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The Chinese auto market entering the era of micro growth has tested the strength and resilience of major auto companies. In order to highlight their advantages in the new round of competition, auto makers, especially joint venture brands, have constantly adjusted their strategic positioning in recent years in order to find the best path for development. Before and after the Shanghai Auto Show this year, European Union, American, Japanese, Korean and other joint venture car companies have summarized their achievements and released their vision plans. While their strategic routes in China are clear, the new auto market landscape has also surfaced.
In order to highlight their advantages in the new round of competition, auto makers, especially joint venture brands, have constantly adjusted their strategic positioning in recent years in order to find the best path for development.
European car companies compete for new powertrain
European car companies that have a good reputation in the Chinese market have not satisfied the status quo. In recent years, European automobile companies, mainly German and French, have focused their business in China on the upgrading of powertrains.
The first to propose this strategy is the German Volkswagen. As early as 2007, Volkswagen's newly developed dual-clutch automatic transmission has already made its debut in China. Since then, with the popularization of the public, the "turbocharged + dual clutch" powertrain has been regarded as the hottest technology in the Chinese market, which has also greatly promoted the development of the masses in China.
Following the Volkswagen is the French Peugeot Citroen Group. During the Shanghai Auto Show this year, Dongfeng Citroen debuted the new Elysee. This is the global strategic model of the Citroen brand for the mid-size car market. Its 1.2T turbocharged and 1.6-liter gasoline engine attracts the most attention. As a matter of fact, as early as last year, Shenlong Automobile, which has always been considered to be "slowly tempted" in importing technology, has begun to rely on comprehensive upgrading of powertrain technology to complete new upgrades.
At last year's Chengdu Auto Show, Shenlong Motors released a powertrain upgrade strategy. As the curtain for the upgrade strategy, Dongfeng Peugeot first introduced a new upgrade 408, the gearbox was upgraded from 6-speed to 6-speed, and the engine was also replaced with a 1.6-liter gasoline direct injection engine in the EC series. At the end of last year, the 1.6T engine jointly developed by BMW and the French Peugeot Citroen Group was equipped with Dongfeng Peugeot's first domestic SUV model 3008. Subsequently, Dongfeng Citroen's domestic C4L equipped with EP series 1.6T engines was also officially launched. Since then, Shenlong Motor officially joined the "T" product army.
It is reported that in order to ensure the achievement of the strategic goal of “2015 production and sales scale of over 750,000 vehicles and 5% of market share†established by the “5A†plan for the mid-term business of the Shenlong Motors, in recent years, the pace of development of Shenlong Automobile has been accelerating.
According to the plan, it is expected that before 2015, Shenlong Motor will launch six new engines of EP, EC, and EB series, two new transmissions, and STT micro-mixing technology to achieve a complete upgrade of the powertrain technology. The core of this strategy is the Shenlong Xunyang engine project with the third plant of Shenlong Auto. The project was started in April 2011. After the completion of the project in 2015, the Fuyang plant will have an annual output of 1.2 million engines and 540,000 units of variable speed. The production capacity of the box provides the conditions for the complete upgrading of the powertrain of the existing products of Shenlong Automobile.
Jia Xinguang, an automotive analyst, believes that Shenlong Motors will usher in the most important strategic changes, namely, through the comprehensive upgrade of engines and carton changers, to compete with competitors in the competition.
U.S. car makers strengthen "Made in China"
Due to the weak sales of autos in other regions of the world, American automakers also regard China as the focus of the future and invest capital and technology to gain market share. Whether it is localization of GM, Ford, or Chrysler, who hopes to return to China, it will put the company's next development strategy into China, and the future "Chinese-made" vehicles will also become the main force of their growth.
“China is indeed in the stage of rapid development of industrial development.†Xiao Dawei, president of Ford’s Asia-Pacific region, has said that in the next few years, Ford expects 60%-70% of sales growth will come from the Asia-Pacific region, he believes, “Most of the Growth is still driven by China." With the gradual implementation of the “1515 Plan†of Ford Motor Company, Ford has entered the fast lane of development in China. Escort concept car, new Mondeo, Carnival ST, Ford all SUV models, coupled with the successful Fox in the Chinese market, Ford promised to launch 15 new models in China by the end of 2015.
According to Ford’s expansion strategy, the entry of the Lincoln brand, the doubling of dealerships, and the construction of five factories... These are just some of Ford's “radical strategies†in China. A more ambitious goal is that by 2015, Ford’s global sales will increase by approximately 50% to approximately 8 million vehicles each year, of which 70% of the growth will come from the Asia-Pacific region, while the Asia-Pacific focus will be on China.
After eight consecutive years of sales in China leading other multinational car companies, GM also recently launched the future development plan for the Chinese market and accelerated the 2015 GM's annual sales target of 5 million vehicles in China. Su Ruibo, president of GM China and chief operating officer of China, India and ASEAN, said that GM's business in the Chinese market and the entire automotive industry are at an important historical stage of development.
According to the plan, GM will launch a total of 17 new and upgraded models this year to further expand its product line in the Chinese market. Through the launch of more new models, GM will further increase its localized production capacity and continue to expand its dealer network. Su Ruibo told the Beijing Commercial Daily reporter that at present, General Motors' production base in China is near full capacity. Therefore, GM's joint venture in China has officially opened two new production bases and plans to add another four factories from this year to 2015. By then, General Motors' total production capacity in China will increase by 30% to 5 million.
It is worth noting that General Motors has taken China as the largest overseas investment and production and sales base in addition to the US market, and that the joint venture’s export of products to other markets has become an important deployment of the general global strategy. Su Ruibo revealed that GM will continue to expand the overseas sales of cars produced in China this year. It is expected that the number of cars exported from China this year will reach 130,000.
In comparison, Chrysler, as a slightly "niche" brand, prefers to use localization strategies and return to the mainstream car market in China. In the past year, Chrysler, especially the JEEP brand, has been operating in China. The JEEP brand has grown continuously for 24 months and achieved a 107% growth last year. Despite this, Zheng Jie, President of Chrysler (China) Automobile Sales Co., Ltd., still said that the 2012 results did not satisfy Chrysler, and the lack of capacity was the biggest regret.
According to the plan, JEEP will surely be made in the future. Chrysler is currently working with GAC Group to build a future management team structure, select local talent to manage local production. Zheng Jie said that JEEP's road to localization in China will sooner or later. Chrysler’s vision in China is to make Jeep a brand leader in SUVs. Therefore, realizing local production as soon as possible will be the biggest challenge for Chrysler.
Japanese car prices hit green card
Japanese brands that experienced a sales crisis in China did not slow down the pace of development. On the contrary, Toyota, Honda, Nissan and other Japanese car companies are collectively fighting for green cards with the leading technological advantages of new energy vehicles, including hybrids. Take a quicker turn in the new round of competition.
It was Toyota that had the biggest action and showed its attitude first. On March 1 last year, Toyota launched a high-profile cloud initiative in China, and at the same time released the concept of "double-engine" that represents the trend of hybrid power technology. Since then, Toyota executives have repeatedly stressed on different occasions that Toyota's hybrid power is a technology that takes into account both tradition and the future, and is a technology that can truly help Chinese consumers to implement energy-saving and emission reduction in Chinese society.
In the past year or so, Toyota and its joint ventures in China, FAW Toyota and GAC Toyota, have been pushing ahead with the cloud initiative. In order to allow more Chinese consumers to own hybrid vehicles, Toyota has established Toyota China R&D Center in Changshu, China, and is responsible for the localization of the Toyota Hybrid Core Assembly. It is reported that Toyota's models equipped with domestic hybrid powertrains will be launched in 2015 and the price is expected to drop substantially.
Looking at Nissan again, the emphasis on China, its largest global market, is even more remarkable. New products and advanced technologies have always been the focus of Nissan’s promotion in China. In fact, since the introduction of its products to China for the first time 40 years ago, Nissan’s expansion in China has never stopped. Today, the annual sales volume of Nissan Motor in China has reached 1.18 million vehicles, which further stimulated it to spare no effort to introduce the most advanced technology into China.
“We will continue to maintain our leading position in the field of zero emissions,†said Andy Palmer, executive vice president of Nissan Motor Co., in an interview with Beijing Business Daily. Nissan hopes to maintain a 10% market share in the Chinese market. The strategic direction of development is not changed by anything. Especially in the field of new energy, Nissan will bring the latest and best products to China to maintain its leading position in the industry.
Honda's development strategy in China also revolves around upgrading the new powertrain technology for environmental protection and energy conservation. According to Honda China's Minister Kurashiki Seishi, from this year to 2015, Honda will launch more than 10 new models in the Chinese market continuously, and adopt a new generation of engines, and “EARTHDREAMS TECHNOLOGY†with excellent fuel economy and power performance. "The engine will begin shipping on the new generation Accord.
Korean car company to enhance the brand image
In the past, the Korean brand, which relied on economy to attract consumers' eyes, began to focus its efforts on brand promotion after it had a certain market share. In recent years, we can see that whether Beijing Hyundai or Dongfeng Yueda Kia, are making great efforts to upgrade the proportion of high-end products in order to promote the brand image is constantly upward.
Ten years after entering the Chinese market, Beijing Hyundai executives stated that now the company has entered a new stage of development of “brand-drivenâ€. This year marks the beginning of the new decade of Beijing’s modern development. It is defined as “the brand's first year,†and the key to improving the brand is reflected in the proportion of model sales. It is reported that, with the sales of the new Shengda and the listing of the 2013 eighth-generation Sonata, the proportion of Beijing Hyundai D+S (middle and senior car + SUV) is further increasing. Relevant person in charge of the company predicts that this year, with the completion of millions of production capacity, the number of modern users in Beijing will exceed 5 million.
In the following 2015, Beijing Hyundai will achieve two “double-up plansâ€, that is, the production and sales capacity will double to 1.4 million, and the proportion of middle-to-high-end products will double to more than 50%. By 2017, on the occasion of the 15th anniversary of the establishment of Beijing Hyundai, the 10 millionth vehicle will be off the assembly line and a second leap will be achieved. An interview with a reporter from the Beijing Commercial Daily found through an interview that with the new products, brands and services, Beijing Hyundai has full confidence in the prospects for the development of the new decade.
In China, Dongfeng Yueda Kia, which is also standing at the beginning of the new decade, is the same as Beijing Hyundai, placing its brand image in the most important position. Last year, Dongfeng Yueda Kia achieved a sales target of 480,000 yuan, ranking among the top seven in the industry, and also ranked sixth and eighth in the industry in terms of sales satisfaction and after-sales service satisfaction index surveys. In the first quarter of this year, Dongfeng Yueda Kia completed sales of 137,000 units with a year-on-year increase of 26%.
This year, Dongfeng Yueda Kia further focused on the "customer first" core value, and further put forward the "Customer Touched Year" management policy. According to reports, following the service philosophy of "caring, responsibility, and trust," Dongfeng Yueda Kia will continue to develop social responsibility activities, as well as marketing and development in sports and culture, creating a sense of responsibility, youthful fashion, and Vitality" brand image.