Prospects and Suggestions for Commercial Vehicle Enterprises in China Entering the French Market
Since 2003, China’s commercial vehicle companies have gradually explored overseas markets. Due to the price advantage of products, they have indeed been welcomed in certain countries and regions. However, we also have many problems such as quality, supporting maintenance and after-sales services, which have resulted in Our commercial vehicle exports are constrained.
According to the statistics of relevant domestic agencies, China’s auto exports continued to maintain strong growth in 2005, and the export volume of all types of auto vehicles reached 1.533 billion U.S. dollars, an increase of 159% year-on-year. Among them, commercial vehicle exports reached 1.17 billion U.S. dollars, accounting for 76.33% of total car exports, and 179 countries and regions were exporting countries. However, the vehicle export market is dominated by developing countries and regions. The first market for vehicle export markets is Syria, the second is Algeria, and the third is Belgium. Belgium is mainly because Guangzhou Honda has a factory there, exports or re-exports through Belgium, and is mainly a sedan, and the fourth is Iran. The fifth is Sudan, the sixth is Russia, the seventh is Vietnam, and the eighth is Kazakhstan, followed by Ukraine, Saudi Arabia, and Cuba.
From the above data on the annual registration of commercial vehicles in France, it can be seen that the annual increase of the French commercial vehicle market is about 460,000, of which 400,000 light commercial vehicles, 55,000 heavy industrial vehicles, and nearly 5,000 buses. However, almost all commercial vehicles are made in Europe. The number of foreign brands is so small that they can be ignored in statistics. We asked the French Automobile Manufacturers Committee that they said that so far no Chinese commercial vehicles have entered the French market. Of course, the international market needs a lot of space and there are many levels. This level and demand may not be what we expected. China's auto industry has obvious comparative advantages, especially reflected in prices. Therefore, if China's commercial vehicles can improve in terms of internal performance and quality, and can pass the French national standards test and certification, it should be able to enter the French market. However, over the years, China’s commercial vehicles have not been able to enter, which in turn explains some problems. In addition to the reasons for the French market itself, China’s commercial vehicles must also have certain fatal flaws. The French commercial vehicle market has been monopolized by European brands. To break this pattern, it cannot be changed overnight. Second, commercial vehicles, especially heavy-duty industrial vehicles and buses, have a higher technological content and stricter requirements for various standards and regulations. Chinese car manufacturing companies are worried that they may not be able to cope. In addition, the current market goals of China's auto manufacturing companies may still remain in some developing countries in Asia, Africa, the Middle East, and South America, and have not paid attention to the developed markets in Europe and America. Even in some of the peripheral markets of developed countries in Western Europe, countries such as Eastern Europe are still a blank for commercial vehicles in China. Finally, China's commercial vehicle exports are still stuck in the middle and low grades, coupled with the huge differences in brand building and service quality, so that China's commercial vehicles at this stage has not yet been able to foothold in the developed countries of Europe, the United States and other markets.
However, it is worth our attention that export of automobile products is an important carrier for China to transform the growth mode of foreign trade, and it is also an important aspect of our revitalization of the automobile industry. The government departments should take active and effective measures to guide and promote, improve the environment, and build a platform. , Strengthen service, standardize order, and achieve rapid development of the automotive industry through the efforts of the company. We are not experts in the automotive industry and cannot provide insightful views on the export of commercial vehicles from a professional and technical point of view. However, we may also suggest some suggestions on how China’s commercial vehicles will go out based on the status quo of French and other European countries’ markets and their development experience. .
(I) China is currently the world’s fourth largest automobile producer, especially commercial vehicles, which account for 13.8% of the world’s total production, ranking second, and has grown rapidly in recent years. However, although the export of commercial vehicles in China has shown a significant growth trend in recent years, the market share is very small. Taking the 2004 statistics as an example, China’s commercial vehicle exports accounted for only 0.43% of the world’s total commercial vehicle exports that year ($460 million out of US$107 billion). From the comparison between the two, we can see that the potential of our commercial vehicle exports is still very large, and there is enough space for market growth. If the company can maintain the cost-effectiveness of commercial vehicles, and the government can actively market and regulate the industry, it can cultivate China's commercial vehicles into a product with great potential and become a new bright spot for foreign trade growth.
However, there are still many problems in the auto export market. The road for Chinese auto exports is a long process. We are just at the initial stage in this area. China's auto industry must establish a complete and forward-looking export strategy while improving product quality, and strive to improve the automotive industry chain. In this regard, the government's wishful thinking cannot substitute for the pace of internationalization of the company, and must not be eager for quick profits and only pursue the quantity of exports and blind market share.
(2) At present, many Chinese automobile companies rely on vehicle sales as the main profit-making method. Due to the over-dispersed export market of China's commercial vehicles, vehicle maintenance, service, and spare parts supply are lagging behind. To a certain extent, it also hindered the further outward expansion of Chinese automotive products. Moreover, the climate and geographical environment of each export market are different. Vehicles of different export destinations should have different characteristics that adapt to local characteristics. When we visited the French automobile factory, we heard them say that there are several versions of the French car. The same model has different configurations because of different destinations. Therefore, Chinese exporters should take this issue into consideration and plan ahead to strengthen the adaptability of commercial vehicles to different markets. At the same time do a good job of market inspection, in the mature market to build their own sales network and various after-sales service system.
(III) Exports of commercial vehicles in China are currently increasing greatly, but their market share is small. Although Japan and South Korea have been wary of developing a private-label model from imitation, in fact, our automobile industry has not yet materially threatened the auto industry in developed countries. The central government must learn from the failures of other industries' export failures, introduce related policies as soon as possible, and effectively supervise and protect production enterprises. The production enterprises will authorize the sales and sales companies and foreign trade companies to prevent vicious competition. The so-called "national macroeconomic regulation and control, effective coordination of intermediaries, and strict self-discipline of enterprises," will be taken to actively increase the market access threshold, standardize export order, and solve the problem of internal competition that is extremely easy for Chinese companies to avoid, so as to prevent cars. The industry repeats the mistakes of textiles, footwear and other products.
(D), vigorously cultivate their own brands. The Ministry of Commerce can give priority to supporting my automobile production enterprises to participate in the International Automobile Expo, to display and publicize themselves through the international professional stage, and strive to create their own independent brands. Brand is intellectual property. In the era of belief in the brand's supremacy, the brand is a symbol of the spirit, but also reflects the added value of the product. The same is true of French spending habits. In the face of an unknown Chinese car, even if the price is cheap, most people will still turn to buy a brand car they are familiar with, because the brand is a guarantee of quality and a guarantee of safety. The Paris and Geneva International Auto Shows are good opportunities for exhibitors from Europe and the United States and local European consumers. Through comparison, they can find out the gaps in their design, performance and technology, and understand the current status of the international automotive market. The trend of development to better grasp the relevant market of the export market.
(e) The market access standards of European countries should be collected and organized to make good preparations for export. At any time, car manufacturers in Europe regard quality and safety as the life of a company. This is very different from the principle that the cost of automobiles in Japan is supreme. Therefore, European countries have many regulations and standards for the automotive industry. These standards are constantly changing and constantly updated. At the same time, at the EU level, there is a set of technical standards for the automotive industry. Therefore, these regulations, directives, and standards should be understood in advance so as to make it possible to know whether or not their products can pass their standards-compliant test tests, at least not so much. In the absence of any certainty, there is no need to do such a test of market access. It is time consuming, laborious, and costly. It is not worth the candle.
(6) Of course, government authorities can create more exhibitions or seminars in the international auto industry at home, creating a platform for more domestic companies to exchange and cooperate with international auto companies. At the same time, it can provide some preferential policies in R&D investment, export credit insurance, etc. to create favorable conditions for improving the technical level of the automotive industry and better promoting the export of automotive products.
(7) According to the relevant personnel of the Peugeot-Citroën Group, PSA is conducting discussions on multi-wheeled vehicle cooperative production with China National Aviation Group II, one of which is the establishment of a joint venture plant with a subsidiary of Havic Motors of AVIC II in a certain location in southern China. Manufacture of portable commercial vehicles designed for export. Although the two sides have not yet reached a cooperation agreement, this model may be another way for me to expand the export of commercial vehicles. With each other's brand and technology, while leveraging each other's global sales network. Through this move, I will improve my technical and management skills in the field of commercial vehicle manufacturing, and at the same time, more effectively break the barriers of my commercial vehicle exports.
(VIII) Drawing on foreign experience and ideas for my own use. The French Christian de Léotard research studio has introduced a new 6X6 concept vehicle that includes a variety of commercial vehicles. And the research room also made a special trip to introduce our concept design. According to De Léotard himself, he was commissioned by the French Ministry of Transport to design and improve a dual-use vehicle that can be used on both road and rail lines. The transmission cables on the railway line supply the power of the car through the electric bow of the roof, which can greatly reduce the pollution of the vehicle during transportation. At the same time, through a special device that guarantees the speed of transportation vehicles, the utilization of railway lines can also be guaranteed to the maximum. Because the project itself requires a lot of financial support, the French side hopes to cooperate with me for joint development. Although this idea of ​​the French side is currently like the Arabian Nightmare, we may wish to use it as a future direction for commercial vehicles. This kind of thinking may allow us to draw useful lessons from other aspects of design.
In the course of development over the next 15 years, China's auto industry will usher in development opportunities in terms of expanding market capacity, diversifying market structures, and dramatic changes in the industrial structure. At the same time, however, it will also encounter pressure and crisis from both internal and external sources. Therefore, China's auto industry must constantly improve its industrial competitiveness and innovation capabilities, and accelerate the pace of technical standards and regulations in line with international standards so that it can gain a place in the fierce international competition.
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