Automotive companies face development opportunities analysis

In 2009, China's auto market continued its strong growth in the shadow of the global financial crisis. Its production and sales exceeded 13 million vehicles, surpassing the United States as the world's largest auto market. 

The huge scale and rapid growth of the Chinese market have brought excellent opportunities for local auto manufacturers. After nearly a decade of hard work, Chinese domestic auto manufacturers have occupied about 30% of the market share in China. In 2009, the sales volume of local auto companies increased by more than 60%. At present, major auto companies actively take actions to capture new demands from consumers in different regions and at different levels, make full use of preferential policies provided by the government to promote sales, and seize domestic market share.

However, during the development process, Chinese automakers will also face severe challenges. On the one hand, the brands and products of international automakers are still monopolized. At the same time, foreign auto manufacturers have increased their attention and investment in the Chinese market, and they have continuously introduced new products. The market competition has become increasingly fierce. On the other hand, the current development strategy adopted by domestic auto manufacturers is often lacking in sustainability, for example, concentrated in the development of low-level cities because their products are more in line with the requirements of local consumers; they mainly provide small cars equipped with small engines because these models Can enjoy the government's tax subsidies and so on. 

Through research on global leading auto companies, we have found that they all have more or less success factors in the following seven areas:

1Technology development and accumulation;

2 Accurately cut into the market/successful model building;

3 focus on quality;

4) Strictly control costs;

5. Establish a mature parts system;

6 brand strategy;

7 expand international market. 

Compared with the leading automotive companies in the world, domestic auto companies still have considerable gaps in many aspects, especially in technology development and accumulation. Some leading local automobile manufacturers have realized the strategic significance of core technology for the long-term development of the company, and have established independent core technologies through various methods. However, most local auto manufacturers are still trying to figure out how to build the core technology in the initial stage, then expand the business and grow rapidly.