Do Chinese cars have to develop their own brands?
This is a confusing issue. Some people believe that if it manages its surname "middle" surname "outside", it will do well if it builds a car. Others think that Chinese auto must develop its own brand!
So why should we develop our own brand, in other words, where is the need to develop our own brand?
A certain German car brand requires that the construction and decoration materials of its Chinese stores must be imported from Germany; for a famous product, the price of spare parts supplied to China is much higher than its domestic price...
What does a brand mean?
Brands mean who owns the brand, who is the standard setter; who owns the brand, whoever has the right to choose; who owns the brand, whoever has the final say!
Therefore, in the CEOs I visit, the most supportive of self-owned brands is the Chinese CEOs of the joint ventures, because they have pains in their eyes!
According to the latest statistics, in the first half of 2003, the Chinese automobile market produced and sold 960,000 cars! This is an astonishing figure, as there were only 1.09 million cars sold in China in 2002. According to this trend, in 10 years or so, China's auto sales will exceed 10 million, and together with the United States, it will become the world's largest auto market.
When we are just a market capacity of 10,000 cars, we need to be open. When we have the demand for millions of cars, there is no independent brand. But when one day we have a market of 10 million vehicles, there is not a Chinese auto brand on the Chinese auto market. What will be the situation?
If this is true, it will not only be very sad, but it may also jeopardize the country’s economic security.
In 2002, China’s automobile output surpassed South Korea’s fourth largest in the world, but South Korea has modern (including Kia) and Daewoo. What about us?
The experience of South Korea shows that the development of independent brands must have strong support from national policies. At present, our policy is to support FAW, SAIC, Dongfeng three groups, and the three major groups have in fact been dismembered by the world's auto giants, and the tasks they once assumed to revitalize stock assets have been completed. They are burdened with too many heavy burdens. It is difficult to expect them to develop their own brands.
The national policies should support strongly the Chery, Brilliance, and Geely “other companies†of Chinese cars. Although these companies are still very weak, they are now taking the right road to their own brands and using a joint venture company. Chairman of the board said that these companies are taking "a giant step."
If within three to five years, China's own brands cannot develop rapidly, China will never have its own auto brand.
Instead of supporting the “big threeâ€, it is better to support “three alternativesâ€. That is the hope of Chinese cars.
View related topics: independent brands, where to go?
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