Car Industry: Late For Those Who Face Exams

Early in 2005, Lifan to enter the automotive industry has been settled, the automotive industry waiting, ready to Shanghai auto show in the year to see the Lifan 520 in Seattle. Ready to go ahead when the Yin Mingshan, chairman of Lifan suddenly decided to withdraw from Shanghai Auto Show. “We do everything ready, but only a strong wind, Development and Reform Commission’s ‘Zhunsheng Zheng’ not down, cause we do not want to put pressure on authorities impression.” Yin Mingshan then accepted an exclusive interview with this newspaper, rather fear and trepidation was intended. Shortly afterwards, Lifan successfully got Zhunsheng Zheng. Yin Mingshan grass roots origins, well versed in the Rules of the Road forbear.

Can go to the bridge, but in 2007, Auto Shanghai, the Great Wall while not got the “Zhunsheng Zheng,” but high profile exhibition to three passenger cars, so any action before explaining what the outcome of the story? According to the news from the Great Wall Automobile, because cars “Zhunsheng Zheng,” the long delay in approval, scheduled for the end of August this year, the first car listed on the Great Wall, “Wizard” might be postponed.Difficult to get cars “Zhunsheng Zheng,” The JAC busy in the market. A delayed time and again in the product market, the JAC was finally released July 26 the first car brand “Pinnacle,” while around the questions raised by this new brand, it can not prop up the JAC’s first sedan in the high end positioning.

Directory problem
“Great Wall Motor in 2004 began targeting car market, for capital investment has reached 2.8 billion, only investment in R & D have more than 600 million, other expenses include production facilities, spare parts and other auxiliary preparations for amounts of money spent over 2 billion yuan . “Propaganda by Great Wall Motor Tamaki interview, said,” Great Wall Motor has reached into the requirements of Development and Reform Commission, the profit growth year after year are certainly able to get the car production directory Development and Reform Commission. ”

Even so, the industry is still skeptical. Lifan, JAC sedan project approval is not smooth, although eventually got the car production qualification Development and Reform Commission, but the Lifan than he expected, a few months later, while the JAC is nearly a year later and had the original fixed delay models on sale.

“Industrial policy, markedly improved the car entry threshold, especially cars.” Turning to the automotive industry policy, the requirements of the cars to do the Great Wall motor vehicle dealers Tamaki said, “clearly put forward the approval process sedan independent development of enterprise policy, research and development priority In an important position, in addition, capital investment and profit demands have increased. ”

This reporter has learned, like the Great Wall JAC such enterprises must turn to other markets, in addition to capital requirements, enterprise asset liability ratio of 50% must be within the bank’s credit rating also requires 3A level, if the production of cars and other passenger vehicle types products, should also have the mass production of automotive products, performance, Brand Viagra nearly three year cumulative after tax profit to 10 billion yuan, with the tax evidence.JAC is a major commercial vehicle manufacturer in China, the main products include passenger car chassis, light truck, heavy truck and MPV series. One in 2003 to market the “Refine” sales growth year after year even more, and soon made MPV sales in the first rank. Good performance enhances the confidence of Jianghuai into the car, but also attracted great attention of the Development and Reform Commission. JAC for cars in the directory,

the National Development and Reform Commission has on several occasions to the JAC research, but soon no more below, a very important reason is that the profit did not meet the relevant requirements.

JAC 2003 after tax profit of 2.1 billion yuan in 2004 to 3.2 million, until April 2006, in JAC published report shows that in 2005 reached 497 million net profit after tax was in line with the 3 year profit of more than 1 billion yuan requirements. Strictly speaking, even for the JAC this is better than the auto companies with growth potential for car access to the profits of Development and Reform Commission was also requested as reluctantly, let alone in the highly competitive market, the size and profits fell far short of JAC the level of other brands do?Fang Jian is also circulating JAC got the “Zhunsheng Zheng”, has another version. It is said that JAC’s cialis cheap head can not get left in Yan’an in the late “Zhunsheng Zheng” after not sit still, and to use its capacity as NPC deputies to the National Development and Reform Commission launched an attack: on what basis has never been done ratified the Lifan cars project, not to grant more than 40 years doing car Jianghuai.

“In the production of structural excess background, qualified to talk about access to car production is indeed a very sensitive issue.” Shuanghuan car Ze, vice president of the country is willing to speak too much double loop “small elite” Application for car production associate into the specific circumstances.

Against this background, there are still many companies looking forward to “Zhunsheng Zheng.” Changfeng Group propecia young men Chairman Mr. Li said that the current car Changfeng planned project has two platforms, he argued that the state has approved the JAC, Lifan production of cars, there is no reason not to allow Changfeng made cars.However, despite the Changfeng until 2009 will introduce a car products, but in this year’s “two sessions”, as a deputy to the NPC for the Changfeng Li Jianxin was already on the car directory and running.Relatively speaking, the land breeze to be a little lucky. Recently, news came from the Landwind automotive interior, Landwind cars numbered “CV7” a car, won the State Development and Reform Commission officially approved, to get the “Zhunsheng Zheng,” Development and Reform Commission’s detailed announcement in the near future the “vehicle production corporate and product announcements, “published. However, the JMC is to lurk in the cost of Changan Group and became Chang’an Group business.

Basic weakness
However, really everything is ready, only a strong wind do? Lifan With “Zhunsheng Zheng,” but until now had not hit the mainstream market, Chery, Brilliance steeped in the car market for many years, but still enough to trigger a crisis of confidence hit a “crash gate”, such as Geely brand despite painstaking efforts, is still only a synonym for cheap cars.Clearly, though eligible for a permit access to hard to find, but have a “Zhunsheng Zheng,” does not mean that everything is all right. China’s auto industry, a rising star are hard to break cocoon turning into a butterfly, it is precisely because many of the basic link is too skimming over the surface, the pursuit of short term benefits.In research and development, some local enterprises due to their own lack of capacity, often habitually, “draw” some popular models of the design, subject to intellectual property aspects of multinational companies is inevitable criticism. In today’s business environment, such as short term behavior of the corporate image of the damage might be long term.Although a small number of companies to develop several more best selling models, but in the follow up products reach replacement level, leading to market share step down power has greatly reduced the degree of consumer concern about the enterprise.

At the same time, the majority of private enterprises still remain in a certain type of product models in a certain level of “broken code” stage, from the auto companies need product standards is also far from the whole series.In the marketing level, the current model of local enterprise channel management and operations level, in fact allows its distributors simply be expressed as “selling cars places”, the situation with the motor channels of rich content to be implied and should assume the role of the corresponding very different.

Brand Ceiling
More difficult to break through the layer of the ceiling is the brand. In the “era of brand competition,” just hope that through the use of their products to consumers perceive brand, and the formation of corporate brand loyalty is not feasible. In fact, the product and the brand is likely to deviate from development, and a good product may not be naturally have a good brand.Sinotrust Marketing Research & Consulting Co., Ltd. CEO LEI believes that private companies need to spend a lot of energy to consider the brand to build and upgrade, take the initiative in addition to the brand product advantages over content and business concepts for management of sexually transmitted so as to effectively shorten the brand building cycle, and formed between the product and brand interaction.In any case, those who are still the market around on the edge of a rising star who must quickly mature as a joint venture company has to its own brand name in brewing a new car. The same time, multinational companies are trying to enter the low priced car market, new domestic car brands exams is not far off.

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