129750133906875000_32011 China's automobile exports reached the highest level in history, with vehicle exports amounting to 849,500 units, an increase of 50.03%. The export value was $10.951 billion, up by 56.74%. Both quantity and value surpassed those of 2008, hitting a historical high. Among the fastest-growing car brands, a total of 372,100 vehicles were exported, doubling the previous figure, ranking first in terms of export growth. However, there remains a huge gap between China’s automotive product exports and world standards. Data shows that in 2011, Germany's auto exports accounted for 75% of its total sales, Japan's for 65%, and South Korea's for 50%. In contrast, as the world’s top automobile production and sales powerhouse, China only accounted for 4%.
In today’s global market, where economic recession prevails, Chinese main brands are weak across all aspects. Their export operations are still in the "testing" phase. This state of extreme nervousness has become a thorn in their side, needing to be quickly eliminated. Maerqiaonei ignited the fire, BBC criticized, and together they attacked the brand's exports. Fiat Group Chairman Tom Malchow initiated a boycott of own-brand cars in China, stating: even if 10% of production is used for exports in China, it still poses significant risks in the local market. According to the proportion of multinational car exports, 10% is just a very small target. Chinese cars' overseas exports will eventually break through this ceiling.
Maerqiaonei's representative also revealed some of his own weakness, being weak yet attempting to block others' paths ahead. As early as when Maerqiaonei proposed the "China threat theory," Fiat and Chrysler in China were suffering from a rare "freeze." In the first half of 2011, the domestic sales volume of these two companies was less than 15,000 units, which was an extremely embarrassing performance for Tom Malchow. In August 2011, Brazil's mainstream automotive media awarded CARRO Brazil's top 10 entry-level models on the market, with Chery QQ ranked first, while Fiat came second. This market report card did not come to the company, excluding others naturally poured in. The issue is that the "Chinese steam Threat" has much relevance. These words called fairness and impartiality are not traditionally keywords in market competition.
Coincidentally, Maerqiaonei took the opportunity of own-brand cars in China's exports. In the field of automobile manufacturing industry, the UK had been militarily defeated. It is neither cowardly nor pretending to ridicule but rather criticizing China's own brand "on Shabu Shabu." The UK's BBC Top Gear program produced a special on China, featuring pranks involving a self-owned brand automobile in China. In the program, China's self-owned brand automobile was described using torts, patchwork, and more derogatory terms. Such practices, if not aimed at positively correcting the growth of China's own-brand cars, are merely attacks and fights.
In the automobile manufacturing base, selling a senile old man to a toddler later without losing a block represents several major motivations for self-owned brand automobiles taking the road of exports according to the normal path of TNCs expanding abroad. They fully hatch in the market when mature, then expand into overseas markets. However, China's self-owned brand automobiles follow the opposite path. Given the domestic brand product and brand power of automakers, why explore overseas markets instead of focusing domestically?
There are several reasons for this approach: First, utilizing the international market to quickly enhance the brand. According to the general pace of development, independent brand enterprises find it difficult to enhance their brand in the domestic market. Brand promotion is blocked, and there's no premium. Thus, they collect a "diploma" in overseas markets and auto shows, gaining approval given in days gone by, embarking on a rapid product promotion road.
Second, already having a foundation in the domestic market, especially in the low-end segment, they can align with developing countries' low-end domestic markets or open third-world markets, occupying the lower end of overseas markets. Companies like Chery, JAC, Thai public enterprises, ZTE, Lifan have pioneered this approach.
Third, early military training in overseas markets broadens horizons and builds team experience, which will benefit future overseas expansion. Almost all independent brand enterprises attempt this, as China becomes an automotive power; otherwise, there's no way out.
Visionary independent brand enterprises, while struggling to open domestic markets, must make such moves earlier. Fourth, in the domestic market, competition and joint ventures treat domestic companies worse, forcing independent brand enterprises to go outside. Last year in October, during the "steam on the wheels of Chinese" interview with Yin Mingshan in 15 provinces, we cautiously asked about the age of Conan gold. Like Lifan brand vehicles, there's no advantage in the domestic market, so what advantage would there be in exports? Since the domestic market is also the "stones" enterprise can survive internationally. Yin humorously responded that overseas markets are not as sinister. Overseas markets are fair; as long as your product and business are solid, you'll receive fair treatment unavailable domestically. We interviewed Huatai, JAC, ZTE, Chery, OWL Dragon enterprises, who shared similar views.
Efforts to develop overseas markets, speeding up hatching in today's most powerful local markets, involve several large multinational companies. Did any start without the domestic market? And which one didn't rely on the domestic market to ascend? Without exception, home markets are the birthplace and incubator of major multinational automotive companies. If our independent brand enterprises don't fully develop and grow domestically before venturing into overseas markets, one or two countries might reject them now. Three-country protectionism can strangle them at any time, and four states might face war or unrest, jeopardizing investments.
Chinese independent brand enterprises, especially passenger car brands, should practice going overseas, making contact-impact a positive attitude in the international market. However, wanting to "steal" overseas market fruit isn't a broad road. Our biggest question now is whether we want our own automobile industry in China, a matter of national policy! In the United States, the three leaders left the hand of the government as the overlord worldwide. Amid today’s fierce market competition, the U.S. Government reflects on giving up manufacturing errors, constantly feeding, blood transfusions, and hatching again. When Japanese household appliances attacked the U.S. market, they scattered problems around. If not for the Japanese Government acting as the "Commander of the combined fleet" for organization and coordination, could enterprises alone dominate Sony, Toshiba, Panasonic globally?
How to support and grow our brands in the market at our own door, led by the Government, conducting orderly overseas market development is the way of branding. Chinese competition is a very frightening thing, something enterprises alone cannot solve mutual accommodation. Therefore, representing China's national automotive industry independent brand enterprises' future sea outreach solutions, one must rely on their own efforts, and the second is to see how the Government treats and supports the matter.
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