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Thursday, April 30, 2009

Shanghai Auto Show: China's vehicle charges how to chink the "increasing yield without expanding income" gridlock

By Zou Frbiz

Shanghai Xinhua April 21, is the thirteenth session, held in the Shanghai auto show was considered a strong boost to the confidence of the Chinese automobile market, the major car exhibition manager enterprises have made a good domestic car sales this year, more than 10 million views. Optimistic about the sales figures in the face of a harsh reality the problem is that domestic auto manufacturers how to complete the "output" targets to boost enterprise efficiency synchronous?

Domestic car prices "make the sale less" sign in the first quarter of this year actually began to appear. Association of steam released statistics show that January-March this year, domestic automobile production and sales year-on-year growth of 1.91%, respectively, and 3.88%, but the size of more than two months before the car high total profits are down 50 percent year-on-year. Automobile sales in March, despite continued to get better, but day care is expected to have similar first quarter of this year the focus of 31 listed companies in the automotive industry's net profit fell 14 percent will be synchronized.

Why China's automobile industry would lead to "increased income" situation? In sighting, the statistics in the Steam Society has given a first go counter to the question: by the revitalization plan for the pay for of small displacement cars by half and the "car to the countryside" policy to rouse the first quarter passenger car sales by 70.7 per 100 of the 1.6 higher and the pursuing release of energy motor vehicles, particularly cross-type passenger minibus that is created. Analysts spiky out that the average exchanging price of these cars in 5 million, where profit boundaries were on the floor heading down 10% of car-effective contribution rate can not be equated with the sales. Seen in this candle, the revitalization of the Government's planning and spending estimates to rouse the rate simply for the car to write a rudimentary setting warmer. China's car prices to achieve sales volume and efficiency of the synchronization recovery, or may rely on their have efforts.

Car prices to profits, either from a bicycle to elevate the average earnings and charge savings from couple aspects. Increase the average end product on a bicycle, the worker car prices have commenced in a conscious actions to transform goods mix. From the auto demonstrate, we can suppose that this year's rate of worker car makers in individual, on their have labels in the field of high-end actions to free-spoken higher very great. As unvarying with "civilian car" photo that's Chery Automobile, in this demonstrate will bring, surrounding Riich, Wei-lin in the high-end labels such as 32, surrounding the demonstrate cars, car refuges from the senior finance micro-car to car quality Six series.

Yin, head individual of Chery Automobile leap in with the new seminar after the exchange with the newspapers seem that the present China-made automobiles in the goods, expertise and foreign businesses is getting higher and higher degree of homogeneity, but furthermore the bigger the gap between brands. The identical value, why vehicles "carrot charges to deal the meat"? After all, is a inquiry of value-added brands. Yin and Yue said that the foreign newspapers lately, he inquired to purchase Volvo following, but Chery to address why they can not construct a more powerful emblem than Volvo?

Specific to the goods, Chery Auto Show in the aim of the introduction of a "smart vehicle digital products" RiichM1, Yin said that with the leap, which is not an upgraded type of QQ. He said that household buyers have a bias on the vehicle that is low-end cars. But, in detail, alike to BMW's Mini Cooper and other vehicle kinds, is furthermore part of the luxury. Chery's aim is to RiichM1 with high-end vehicles in the market place.

On charge savings, the layoffs and pay grazes car prices is obviously not a responsible way, not the actual results, crosswise of worker cars have a advanced achieve solution. SAIC chairman Hu mao yuan in the demonstrate on the eve of the Summit Forum on the expression of the "industry ought appear at hands to tide through the calamity through" view. For case, he said, such as the Automotive Logistics, a single motor vehicle is now adapted in batch mode crosswise can basically lead to out-of-stocks or the backlog of difficulties, a great impact on charge of sales. In sighting, the automotive industry can learn from the fashion world "mashups," the practice of the various enterprises, brand blend, as the same train to distribution districts, so that to improve logistics efficiency and diminish expenditures are a lot of good.

R & D in diminishing the charge of the worker car prices are also great room for cooperation. For case, novel energy battery mechanical supplies, various production plants have occupied in, in sighting, can also be examined combined to carry out research in lead to diminish the money and portion the results. Hu mao yuan said that to achieve the above-mentioned circumstances, the deficiency to rate each motor vehicle to contravene the traditional creations and full cooperation is not easy. - 21393

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