China's auto industry concentration is less than 3% of the United States

At the "2010 China Automotive Industry Development International Forum", Zhang Baolin, deputy secretary of the Changan Automobile Group Party Committee and president of Chang'an Automobile Co., Ltd., said that at present, the Chinese auto industry is facing many problems, and the problems such as irrational industrial structure and imperfect industrial chain are particularly prominent.

Zhang Baolin stated at the forum that in 2009 China's auto production and sales figures were more than 13.6 million, and this figure was contributed by as many as 168 domestic vehicle manufacturers. In the U.S. market, the production and sales figures for more than 13 million vehicles actually require only five companies, including General Motors and Ford Motors. According to this calculation, the concentration of China's auto industry is only 2.9% of the US market.

The industry insiders attending the forum generally agree with Zhang Baolin's point of view. They believe that the Chinese automobile industry has a significant gap with the United States and Japan in terms of concentration, etc. These pending issues will have a far-reaching impact on the future development of China's auto industry.

Concentration of car companies is much lower than that of the United States. In today's "2010 China Automotive Industry Development International Forum", Zhang Baolin, deputy party secretary of Chang'an Automobile Group and president of Chang'an Automobile Co., Ltd., said that as of 2009, there were 168 vehicle manufacturers in China. There are 79 car companies that have been included in the statistics of the China Association of Automobile Manufacturers. Of these 79 companies, only 57 have a capacity of more than 10,000.

“We believe that the production and sales of automobiles in China and the US are quite similar in recent years, but the number of auto companies in China is relatively high and the degree of industrial concentration is very low.” Zhang Baolin said, “At the same time, China’s spare parts industry, the market share of the top 100 companies. Only 50% of the entire industry, far below the concentration of the United States, Japan."

According to published data, China became the world’s largest automotive market in 2009, with sales and sales exceeding 13.6 million vehicles. However, this figure is actually contributed by as many as 168 domestic vehicle manufacturers in the country. In contrast, the US market sold less than 11 million vehicles in 2009, but this figure was completed by five manufacturers including General Motors and Ford Motors.

The comparison of the above data shows that although the phenomenon of multiple, small, scattered, and chaos in the development of China's auto industry has changed, the concentration of auto industry in China and the United States is still very different, and the waste of resources in the domestic auto industry is still quite high. serious.

Insufficient investment in R&D hinders the development of independent brands. For those independent brand manufacturers who are used to flaunting senior R&D capabilities, Zhang Baolin poured cold water on them.

According to a survey data disclosed by Zhang Baolin, the proportion of R&D investment in domestic brands to sales revenue is still at a relatively low level. “From the proportion of R&D investment to sales, most foreign companies’ R&D investment accounted for a large proportion. It is 3%-6%, while the domestic industry is 1%-2% (average)."

In terms of the allocation of R&D personnel in auto enterprises, the Chinese auto industry also has major problems. Zhang Baolin said that at present, multinational automotive enterprise groups, such as General Motors and Toyota Motors, have R&D personnel accounting for about 10% of the company's employees. However, in China, of the 100 auto industry professionals, less than 5% actually engage in research and development.

The lack of investment in R&D directly affects the market share of self-owned brands. Zhang Baolin said that in 2009 the domestic auto industry’s own brand market share accounted for about 44%, but in 2010, this market share has begun to decline.

According to the August China Automotive Industry Development Information Report released by the China Automotive Technology and Research Center this week, China’s own brand passenger car market share has been declining month by month since June.

Among them, the market share of self-owned brand passenger cars in August was 37.90%, and the market shares of Japanese, European, American, and Korean were 23.15%, 19.27%, 11.13%, and 8.55%, respectively. The market share of self-owned brand cars fell for two consecutive months, a drop of 0.69 percentage points from July, and a decrease of 1.55 percentage points from June.

The domestic auto industry chain is still to be improved Zhang Baolin believes that although China has become the world's largest auto market, the Chinese auto industry still needs to face the fact that the auto industry chain is missing.

“From the front end, basic research is relatively weak, and the importance attached to independent innovation and future development is not enough; the basic capabilities of the mid-tier are not strong, and the core components and parts related to the entire vehicle industry cluster, production supporting facilities and equipment need to be developed; and The back-end, like the used car, auto finance and other auto after-markets in China should be said to have just started.” Zhang Baolin said.

Zhang Baolin said that in the international mature automotive market (such as Europe), car rental business can account for almost 50% of the entire industry, but currently only 15% in China. As for spare parts business, Japanese auto companies can reach 80%, while China currently only has 15%.

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