China's auto industry is facing a tide of restructuring
According to reports, the Chinese auto industry is facing a big tide of restructuring. Small car companies will bear the brunt of it
In 2007, the Chinese auto market once again faced a leap-forward development. In the first half of this year, the sales volume of passenger vehicles in China increased by 26%, maintaining an ever-accelerating pace of growth since the beginning of this century. It is expected that the production and sales of automobiles will reach or exceed 9 million by the end of this year. . However, with the mad introduction of automotive and non-automotive factors, relevant departments have begun to warn of potential overcapacity problems. Many professionals at home and abroad have also pointed out that there are too many auto companies in China, and the small scale and scattered investment are these The main characteristics of enterprises are those small businesses that will bear the brunt of the merger and restructuring that comes with market competition.
Too many car companies
According to statistics released in recent years, China currently has more than 130 auto vehicle companies, with the largest number in the world. According to statistics from the China Association of Automobile Manufacturers, sales of the top ten auto companies in 2006 accounted for more than 84% of the total. The remaining 120 vehicle manufacturers have a total sales volume of less than 1.2 million vehicles. The vast majority of auto manufacturers have annual sales of less than 10,000 vehicles, and at least dozens of vehicles. China has more than 80 domestic auto brands, and in the most developed American market, there are only 47 local auto brands. There are only 15 passenger car manufacturers in the United States, and China has reached more than 50.
A large number of companies participating in the same industry can indeed bring certain benefits, but too many companies involved in this means a lot of business overlap. In the first half of this year, there were 16 Chinese auto manufacturers with a market share of only 1% or less. Some companies have annual sales of less than 100 units. Even in joint ventures, there are such problems. Due to lack of competitiveness, they have not followed up with the fast-growing Chinese market. Joint ventures such as Nanjing Fiat have fallen to less than 1% of the market share. Concerned about its outsourcing of MG brand, Chinese and foreign parties have failed to make joint investment in Nanjing Fiat.
Mergers and reorganizations have begun
The automotive industry is the industry that places the greatest emphasis on scale and openness. According to the research report released jointly by the Ministry of Commerce Industry Damage Investigation Bureau and the China Automotive Technology and Research Center of the Ministry of Commerce, from the perspective of the status quo of the international auto industry, auto companies with an annual output of less than 1 million cars can no longer exist alone, and 2 million vehicles are also facing Restructure the situation. The relevant state departments have also been supporting the reorganization of domestic auto companies in recent years.
In fact, large-scale mergers and reorganizations have already begun. Such as Dongfeng Group's acquisition of Zhengzhou Nissan, SAIC's acquisition of Ssangyong, Rover, Chery, Brilliance's joint venture, Changan Automobile and Jiangling Motors' reorganization, etc., as the industry's operating environment becomes tighter and overall profit levels decline, competition will increase. Intense, intra-industry differentiation will be more obvious, some excellent companies will expand their leading edge, while others will step into the path of losses or mergers and acquisitions.
The biggest challenge facing China's auto companies after mergers and acquisitions will be the issue of going global, or the current path taken by the above steam companies. Before the acquisition of South Korea's Ssangyong, the merger and reorganization with Nanjing Auto will be the main purpose. More participation in international competition has become a real cross-regional leader in the global automotive industry.
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