China's auto industry has been included in the list of incremental controls.

On March 5, Premier Wen Jiabao of the State Council pointed out that it is necessary to focus on industries such as automobiles, steel, shipbuilding, and cement to control incrementals, optimize stocks, promote mergers and acquisitions, and increase industrial concentration and economies of scale. It is widely expected in the industry that in the future China's automobile threshold will increase, and that the vehicle license will be difficult to obtain, and today's auto companies will collectively usher in a major reshuffle.

Overcapacity is the reason why the auto industry was included in the list of regulations. From 2009 to 2011, China has become the world's largest market for car sales for three consecutive years. Cross-border car companies have invariably accelerated the pace of production expansion. According to statistics, in 2015, the capacity plans of China's Big Four automotive groups - SAIC, FAW, Dongfeng and Chang'an - totaled more than 21 million vehicles, and the total capacity planning of the top 12 companies in the sales volume reached 40.4 million. Li Weidou, general manager of China FAW Import and Export Corporation, said that in 2011, China’s total automobile sales were approximately 18.5 million units. In 2015, China’s auto market capacity was about 25 million vehicles. Compared with the capacity planning of more than 40 million vehicles, the auto industry’s production capacity The risk of excess increases.

A report shows that the maximum utilization rate of Chinese car companies (taking into account the maximum capacity of production lines after overtime) is not high, and many car companies already have excess capacity. According to survey data from 22 narrow car manufacturers across the country, its total output in 2011 was 10.27 million, accounting for approximately 84% of the national narrow-minded passenger car production (12.25 million). In 2011, the maximum capacity utilization rate of passenger cars was 78.5%, of which the maximum capacity utilization rate of joint venture passenger car companies was 84.6%, and that of self-owned brands was 60.2%.

And once China sets off a trend of auto production control in 2012, multinational car companies still outside the door may find it hard to survive. According to China's current policy, the automobile vehicle project settled in China must meet the relevant conditions and get the vehicle's Zhu Shengsheng. A number of car executives said that the vehicle license will become increasingly difficult to find.

The industry expects that the three major vehicle joint venture projects will be affected by regulation. First, Jaguar Land Rover intends to establish a joint venture with Chery Automobile Co., Ltd. The investment scale is 17.5 billion yuan, and the factory is located in Changshu, Jiangsu. According to the joint venture plan, it is expected that the first car will be off-line in mid-2014 and the production capacity will reach 80,000 by the end of 2015, with an output value of 40 billion yuan. After completion in 2018, the total annual production capacity will reach 180,000 units; Second, Chery Automobile and Japan In the negotiations with Subaru, both parties intend to invest 2.4 billion yuan to establish a joint venture in Dalian, and to produce Subaru models in China before 2016. Third, Mazda will form a joint venture company in China, Changan Mazda, after solo flying. By then, Mazda will no longer be attached to Changan Ford Mazda. For this reason, the Changan Automobile Group [5.05-0.20%] reportedly hoped that the company would obtain Chang'an Mazda’s permit for “Changhe Auto’s Qualification” but could not make it due to the shutdown of Changhe Auto.

When the car is listed on the incremental control list, the major car companies that apply for a joint venture permit are more nervous. An executive of a car company stated that China is the world's largest auto market. If it fails to settle down and misses the opportunity for localization expansion, the future competitiveness will be greatly affected.

Looking at the "two eyes," the "two sessions" of the two associations is the focus of the people's attention, and for the automotive industry, facing the low growth rate of sales of 2.5% for the whole year of 2011, the end of the period of high growth in the Chinese automobile market for ten consecutive years. In the face of the new round of adjustment that China’s auto industry has entered, the “two sessions” are both an exit point of view and a point of view, and they may be able to seek answers.

With the “two sessions” platform, representatives from the automotive industry across the country have submitted proposals and proposals related to the automotive industry, covering almost all aspects of the Chinese automobile industry. They are at the forefront of the automotive industry and reflect the most practical problem. We pay attention to the questions they raise and pay more attention to the answers to these questions.