Car “Made in China” Breakthrough in Anhui Province

More and more Chinese automakers have gone abroad, and from the sedan to the truck, from light to heavy, the products of Anhui enterprises are leaders and the first to swallow.

According to the latest data from the National Development and Reform Commission, Anhui production enterprises for transport vehicles entered the top ten, passenger cars entered the top five, and commercial vehicles entered the top three. In addition, according to authoritative statistics from the statistics department of Anhui Province and the Chinese automobile industry, from January to October this year, from Hualing Heavy Truck, JAC light trucks to Chery cars, Anhui automobile exports have all increased significantly. In the first nine months, Chery Automobile exported a total of 77,000 vehicles to overseas, an increase of 208% compared with 25,000 in the first three quarters of 2006, and it once again relied on the export volume of domestic passenger car companies. First, it is far ahead of other domestic passenger car companies. At this point, Chery has been ranked as the largest exporter of passenger cars in China for five consecutive years. JAC light trucks exported a total of 13,000 units, an increase of 162% over the same period of last year and a full 100 percentage points higher than the average national growth rate. The company achieved sales revenue of 800 million yuan, a year-on-year increase of 210%, ranking first in the country for six consecutive years.

The rising star Hualing heavy truck came out with the first heavy truck in March 2004, which only doubled from the same period of last year when exported to Russia, and the total number was more than 2,000. As of mid-August, the production and sales volume of Hualing heavy trucks both exceeded 8,000 units, and the target of completing 12,000 vehicles for the whole year has reached a foregone conclusion, and will double again on the basis of last year. According to Lu Youlin, deputy general manager of Anhui Hualing Automobile Co., Ltd., according to the current good situation, this year, the production and sales of Hualing heavy trucks may reach 13,000 to 14,000, and is expected to rank among the top six in the domestic industry.

The rapid growth of auto exports from light to heavy has increased the volume of imports and exports in Anhui in the first 10 months, ranking first in the six provinces of central China. Anhui is a large agricultural province, and the level of urbanization in the entire province is only about 35%, ranking the lower reaches of the country. The automotive industry is a collection of high technology such as electronics, materials, manufacturing, and design. It is a symbol of the country's major industrial level of equipment. More than a decade ago, the “Made in China” strode out of the era of the country, the car is still a luxury in the country, and the Chinese city road has the nickname of the “International Auto Exposition”. At present, the car "Made in China" has taken the lead in Anhui, a major province of agriculture.

Break the superstition, break through the encirclement, and make a foothold on the national brand.

The superstitiousness of the automotive industry is a worldwide one. Cloaking the cloak of scientific research has almost been recognized as an irrefutable truth.

As early as the middle of the last century, the automobile industry's "mature technology, mature market," and "become a latecomer to death" were full of domestic and foreign arguments. Research experts and the public opinion of the automobile industry: The automobile manufacturing industry can only accommodate GM, Toyota, Volkswagen and other three major three small, no more market space, the latecomers can not compete with the former. In the 90s of last century, despite people's lagging behind, Santana sold more than 200,000 yuan and was dissatisfied with many words. However, the large planes that make up the "Yunji" prototype have all been dismounted. Who else can certify that the international automobile market can have "Made in China"? So "using the market for technology" seems to be the only way out. Companies such as FAW and Second Automobile Co., Ltd. that manufacture top-column pillars of domestic auto companies have jointly ventured with foreign auto giants to produce Chinese-made foreign brand-name cars. At that time, there were also restrictions and monopolization policies on "borrowing foreigners" for the use of licenses and joint ventures in the country: "Three major three small": Shanghai Volkswagen, FAW, and FAW, with Tianjin Xiali, Beijing Jeep and Guangzhou Peugeot. Some prominent domestic experts assert that "China must develop its own brand cars for 30 years in joint ventures and 20 years of development, otherwise it will only be Tianfang night talks." The reporter learned from the interview that until 2003, Volkswagen branded products sold in China accounted for 20% of the world's sales, but provided 80% of its profits.

Breaking the foreign superstition began with Chery in Wuhu, Anhui Province. At that time, some of the key enterprises in Wuhu City, Anhui Province and Anhui Province, on the basis of in-depth investigation and study, determined that the current view of the automobile industry is “foreign superstition” rather than an economic law. He decided to build Anhui Province Chery Automobile Co., Ltd. in Wuhu. In 1997, Chery laid the first pile in the domestic market. Eight experts who are now general managers of the company, such as Yin Tongyao, are experts and technicians who are determined to “automate the country”. They have gathered from all parts of the country to an abandoned brick and tile factory in the northern part of Wuhu City and started to design Chery’s first sedan by borrowing computer equipment. . In 1999, SAIC Motor began affiliating with the SAIC Group to produce a sedan-branded car named “Shangqi Chery.” Large companies and large corporations in the domestic automobile industry did not recognize this company as a “little brother”. In March 2001, after four years of hard work, Chery independently developed the first domestic brand car "Feng Yun" and finally got permission to go public. The price is only two-thirds of that of Santana and Jetta. The extremely high performance-to-price ratio has immediately broken the pattern of domestic cars’ prices and has updated the concept of sedan consumption by the Chinese people, which has aroused strong repercussions in the domestic market. In the year, 28,000 vehicles were sold and sales reached more than 2 billion yuan. In 2002, Chery's sales exceeded 50,000 units and its sales revenue reached 5.2 billion yuan, making it one of the top ten cars in China. German Volkswagen publicly acknowledged that the emergence of Chery directly offsets the sales of some of Santana and Jetta’s sales forces, creating competitive pressure on them.

In early 2003, Chery announced the launch of a 1.3-liter displacement home QQ car. At about the same time, a domestic joint venture with multinational companies plans to launch a new car with the same target market. In order to gain market opportunities, Chery’s determination and courage to fight back and forth, and work together to launch the QQ car more than half a year earlier than originally planned, was priced at 49,800 yuan, which is only two-thirds of the joint-product target price. According to the authoritative "China Automobile Intelligence" magazine statistics, after the joint venture product launch, monthly sales volume is only one-eighth of QQ. This is the first time that the models launched by multinational corporations in the Chinese market in the past 20 years have been hampered by self-owned domestic brands.

Since then, Chery has launched more than 10 self-owned brand cars, such as "Eastern Sons" and "Tiger Tiger", from low to high, from family car to off-road models, and all-around foreign brands.

Chery produced and sold national brand cars at roughly one-third the price of the same model, and was initially blocked by multiple processing equipment, spare parts, markets, public opinion, and even the judiciary. In 1998, for the first time, the China-Japan Friendship Association coordinated the organization to go to Japan to purchase spare parts. The 26 auto parts companies that were invited to participate in the decision were involved. Since they received a letter of concern from a large company, only one person was sent to the company. Yes, the procurement work is not successful. At the birth stage of Chery, the major foreign brands and their agents in China intentionally or unintentionally promoted the use of intellectual property infringement lawsuits against Chery to exert pressure on public opinion. The rapid development of China's machinery industry and the strong manufacturing base of the Yangtze River Basin have enabled Chery to survive this.

After all, the market economy has its own laws. The reduced price of the sedan opened up the space for Chinese cars to enter the family, and the market space was attractive. After Chery's own production exceeded the minimum production line, foreign auto parts companies took profits and by 2003, the encirclement did not break.

In Hefei, the capital of Anhui Province, Jianghuai Automobile, with its stronger automobile production and manufacturing capabilities, adopts circuitous tactics: choosing light trucks and eating at a low profile. Its direct competitor is Suzuki famous brands such as Japan. Although there was no publicity campaign and even it was difficult to find long articles or comprehensive reports in the media, Jianghuai Automobile occupied the domestic market little by little for 10 years and gradually went overseas. In this century, its performance has been ranked in the top ten in China. It is the only car manufacturer in the top ten who does not have car types. However, after the time was ripe, Jianghuai Automobile entered the passenger car market with high quality. In the past three years, the “Ruifeng” passenger car has become the first of its kind in the country. In the past year or so, high-quality SUVs and cars have also been introduced. Recently, the heavy truck production base began to build; Anhui Hualing Motors Co., Ltd., which is about 50 kilometers away from Chery, under the guidance of the young and old brother Chery, has been holding high and making huge achievements in China's relatively weak construction vehicles and heavy trucks.

Make full use of the advantages of world economic integration, seize strategic opportunities and realize catch-up

Zhan Xialai, member of the Standing Committee of Anhui Provincial Party Committee and Party Secretary of Wuhu City, is the chief planner of the development of self-owned brand cars in Anhui. In an interview with reporters, he said: China has the conditions to make breakthroughs in the "Made in China" car. First, use the talent advantage under the conditions of integration. The introduction of technology and talent accumulation in return for the introduction and joint venture production in 20 years is a valuable asset for the development of the national car industry. After the reform and opening up, hundreds of thousands of Chinese students have studied and developed in developed countries, and quite a few have become the backbone of technology. Many of them are eager to enter the country and have passion for entrepreneurship, forming a potential talent pool for the development of the national automobile industry. At present, Chery Automobile Co., Ltd. has introduced dozens of “returnees” talents and other high-end talents from the United States, Europe, Japan, and South Korea’s major national auto companies through various methods such as introduction and hiring. They brought a wealth of the latest information and technology in the international automotive industry, and quickly became the new force for Chery's independent development. Second, the use of economic integration under the conditions of international automotive design accumulation, equipment accumulation, high starting point, high standards. Today's independent innovation in the automotive industry is not "self-innovation" in the past closed state. In the process of innovation, we should be keenly aware of the opportunities brought about by the new round of global economic restructuring, the auto manufacturing industry, and the trend of integration of technology. We should not only adhere to me, but also have a broad world perspective and be more open. We have taken full advantage of various technologies and resources that can be used for what we have used globally, and have greatly accelerated the pace of our own research and development capabilities. In this sense, Chery’s independent innovation is precisely at a higher level and at a higher level, and bolder opening to the outside world. Finally, the overcapacity of the world's design and manufacturing markets and the significant increase in the level of Chinese equipment manufacturing have given us a good starting point in all aspects of automobile manufacturing.

Chery’s local government investment background makes it possible for companies to capitalize on the advantages of global economic integration, seize strategic opportunities, and catch up. Chery has long hired hundreds of foreign experts to work in the factory. In the workshop, the production line managed by Japanese experts can be seen. The later models are all in cooperation with Europe and America, core components, and international first-class companies. Spray lines produced by QQ and other brands have only 5 lines worldwide. An on-the-spot interview showed that the second car engine production line that was soon put into production and is supported by world-renowned brands was jointly invested by Chery and AVL, one of the three major engine design agencies in the world. After being put into operation, it can produce 200,000 sets of 18 types of auto engines from 0.8 to 4.0 liters per year, which includes almost all the latest technologies of the internal combustion engine in the world today, and all products have reached Euro 4 emission standards. Through the cooperative development and construction of the line, Chery people have mastered the core technologies of diesel engine design, turbocharger, gasoline direct injection, etc. owned by only a few multinational companies, and obtained hundreds of patents for research and production of automobiles at home and abroad. .

Valin began construction in May 2003. Heavy-duty trucks are difficult areas in the automotive field. The process equipment used by Hualing is on par with the most advanced level in foreign countries. Spraying automation and welding production lines are all implemented by robots. Established cooperative relations with many universities and research institutes such as Mitsubishi of Japan and Tsinghua University in the country, and signed a technology import agreement with Mitsubishi Corporation for 10 years. Provincial technical center and postdoctoral mobile station. Shortly after its establishment, the company was rated as one of the 60 "China's manufacturing industry's most growth-oriented self-owned brand enterprises," and the first batch of "national auto vehicle export base companies." With a high starting point and high level to bring about high competitiveness, the target market for enterprise products has been positioned in domestic developed regions and abroad since the beginning.

Jianghuai Motors, on the basis of its own well-established automobile manufacturing industry, has gradually mastered world-class technologies such as buses, small passenger vehicles, heavy trucks, SUVs, and cars through international cooperation. It has used strong capital and good management to ensure quality. Jianghuai Automobile is now a complete series of municipal-level enterprises that are developed by themselves, from light to heavy, from buses (Kiesbauer and Ankai) to cars, from complete cars to the chassis.

Adapting measures to local conditions, combining the "advantages of latecomer" and "concentration of power in relatively backward areas to accomplish major tasks", shaping the myth of "made in China"

Anhui's regional economic positioning in China is still a "large agricultural province." The first and second rounds of reforms in rural China originated in Anhui. As the process of industrialization in Anhui accelerated, the coastal areas have been relatively developed. Many old industrial bases in China have completed structural reforms and recovered, and their economic marketization and globalization have been relatively high. The special environment and the special foundation have enabled Anhui to fully exert its “advantage of backwardness” in the process of industrialization. On the other hand, efforts have been made to concentrate its efforts on major issues. Car "Made in China" can break through in Anhui, which is a very important factor.

According to Huang Haiyu, the deputy governor of Anhui Province, the economy of Anhui Province is still in the middle of the country despite rising rapidly. However, Anhui’s large-scale enterprise strength index, its corporate creativity, and its technological R&D capabilities rank among the top three in the country. Conch Group, Fengyuan Group, Tongling Nonferrous Metals, Maanshan Iron & Steel, etc. are all leading domestic companies with international influences. Chery, Jianghuai Automobile, etc. have grown up in this environment.

What is the biggest advantage of "post-mortem"? The leaders of Jianghuai Auto Group, who are professors of “Chinese Automotive Entrepreneurs”, Zuo Yan’an and Chery’s head were all interviewed by the reporter and made an analysis. They shared two points: First, “back-end” under market economy conditions can reduce exploration. Error costs, less detours. The experience of successful people often promotes a new round of "success." "The appearance of Chery and its possible success means that it is far from being able to create a car, but it shows the development mode and road to success of China's major equipment industry." This is a review by Zuo Yanan soon after the establishment of Chery. The short years of development experience proves that Chery’s monopolising of foreign products and opening the door of cars to ordinary Chinese homes has become the main force in opening up the “Made in China” automobile industry; and the rise of Jianghuai Automobile and Hualing Automobile, The “Made in China” has made a full-scale attack on the automotive fields such as mid-level passenger vehicles, buses, heavy trucks, and special vehicles. Second, with the technology and equipment being basically the same, the talent and labor costs have become the biggest advantages of competition. At the beginning of its establishment, Chery made a very in-depth study of the rise, stability and obstacles to the development of the Korean auto industry. Zhan Xia introduced their findings and concluded that as a mature industry, with the technology, equipment, and international companies at the same level, talent and labor costs become the biggest advantages of competition. The Korean auto industry was developed with the help of international resources. After the per capita labor cost exceeds 4,000 US dollars, the international competitiveness of its automotive products has gradually declined. In China, especially in the agricultural province of Anhui, the labor force is stable and the cost is relatively low, and the space is relatively large. Because Hefei University of Technology and other domestic automotive and related professional universities are located in Anhui Province, a large number of professional talents have been accumulated, making Anhui an exceptionally advantageous automobile industry. The reporter interviewed Jianghuai Automobile and the Chery Group and ate with the management. Randomly asked, more than 70% of business leaders on a desk graduated from Hefei University of Technology. Including Zuo Yanan and Yin Tongyao are graduates from Hefei University of Technology in different periods. The advantages of the labor force in the large agricultural provinces are particularly evident.

After the breakthrough of "Made in China" world automobile in Anhui Province, a new round of transformation is approaching: After Chery's 1 million vehicles went offline and their production capacity exceeded 500,000 vehicles, they began to use technology to change markets. In addition to building a large number of vehicle assembly plants outside the developing countries, the United States is expected to enter the automobile kingdom through multiple channels. Recently, the well-known US media "Wall Street Journal" published a report on the test drive of the Chery A1 and related analysis, giving a higher rating. Canadian media has also conducted a survey. Nearly 43% of the people are willing to buy Chinese cars. While Jianghuai Automobile is maintaining its “international level” of light truck products and “half-way business passenger vehicles”, the SUV Swiss Eagles turned out and JAC Ruiying off-road sedans also began to rush out of the country. In early September, Ruiying appeared at the Moscow International Motor Show and was favored by the Russian market. At present, it has put some products into the Russian market and a sales network consisting of more than 30 sales companies, which shows a good market prospect. Jianghuai Automobile Co., Ltd. has an annual output of 200,000 cars. The heavy truck production line has started construction.

Anhui, a major agricultural province, pushes the “China Made” global auto market and it is booming.

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