How can auto companies enter the era of competition?


Although judging from an overall market, China's auto industry and auto consumption are still in the initial stage, which is similar to the situation in the United States in the 1920s. However, the leap-forward development has determined that the road to strengthening the Chinese auto companies must cross the threshold of integration, that is, change the past “one province, one car company, one place number brand” repeat production.

Just last week, Beiqi, one of the three small companies in the country, has also begun to seek integration. Its target is Fujian Auto Group, which is located in the southeast. Previously, the Dongfeng Group of the three major universities had come to an end with the purchase of Hafei. The Shangnan Cooperation also entered the post-merger restructuring process. From the second half of 2007, the domestic automobile industry has entered an era of intensifying competition.

At present, there are more than 130 automakers in China, the number of which is among the highest in the world. However, sales of the top ten auto companies in 2006 accounted for more than 84% of the annual sales. The remaining 120 automakers total With less than 1.2 million units sold, the vast majority of automakers have sales of less than 10,000 vehicles a year, with at least a few dozen. China has more than 80 domestic automobile brands, and in the most developed US market in the auto industry, there are only 47 local automobile brands. There are only 15 passenger car manufacturers in the United States, and China has reached more than 50.

Although the overall production capacity, the domestic automobile production and sales have surpassed Japan, and began to become the world's second largest automotive market. However, it should be noted that of these domestic automobile groups that produce and sell more than one million vehicles, most of the products are still within the framework of the joint venture company, and the real independent brands only account for less than 30% of the market share. The surge in the number of products, the wave of price cuts under increased competition, and the increase in production and marketing costs have led even big groups to fail to enjoy the "golden age" of profitability of joint ventures as they have done in the past few years.

At the same time as the development of domestic auto companies, the right to subsistence has once again been mentioned as a place worthy of attention. Depression in Detroit may be the foreseeable future of domestic auto companies. Judging from the laws of the development of the international auto industry, it is difficult for a car company with an annual output of less than 1 million to stand alone, and even a company with a scale of 2 million will face the situation of reorganization. However, the difference between mergers and reorganizations with overseas companies is that the integration of domestic auto companies has always had the "pushing hands" factor of the relevant departments of the country.

In fact, the restructuring of the automobile industry in the past two years has not stopped before the large-scale projects that companies announced earlier this year. For example, Dongfeng Group acquired Zhengzhou Nissan, SAIC acquired Ssangyong, Rover, Chery, Brilliance formed a joint venture, and Changan Automobile and Jiangling Motors reorganized.

These integrations become accelerators for industry differentiation and reshuffling. Through the operation of the capital market, the competitiveness of domestic auto companies will shift directly from the workshop and R&D center to the capital market. The vast majority of auto companies in China will face the ultimate test of “survival or destruction” in the next few years.

From the current point of view, the development of the autonomous auto industry dominated by state-owned capital does not appear to be blindly integrated. Major groups still maintain rational business judgments before the wave. Most companies select target objects according to their complementary advantages and their own characteristics. . It should be said that the degree of marketization is already high, and the domestic auto industry without monopoly has become the most important reason for enterprises to make rational judgments.

How many auto companies do China need? This is a very easy but difficult question to answer. Judging from current international experience, even in countries with the most powerful automotive industry, the number of independent companies will not exceed six. However, as a weak country in China, even after this round of competition and cooperation has been achieved, there are as many as dozens of companies. Obviously, the competition around automobile companies is a topic that will not stop for a long time. .


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