In the current situation of global financial crisis, the automobile industry in China is facing two opportunities: one is the "market opportunity" formed by the transition of world automobile industry's focus toward the market of China; the other is the "technology opportunity" brought by new energy automobile revolution. In recent years, China has made enormous progress in new energy technology and has lessened the difference with the internationally advanced level. It's quite necessary to seize these opportunities so as to realize a new breakthrough in new energy vehicle technology of China.

In the current situation of global financial crisis, the automobile industry in China is facing two opportunities: one is the "market opportunity" formed by the transition of world automobile industry's focus toward the market of China; the other is the "technology opportunity" brought by new energy automobile revolution. The correct recognition of the two opportunities is an important precondition to make future development plans for companies.

Take precautions to flourish both production and sale

Benefited from macro-economy growth and favorable policies for vehicle consumption, Guangqi Honda Automobile Co., Ltd. achieved flourish in both production and sale; the total sales volume reached 98,677, up 3.36 percent year on year. The eighth-generation Accord has been occupying the largest sales volume at the level of mid-high-class vehicles for twelve months since it was put onto the market; the total sales volume reached 49,550, up 8.35 percent year on year. The first mid-class model of Guangqi Honda Automobile Co., Ltd., CITY, which is listed at the end of last year, quickly seized the segment market shares. The new Fit and Odyssey both have kept a leading position in their own segment market. Odyssey still owns vigorous vitality before its upgrading; the monthly average sales volume is more than 2,100.

In as early as last year, Guangqi Honda Automobile Co., Ltd. had established more flexible linkage mechanism between production and sale: by using advantage of flexible production line and adjusting production and sales volume in light of market demand, effectively reduce storage of factories and sellers; emphasize network construction in tertiary and four-stage cities in light of the transmission trend of vehicle consumption toward inner market; perfect the scientific management, protect their interest, enhance sellers' training, strengthen credit support to sellers and improve their market competitiveness; steadily drive R&D of self-owned brands and increasingly perfect personnel training system. In fact this series of policies are timely and effective. In fierce market competition, Guangqi Honda still keeps a positive increase with good profit-making performance, and further lifts degree of satisfaction from both sellers and consumers.

Stabilize and enlarge vehicle consumptive demand

Influenced by the global financial crisis, traditional all vehicle consumptive markets in North America, Europe and Japan have shrunk to some extent; however from the first to fourth month of this year, both the production and sales of Chinese auto industry realized rapid growth. Transnational auto giants will surely transmit their strategic focus to China and bring more capital, human resources and more advanced technology into China. Meantime, wide market space, advanced manufacturing system and establishment of human resource reserve system also assist Chinese auto companies to achieve substantial improvement in innovation capability.

The good situation in Chinese auto market is benefited from the good fundamental of macro-economy in China, and also from a variety of favorable policies stimulating vehicle consumption; especially the policy to levy half of purchase tax regarding vehicles with 1.6L (or less) emission is vitally significant for the consistent growth of commercial vehicle market during the first half of this year. Statistics show that the 1.6L (or less) vehicle licensing amount increased by 30.6 percent from January to April in 2009, far higher than the increasing rate of the whole commercial vehicle market; its constituent ratio in the whole commercial vehicle market increased from corresponding 55.3 percent to 63.3 percent. The policy effects are obvious. Guangqi Honda Automobile Co., Ltd. is also a direct beneficiary of the above favorable policies. Take CITY as an example. Its total sales volume reached 28,089 from January to April this year, increased by 26 percent compared with the same period of last year; besides, referring to the two displacement of 1.8L and 1.5L, sales volume of 1.5L occupied 80 percent. This indicates that policies and measures published for auto market are powerful and efficient.

However, it must be realized that the auto market does not have a steady basis for consistent increase. Policies are required to perform the driven function to stabilize and enlarge vehicle consumptive demand.

The "Automobile industrial restructuring and rejuvenation program" has made whole-scale planning for the development of automobile industry. Related departments should issue relevant implementation regulations and measures soon and strengthen policy research to make participants understand policy direction and market expectation, in order to enhance confidence of factories, sellers and consumers.

Promote actively energy-saving and emission reduction

Under the circumstance of Global Warming, the coming exhaustion of petroleum resources and gradual degradation of urban environment, it has become a common knowledge among the global automobile industry to develop new energy vehicles. Judging by domestic and international situation, the development of new energy vehicles in China is occupying a golden opportunity. It's quite necessary to seize these opportunities so as to realize a new breakthrough in new energy automobile technology of China.

It must also be realized clearly that the wide application of new energy vehicle technology cannot be accomplished overnight. It's still a long way before new energy vehicles can completely replace the current fuel-driven vehicles. During this transition period, a practical energy saving measure is to make technological improvement on existing gasoline and diesel-oil engine and to develop small displacement vehicles.

At the same time auto products will consume a great deal of resources and discharge much waste gas during the manufacturing process, and will pollute the environment in automobile maintenance. Therefore the auto companies with social responsibility should also build environment protective and energy saving "Green factories" and "Green 4S stores". Guangqi Honda Automobile Plant (Zengcheng) has already built one of the first waste water zero-emission factories in China; "Green special-store" project is also being introduced to the whole country at the meantime.

Source : internet

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Tags: China's Vehicle Industry Chances Crisis