Driven by the “car to the countryside†policy, the mini-vehicle market has achieved rapid growth. According to the statistics from the China Automotive Association, the sales of cross-type passenger vehicles (minivans, minicars for short) from January to July were 1,090,600, an increase of 59.90 year-on-year. %, cumulative sales exceeded last year's full year.
However, under such a grand occasion, the mini-vehicle industry is brewing or has begun a large-scale restructuring and integration.
Micro-vehicles started earlier in the country and many different brands have emerged. With the structural changes in the automotive industry, integration in this field has been virtually uninterrupted, but the vibrations like today are unprecedented. The most recent related news is that GAC will reorganize the mini vehicle business of GEO Auto, BYD will purchase a mini-vehicle project for passenger cars in Hunan, and Chery, Haima, Lifan and others will take actions in micro-vehicles to see it as the future. A strategic focus.
Even more shocking rumors are that AVIC is in contact with Changan Automobile and intends to integrate its Hafei and Changhe into the Changan Automobile (it is said that this is the idea of ​​the Ministry of Industry and Information Technology). The direct result of this move is to take the most important domestic four. The three major brands in the micro-vehicle brand are integrated together to form a micro-car brand alliance.
Another significant mini vehicle company SAIC-GM-Wuling also reported unexpected news. It is said that its shareholder GM and SAIC intends to buy out Liuzhou Wuling's shares, thereby relegating the micro-vehicle business to its subsidy, and Liuzhou, Guangxi Province, intends to Abandon the micro-car to enter the car market.
Such drastic changes under great market conditions are indeed ridiculous, although difficult to understand, but this reflects the harsh reality that exists in this area.
The first is that the micro-vehicles that have spread in the past have not yet been completely cleaned. With the promotion of favorable national policies, many new micro-vehicle companies have emerged, such as self-owned brands, such as large state-owned enterprises like the Big Three Group. As a result, the industry has re-emerged with saturation risks. Despite the vast market, the production capacity still far exceeds the market demand.
Due to the excellent situation, Changan Automobile has decided to expand the production capacity of micro-vehicles to one million vehicles in the next two to three years; Changhe and Dongfeng will expand to 150,000; SAIC-GM-Wuling's second-phase project will be expanded to 900,000 units; Even emerging companies such as Gonow will form 250,000 microcar production bases; other microcar companies will sharply expand Hoho's expansion.
With the rapid expansion of production capacity, the excess concerns of the mini-vehicles have become apparent. For this, some companies have already seen it, while others have valued the considerable market space for mini vehicles. It is precisely because of the recent hot micro-vehicle that leads to “micro-vehicle shares; bullish, which has promoted the merger and reorganization of the micro-vehicle industry. In the past, some micro-vehicle companies that were not competitive and have been relentless have only been used as stepping stones to enter the auto industry. , In order to obtain a car production qualification.
In addition, although the micro-vehicle market is extremely hot, but it can not get rid of the status of low profits, far less than the production of cars, which is why everyone has to get involved in cars. Therefore, if you want to get a long-term development in the micro-vehicle field, you can get considerable profits, only small profits and quick turnover, through the scale effect to win, reorganization and integration becomes a must.
In addition, although the state encourages farmers to buy cars, it is very contradictory in proposing the development of mini-vehicles. Due to the low technical content of micro-vehicles (low barriers to entry), they are not prominent in energy-saving and emission-reduction. In the past, they were the focus of governance. Many cities have banned attitudes, so mini-cars also need strong strength support, such as the protection of technological renewal, and those small businesses can hardly achieve long-term development.
It was predicted seven years ago that mergers and reorganizations among minicar companies were imperative and would be further upgraded, and the possibility of a merger between the top five microcar makers would also emerge. However, most of the mergers at that time were passive, and now they are more of a positive impulse because the current mini-vehicle market has good prospects and is very attractive.
In spite of this, as almost all automobile manufacturers have begun to set foot in the micro-vehicle field, the intensity and scale of such mergers and reorganizations are still far from enough. The day in which the micro-vehicle crisis has become prominent will always come, and the relevant state agencies should take precautions against the micro-vehicle project. To control it, it is not advisable to let it drift, leading to an excess situation.
View related topics: China's auto industry recommence mergers and acquisitions wave
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