has exceeded people’s expectations for this year’s auto exports.

“The decline in exports of self-owned passenger vehicles is not an isolated situation.” Cui Dongshu, deputy secretary-general of the National Passenger Car Information Association, believes that “In addition to the entire vehicle, auto parts exports are also rapidly declining, which shows the overseas competitiveness of the domestic automobile industry as a whole. Have to be improved."

In 2012, China’s total automobile exports exceeded 1 million for the first time, reaching 1.0161 million vehicles, a record high. Looking at the current situation, it will be difficult for auto exports to maintain a record high. Dong Yang also admitted that in the second half of this year, the situation of auto exports is not optimistic, and it is difficult to make major changes.

From January to June this year, from the perspective of the vehicle export vehicle export region, Latin America surpassed Asia in terms of export volume, with a total of 145,700 vehicles exported, a 40.9% increase over the same period of the previous year; North America’s export growth rate was higher, but the total Less than 10,000 vehicles; Asia, Europe, and Oceania, the larger decline in exports; Africa's exports increased by 5.9%.

Low-cost routes are difficult to sustain

The decline in auto exports in the first half of the year was caused by a number of factors. Some auto makers stated that the decline was due to the appreciation of the renminbi, the weak demand in the export market, trade barriers or other reasons, and the lack of competitiveness of independent brand products could not be ignored.

For a long time, China’s auto exports have been relying on low price tags, but they have lacked international competitiveness in terms of automotive product quality, technology, and energy conservation and environmental protection. This situation has determined that China’s automobile exports are mainly concentrated in price-sensitive countries such as the Middle East, Africa, South America, and Russia. These regions have large car demand, but their purchasing power is low, and their requirements on car quality and emission standards are relatively low. high.

The export business of our own brand covers more than 100 different countries and regions in the world. In the past, self-owned brands were often able to benefit from the new market, but now independent brands have entered the vast majority of emerging markets with potential, while mature markets in Europe and the United States are difficult to establish. This has determined that the low-cost route for independent brands is difficult to sustain.

It is precisely because China’s auto products have left a low-price impression overseas and it is easy to become the object of the international trade war. "The experience of China's auto exports is not abundant, and the technology is backward. It is not familiar with the legal environment, technical threshold, and product demand of export target countries. It is vulnerable to a variety of non-tariff barriers." Deputy Secretary-General of CUCC think. On the other hand, the active appreciation of the renminbi, which has gradually become more apparent since 2011, is an increasingly unfavorable factor for Chinese export enterprises. The renminbi appreciation process has just begun and is far from over. The challenges faced by exporting companies in the future will be even greater.

The difficulties faced by the export of self-owned brands are increasing. Various domestic and foreign factors are forcing Chinese export car companies to either increase the competitiveness of their export products, or to produce locally in overseas markets, and not only a simple CKD assembly, but also a higher local level. Rate. Chinese car companies rely on exports for internationalization, and have already encountered significant bottlenecks.

Internationalization needs to be considered

In general, the internationalization of auto companies has four stages: simple auto trading; local assembly attempts to localize; large-scale production, breaking the regional market; local development of products suitable for local consumers, and even creating a brand for the local .

The first steps in the process of internationalization are generally through the form of exports. At present, most Chinese companies are still in the export stage, and some companies are beginning to look for opportunities to establish C KD or SKD factories locally.

The international trade situation has determined that independent brands cannot always rely on exports to occupy overseas markets. “Domestic independent brands should not only regard export as the cornerstone of overseas strategy, but should plan for a long time, and bring localized production and localized R&D of overseas markets into the agenda at an early date,” said Sun Jian, a partner at Kearney Consulting.

It is worth noting that even if internationalization enters the CKD phase, there are risks. Chery is the largest domestic car company in overseas construction of C KD factories. Although it exported 69,600 vehicles in the first half of the year, it was down 25% year-on-year. “此前奇瑞在海外大量建厂，总体来看收益并不明显，这种情况值得警示。”崔东树说，对海外市场的把握和本地化的有效推进，是影响自主品牌海外市场表现的重要方面。

总体而言，“先有市场，后有工厂”是一种比较稳妥的规避风险的路径。尽管出口的增长机会可能越来越难，中国车企不能放弃这一探索。但是在这一过程中应该尽量重新审视进军海外市场的计划，应着眼于价值而不仅仅是低价位来重新定位品牌，从而提高定价能力和利润空间。