Although China's automobile market has not been warm this year, but compared to the European auto market dragged by European debt, the Chinese market still has great potential yet to be developed, for example, the PSA whose sales decline in the French auto body parts market, China's strategy started for revival plan for PSA Group, General Motors is confident selling more than 5 million goal in the Chinese market in five years. Fiat - Chrysler is dependent on the Chinese market to offset the impact of European car market downturn.
The joint venture car enterprises have double harvest on sales and profits in Chinese market
The Chinese market brings double harvest on sales and profits for the joint venture car enterprises, in addition to the strategy always focus on the Chinese market, they accelerate the footsteps to seize the domestic market and build factories. Following the Foshan factory of FAW-Volkswagen, Xinjiang factory of Shanghai Volkswagen began construction project, Volkswagen again build a new plant in China, Shanghai Volkswagen's new factory will be located in Changsha, the new plant of FAW-Volkswagen maybe built in Hohhot. On the contrast, the dependent brands are bitterly struggling, the fierce automobile market competition leads the joint venture car enterprises to decline on the layout of the product line. There is rare usual little joint brand less than 100,000 market, and now it is a share that the joint venture car firms do not want to give up. The market that the independent brands rely on to survive in the past appeared a large number of products of the joint venture, while consumers tend to choose the same price of joint venture cars.
Auto parts are the key to the survival of independent brands
In addition to the core technology, auto parts are also the key to the survival of independent brands. Dong Yang, secretary general of the China Association of Automobile Manufacturers, more than once lamented. The components are the basis for the development of the automotive industry, and also the short board for us to build strong auto country. For a long time, joint venture parts procurement rights are basically lies in the hands of foreign joint venture. Even if the profits of the joint venture thin, the foreign is still able to reap huge profits by control car body kits procurement system. Take Toyota for example, before entering China, laying out the first part of their own shares of the parts enterprises to the domestic market, so as to form a full-time supply. Honda and Nissan introduced cooperative suppliers before in the beginning of entering the Chinese market; which are mostly belonging to two institutional partners within the enterprise.
China's independent brand parts can only fight for market share by resources, and cheap labor
Due to the lack of independent research and development capabilities and core technology, China's independent brand parts can only fight for market share by resources, and cheap labor. Take transmission for example, the current status of the foreign automatic transmission cannot be replaced in the Chinese market, because the market share of China's self-developed automatic transmission is very low, the dependence on foreign capital will continue for a long time.
www.auto-bodyparts.net is concentrated on SUBARU exterior auto body parts' developing, producing, selling for almost 8 years, our items including bonnet, spoiler, side visor, front bumper guard, grille, roof luggage rack, door sill plate ,strut bar, carpet and some accessories about SUBARU car.
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