Chinese auto parts enterprises urgently need to break through the internationalization

After more than 30 years of rapid development, the manufacturing capacity of China's vehicle manufacturers has been significantly improved, but there is still a large gap from the "internationalization." The Chinese auto industry, especially the parts and components companies in China, urgently needs to “break through” to internationalization, and must turn the market advantage into a brand advantage.

According to Liu Xiaozhi, the vice chairman of the China-America Automotive Exchange Association and founder and chief executive officer of Alslon Automotive Technology (Shanghai) Co., Ltd., China's products and markets have actually been internationalized, but more are foreign brands instead of Local brands, foreign brands currently occupy more than 65% of the market share, the so-called market competition, in fact, joint venture brands, international brands in China's competition.

Local market share of public opinion paradox

Then, does the development and expansion of self-owned brands necessarily mean an increase in the domestic market share? Liu Xiaozhi's answer is negative.

Take the U.S. market as an example. Around 1950, the three major car companies in Detroit, General Motors, Ford, and Chrysler occupied 87% of the U.S. domestic market, but now they have fallen to less than 45%. Looking at this group of data alone, the brands of the three major automobile companies in the United States are declining, but the fact is opposite. From a global perspective, the market share of the three major US brands is increasing.

"Using Buick as an example. Buick's brand is increasing its annual sales at a rate of 7%, which is a very good question to think about," said Liu Xiaozhi.

In addition, many British car companies have been acquired by car companies in other countries, but its brand is still there. For example, although Li Shufu has wholly acquired the British Manganese Copper, British Manganese Copper is still a British brand, not a Chinese brand. Liu Xiaoying spent many years in Europe and talked with some British friends about this topic. The British believe that our brand is still there.

Liu Xiaozhang sighed: "Every country has taken the automobile industry as its mainstay. People's lives can not be separated from the automobile brand. The car becomes part of it and follows this world to different places."

How to break through the internationalization

How to build a global brand is a proposition that Chinese car companies and parts and components companies need to think about.

"First, we need to be the product of the world, the brand of the world, not the product and brand of that country, the country; secondly we must constantly innovate and continue to operate." Liu Xiaozhi pointed out, "In addition to talent, knowledge, experience, and management, All aspects need to be accumulated. Without this accumulation, it would be very difficult to create a world-wide brand and a global product.”

The sales volume of auto parts in China is expected to reach RMB 3 trillion in 2013, which is a pillar industry, but at the same time, it is also the soft underbelly of the Chinese auto industry. Currently, among the top 100 auto parts companies in the world, Chinese companies do not appear. China Wanxiang Group, which ranks first in China's auto parts companies, has an annual income of less than 1/50 of that of global parts giants.

“We must increase the brands we make in China and the cars in the world. We have a long way to go because we are facing various challenges,” said Liu Xiaozhi.

Regarding the challenges faced by the auto industry, many people think that it is materials, labor costs, etc. However, Liu Xiaoling believes that the biggest challenges are understanding of automobiles, how to look at talents, how to accumulate talents, and how to develop core technologies not only from reverse development, but also The construction of the platform is well mastered, and at the same time, we must concentrate on expanding the global market and let the world gradually understand the cars made in China.

Liu Xiaozhi said: "Innovation must strive for excellence, quality and cost need to be improved, to achieve a solid management and efficient management capabilities. Only in this way, the Chinese car companies can build a world brand."