Ten years of self-owned brand

In the first half of the year, sales of self-owned brand passenger cars and market share dropped drastically. At this point, after the development of the Golden Year, the self-owned brand passenger cars began to gradually slow down the pace of rapid development and have gradually become weak.

Since June, high-end luxury imported cars have entered the Chinese market in a big way. At the same time, the prices of self-owned brands have continued to decline. The competition in the high-end car market itself is not fierce, and multinationals with more premium prices are able to control the Chinese market between their hands. China is entering the historical stage of mass consumption of luxury goods, and it is undoubtedly worse for domestic auto brands.

In the past ten years, China's auto market has seen an explosive growth over the past seven years. The fast-growing Chinese auto market has attracted the world’s auto giants, and its own-brand auto companies are also growing rapidly. Although the self-owned brand has achieved remarkable results in its development process, it has encountered difficulties such as the sharp decline in domestic market share and the frustration of exports abroad.

Before 2001, when Chery and Geely were still clamoring for a sedan, they would not expect that after a short period of three or four years, they would be able to squeeze into the mainstream of the Chinese car market. In 2005, Chery and Geely entered the top ten sales of passenger vehicles market, ranking seventh and ninth respectively. The successes of Chery and Geely have also driven the development of other self-owned automobile companies in China, and their own brands have become increasingly heavy in the automotive market. At the same time, the concentration of sales of self-owned brand cars is very obvious.

In the following years, the production capacity of self-owned brand cars in China had a certain degree of surplus, forcing domestic auto companies to look to the international market, so that the self-owned brand cars also appeared in the ranks of China's auto exports. The scale of self-owned brands was once unprecedented.

After the tide has receded, he knows who is swimming naked. Since the second quarter, self-owned brands have become increasingly chilling. Various questions accompanied with the development of independent brands surfaced.

Small-displacement cars are the dominant products of self-owned brands. After the small-displacement vehicle was lifted in 2006, it was once blown out and it was questioned because of poor safety. The government’s support is not enough, and the profits the company obtains are too small. Consumers’ failure to buy small-displacement vehicles has caused their lives in the Chinese market. Some even predict that small-displacement vehicles will disappear in 2010 at the latest. Although small-displacement vehicles have many advantages such as low price, fuel-efficient and environmental protection, even though experts and government departments unanimously promote the use of small-displacement vehicles, the reality is that sales of large-displacement vehicles and high-end vehicles that do not save money and save fuel are constant. rise. Since 2007, the domestic market for self-owned brands of small-displacement automobiles has shrunk.

In addition, self-owned brand cars have been criticized overseas. In recent years, although China’s auto exports have been small in number, they have seen huge increases. Moreover, Chinese autos have the advantage of being cheap, which makes international auto giants wary of China’s auto exports. Some national governments are also considering the protection of their auto industry. Chinese auto companies began to deliberately or unintentionally limit. U.S. General Motors CEO Wagner has openly stated that he will not ignore the existence of Chinese competitors and avoid repeating the same mistakes he made against Japanese and Korean companies. Under such circumstances, China’s auto companies have begun to encounter criticism from all sides while they are going abroad.

Chery was intercepted by GM globally. Chery and General Motors have had a long history of “revenues”. Since the debut of Chery’s QQ in the first half of 2003, the two sides have been fighting each other. By 2005, General Motors began to encircle Chery globally: On May 6, General Motors Daewoo Automobile and Technology, a unit of General Motors Corp., sued Chery for unfair competition and claimed 80 million yuan. At the same time, General Motors issued a lawyer's letter to Chery's distributor in the United States, VV2LLC, stating that Chery's English trademark (CHERY) and Chevrolet (CHEVOLET) are called CHEVY, and GM opposed Chery's registration in the United States with Chery. Sales, agency and all related business activities. In Malaysia, Lebanon, and other countries, GM also filed an intellectual property lawsuit against Chery. Both of these lawsuits have their own outcomes.

On November 18, 2005, General Motors and Chery Automobile reached a settlement, Chery finally successfully passed the intellectual property rights, but Chery spent a lot of manpower and material resources in the process of dealing with these disputes, marketing activities and construction in related countries. Plant plans have also been greatly affected.

Shuanghuan Automobile was blamed by Mercedes-Benz. In August 2007, Daimler-Benz and BMW planned to jointly prosecute China's Shuanghuan Automobile in Germany. The two major international automobile groups stated that Shuanghuan Automobile copied some of its models. BMW and Daimler-Benz Motors have publicly stated that if Shuanghuan Automotive will display its "plagiarism" version at any international auto show, BMW and Daimler-Benz will take legal measures to protect their intellectual property rights.

The road of independent brands abroad is rough and ups and downs.

Today, the status quo of self-owned brand development is worrying. Now that there are no internal and external concerns, if no effective measures are taken, the life cycle of self-owned brands will soon be put to a close.

First, the government has increased its own brand support efforts. If relevant departments of the state are brewing relevant policies and supporting the development of independent automobile brands, these policies will involve various aspects such as finance, taxation, finance, intellectual property, talent construction, and management assessment. The forthcoming policy will be to establish national special projects. Funds, the development of automotive core technologies; second, tax reductions and exemptions for enterprises that have achieved excellent results in independent development and independent innovation work, and provide certain import tax concessions for equipment, prototypes, and prototypes required for the technological development of these enterprises; Bringing self-owned brand cars into government procurement, etc. These are undoubtedly the strong backing for the development of independent brands.

Second, despite the thorny Chinese overseas brands, they ate “closed doors” in the Russian market, hit a gray face in the European market, and trapped behind flowers in the Southeast Asian market. . . . . . However, "going out" is irreversible. To reduce the risks of Chinese auto companies' overseas operations, we must improve the brand, technology, and quality. A relatively quick method is to use existing resources for self-improvement. The two joint ventures Shanghai Volkswagen and Guangzhou Honda promised to develop their own brands of joint ventures in the last two to three years. For China, this is an excellent opportunity to absorb and learn from it. China’s economic development is too rapid, and foreigners are naturally skeptical and frightened. The key is to get a car that is fully competitive in the local market. Price is by no means the only factor in winning.

Third, give full play to its advantages and make small-displacement cars bigger and stronger. In many countries and cities, road traffic congestion is very serious and the local government has begun to call for lightweight, small-displacement vehicles. For cities such as Cairo, Tehran, and Havana, the streets were blocked when the peak hours occurred, and small-displacement vehicles were advocated by the government. Car users often need to rely on U-turns and narrow roads to save time on traffic jams. Small cars are particularly flexible. Due to historical and other reasons, the auto industry in these countries is underdeveloped, and most auto products need to be imported. This has brought good business opportunities to Chinese auto companies and has made it possible for Chinese auto products to enter these markets. And the export profit of small-displacement vehicles is considerable. Overseas markets provide ample space for the development of small-displacement vehicles in China.

Fourth, improve the brand and develop high-end products. After consolidating the country's low-end car market, its own brand has started to point to the mid-size car market, and it has developed close competition with joint venture brands. Of course, if self-owned brands want to make a difference in the mid-level car market, they still need to work hard to improve their quality and shape the brand image as the top priority.

We have every reason to believe that the central government has strongly advocated the active involvement of large-scale backbone auto groups and private auto companies. It has a favorable public opinion environment and is recognized by a wide range of consumers. Autonomous brand cars will surely usher in China again. The spring of development.