Although the country's new automobile industry policy still remains unclear and has not yet been introduced, private enterprises in Zhejiang have bypassed the current industrial policies that have not yet been replaced and have many restrictions on private capital, and have entered the vehicle manufacturing industry in large numbers.
An official from the General Office of the Zhejiang Provincial Economic and Trade Commission confirmed that the National Development and Reform Commission has received applications from 40 private enterprises in Zhejiang and requested to obtain a full vehicle production catalog. The Zhejiang Federation of Industry and Commerce, at the just-concluded meeting of the Fourth Session of the Standing Committee of the Ninth CPPCC Zhejiang Province, formally submitted an investigation report on the Zhejiang manufacturing industry and confirmed that only three years
There are already 28 private enterprises in Zhejiang entering the vehicle manufacturing industry. Among them, in addition to the Geely Group, which has achieved a full vehicle production catalog, there are five independent manufacturers of complete vehicles, and there are 14 manufacturers of special-purpose modified vehicles. There are nine of them, in addition, there are many manufacturers that are quietly operating.
At the same time, there are also many doubts about the large-scale private enterprises in Zhejiang entering the automotive industry. Why does Zhejiang have so many private enterprises to choose the vehicle manufacturing industry? What are their emboldened? How many chances do they succeed? Alarmed Auto Parts Industry's "Attendant Independent Movement"
What is of interest to the auto industry is that, of these Zhejiang private enterprises that have to independently manufacture vehicles, more than 80% of them are doing auto parts business.
A major pillar industry in Zhejiang Province is the auto parts industry, which is a large domestic auto parts manufacturer. FAW, Dongfeng, and SAIC each year purchase 50% of their parts and components from Zhejiang. Only last year, the output value of Rui'an City exceeded 8 billion yuan, accounting for 25% of the total industrial output value of Ruian. However, not long ago, when more than 400 Zhejiang auto parts manufacturers took part in the 53rd National Auto Parts Fair held in Chengdu, the insiders were surprised to find that although Zhejiang auto parts companies accounted for one-third of the exhibitors, However, Zhejiang Wanxiang, Zhejiang Zhongyu, Ningbo Huaxiang, Xinchang Wanfeng, Yongkang Tieniu, etc., who are familiar with the industry, are the biggest names in the Zhejiang auto parts industry. However, they are hard to find in the fair—He Hongxin, Secretary General of Rui'an Auto & Motorcycle Industry Association. It is the first time in the domestic auto parts industry.
Why did the biggest names miss the occasion once this year was the most important group in the domestic auto parts industry?
It turned out that Zhejiang's more than 30 auto parts industry's biggest names are collectively busy shifting the car industry and have no time to attend to the auto parts industry's gathering. This move has made the domestic auto industry peers feel uneasy.
Ningbo Huaxiang Group is an enterprise that produces automotive interior parts and its products account for 80% of the domestic market. Zhou Xiangfeng, general manager of Huaxiang, said that Huaxiang Group is a member of Shanghai Volkswagen and Changchun FAW, and is also a parts supplier for multinational auto giants such as General Motors.
However, entering the vehicle industry is an established strategy of the Huaxiang Group - first to be the "servant" of the auto giants, and to look for independence after being rich. If 23 years ago, its predecessor, Xiangshan Post and Telecommunication Equipment Factory, could not have imagined getting involved in the auto industry, but at least 3 years ago when the output value and sales revenue of Huaxiang Group exceeded RMB 1 billion, the strategic focus of Huaxiang would have been The shadow of the shift from the auto parts industry to the entire vehicle industry. In the following years, when Huaxiang became a dominant player in the domestic auto parts industry, it also quietly launched a car strategy. In its "Vision", Huaxiang Group stated that it is advancing into the vehicle manufacturing industry and realizing a large-scale multinational company that focuses on the automobile industry and integrates investment, technology, and trade. In 2001, mergers and acquisitions were produced. The Liaoning Luping Machine Factory of military vehicles is just a successful test of Hua Xiang’s major transfer to the automotive industry.
In May of this year, Huaxiang acquired Hebei Zhongxing Automobile Manufacturing Co., one of the top three pickup trucks in China. This move made the Huaxiang Group’s established strategy suddenly known to the world.
Last year, ZTE had sales of about 1.2 billion yuan and had more than 120 specialty stores nationwide. This time, attributed to Huaxiang, using their argument, is due to "Huang Xiang, general manager of Zhou Xiangfeng has long been the intention to enter the vehicle industry."
Similar to the Huaxiang version are other auto parts giants in Zhejiang, such as Wanxiang Group, Wanfeng Auto Group and Zhejiang Zhongyu Group.
Wanxiang Group has a significant position in the domestic auto parts industry, but Wanxiang Group is the first one among Zhejiang auto parts companies to choose to enter the auto production field. After three years of tempering, Wanxiang has successfully developed electric vehicles - Wanxiang's sources said that electric vehicles are pollution-free, energy-efficient and have broad prospects, but they are technically difficult and have large investments. At present, there are only a few international giants such as Toyota. Production - the meaning of the word, in this piece, Wanxiang wants more than just the domestic market.
It is reported that Wanxiang Group has developed two large trucks and five cars this year. It is currently undergoing technical testing and perfection of arguments. The Wanxiang automobile industry has already taken shape.
As for other Zhejiang private enterprises whose reputation is less than universal, they are also making their own choices.
Wanfeng Auto Group, the largest steam turbine manufacturer in China, purchased a passenger car plant in Shanghai as early as three years ago and started to produce high-grade pickup trucks and vans. At the end of March this year, Wanfeng's new commercial vehicle, the Wanfeng Expressway, officially went offline, marking Wanfeng officially entering the market with a broader passenger vehicle segment.
Zhejiang Zhongyu Group made a fortune by specializing in industrial lighting equipment. The public information provided by the company stated that “Credibility is GE’s OEM (OEM) manufacturer in China, and its sales revenue reached 500 million yuan this year. China Zhongyu has shifted its existing automobile equipment and brand, and the entire vehicle production catalog of Wuhan Wantong to 'eat' and turned to production of complete vehicles.
According to the reporter's knowledge, there are a total of more than 40 companies such as Hengdian and Tiburon.
Zhejiang auto parts giant turned to be a car, but it has become a trend. Local analysts said that the current private economy in Zhejiang is stepping on the threshold of “second leapâ€, and has changed the middle and low, low value-added product levels and the “light, small, set, plus†industrial level, private entrepreneurs have Strong internal development momentum. The long automobile manufacturing industry chain, can stimulate the growth of many categories of upstream and downstream industries, but also give full play to the strength of Zhejiang auto parts industry and the advantages of the port, the current profit rate is as high as about 30%, naturally attracted Zhejiang businessmen eager to try. The unique choice of private enterprises in Zhejiang
However, the voice of doubt has almost never stopped.
The arguments of the doubters mainly focus on -
On the one hand, this is a high-risk industry. Faced with the dual pressures of international multinational giants and large state-owned companies, can private capital be able to resist it?
Mr. Chen Hong, Vice President of SAIC Motor Corporation and General Manager of Shanghai General Motors Co., Ltd., had publicly reminded the public in good faith that the development of the auto industry not only needs funds, but also needs support from technology and management platforms, and it needs Sustained, continuous input, and the ability to integrate the latest developments in multiple industries. Therefore, it is high-risk that private enterprises enter this field.
Second, private capital is now entering the auto industry and it is too late. Those who hold this view believe that the current domestic auto industry is hot, which actually indicates that entering this industry is not the right time. On the one hand, transnational corporations have been watching for a long time. Auto giants all over the world have flooded in. Domestic companies have started from scratch, and they have not been able to compete with rivals for lack of growth time.
Third, the external environment, but the key is capital and technical strength. In an interview with this reporter, Qian Mingen of the secretariat of the Shanghai Automotive Industry Association stated that he is "struggled hard and not very good." But he also stressed that the key issue is that China is now With the immature economic system, it is too difficult for private enterprises to enter the automobile sector. “As an example, electricity generation is very profitable. If you open a power plant yourself, can you get in?†Qian also told reporters: “We welcome private capital to get involved in cars, although there are private companies in the automotive sector. Has tasted the sweetness, such as Geely Automobile, that can only be said to be the result of demand, and the performance in the market is also very difficult. "At present, the "big three" auto group is still in a monopoly, private enterprises in the automotive market For a time, it is very difficult to "do something". The entry of private capital into this field has inhibited the enthusiasm for investment. However, the institutional structure of the state-owned economy is unfavorable to them.
The above-mentioned goodwill voices have indeed touched their weaknesses for these private enterprises that have decided to enter the auto industry.
However, the problem is that most of the Zhejiang private companies that made cars are all experienced in the market for a few years and become princes. They have no choice but to invest in the vehicle industry.
The maturation of the industry chain and the increasingly weak market profits are the basis for their decision to turn to complete vehicles.
Wan Guanqiu, Chairman of Wanxiang Group's Board of Directors, once said that the auto parts companies in Zhejiang are small in scale, low in grade and weak in technology development capability, and most of them are not integrated into the international automobile technology development and marketing network.
According to statistics, Zhejiang Province is a major domestic auto parts production base and has a large market share in China. There are 543 enterprises above designated size in the automobile and motorcycle industry in Zhejiang Province, and the total industrial output value is about 20 billion yuan. More than 2,000, more small businesses. However, with China's accession to the WTO, the former profit-making industry that supported the Zhejiang economy is also shifting to a weaker profit. It is reported that, according to relevant provisions, with the reduction of import and export tariffs on industrial products, the elimination of non-tariff measures such as quotas, licenses, and special tenders, the automobile and motorcycle industry will be greatly affected. In the automobile and spare parts industry, the base period's import quota for 2000 was 6 billion U.S. dollars, and it will increase by 15% every year thereafter, and all quotas will be cancelled after 2 years.
Therefore, the shrewd Zhejiang auto parts giant first saw this move, so he decided to move.
Wan Guanqiu, chairman of Wanxiang Group’s Board of Directors, once analyzed that although the auto parts industry in Zhejiang Province has overall advantages in China, if it does not take the time to adjust the industrial and product structure within a few years, it may completely lose its advantage.
Some people even predict that one-third will be eliminated.
As a result, where the Zhejiang auto parts industry should break through has become a major event that some auto parts giants have to consider.
The maturity of the industrial chain of Zhejiang auto parts industry made them keenly aware of their industrial advantages of turning into a complete vehicle.
The chairman of Wanfeng Group, Chen Ailian, revealed that Zhejiang supports half of the entire Chinese auto parts industry, and that FAW, Dongfeng and SAIC purchase 50% of the spare parts annually from Zhejiang. Zhejiang has formed a solid foundation for the manufacture of auto parts. Wanfeng has seen the special needs of the Chinese auto market from the upstream of the industrial chain. Chen cited the example of a "blowout" in Zhejiang's auto sales last year. This year's SARS has seen an increase in car sales, which shows that car consumption is in the start-up phase. Zhejiang's spending power has accumulated to the "private car era," and price cuts will not occur. Reduce the profits of cheese from car manufacturers and sellers.
But how can private enterprises get a share of the vehicle market that has been dominated by multinational corporations and continue to establish a foothold? What kind of core competitiveness do they rely on to avoid their own financial and technological disadvantages?
The answer to Zhou Minfeng and Chen Ailian is the mechanism and strategy.
The Huaxiang Group started with the “servants†of the auto giants, and the eight-year entrepreneurial journey of the Zhejiang Wanfeng Auto Group also demonstrated the strength of this advantage. At the beginning of the venture, the domestic aluminum wheel companies already flocked to the deer, but Wanfeng Auto took up the motorcycle aluminum wheel project but later moved up. Five years ago, Wanfeng Auto also established a new production base to introduce domestic and foreign turbine manufacturing. The experts joined the steam turbine project and soon opened up domestic and foreign markets.
Therefore, three years ago, when Wanfeng Auto set up Shanghai Wanfeng Bus Manufacturing Co., Ltd. in Shanghai Pudong through asset restructuring, it was planned to expand the automobile industry in an all-round way through low-cost expansion and realize the leap from production of auto parts to complete vehicles. At the same time, Chen Ailian had a "manifestation of the special needs of the Chinese automobile market from the perspective of a long-term auto parts company" as a declaration to enter the market.
Their strategy and path of choosing to enter the vehicle also proved their deep thinking - from the low-end cut-off, from the market gap.
The owners of private enterprises in Zhejiang who have been immersed in these markets for years are actually selling and controlling costs.
Their approach is to avoid the high-capital car industry and focus on lower-cost pickups and buses. Chen Ailian said that Wanfeng first accumulated operational experience in the commercial vehicle industry to complete the vehicle and lay the foundation for further development.
Some private entrepreneurs in Zhejiang who entered the vehicle analysis said that the lucrative mid- to high-end cars have been almost firmly controlled by several domestic and foreign manufacturers, so for private enterprises entering the auto industry, they must be occupied by multinational companies. In the sedan market, it is wise to avoid the confrontation with the auto giants at home and abroad. Firstly, passenger cars and pick-ups, which are less involved domestic and foreign auto giants, should be used. After enterprises have a certain scale, they will enter the commercial vehicles and cars. field.
This is exactly the astuteness of Zhejiang auto parts giants.
According to analysts from the market, judging from the development pattern of the domestic and foreign auto industries, it is not just the auto giants that dominate the market. There are a large number of relatively independent manufacturers in the special-purpose vehicle industry. Special-purpose vehicle companies rely on the chassis systems provided by several major automobile giants. , oneself focuses on the development of the function. The selection of private cars by Zhejiang private capital as a way to enter the vehicle will not only be beneficial to the large-scale production of major automobile groups in China, but also differentiate competition with foreign car dealers. For example, Hangzhou Hanghang Electromechanical Co., Ltd., which enters commercial vehicles through the integration of “China Automobile Specialâ€, is well-versed in this. “China Automobile Special†is a subsidiary company of China National Automobile Industry Corporation and owns more than 100 special vehicle products. . At present, there are 300 kinds of commercial vehicles in China, but there are more than 3,000 in foreign countries. Hangzhou Hanghang Electromechanical Co., Ltd. believes that the potential of this market is quite large.
What core competitiveness can they share with multinational companies?
A person of Huaxiang Group said that private enterprises have their own right to speak. Unlike many domestic state-owned or joint-venture auto companies, private auto companies can independently decide on product introduction, price positioning, and marketing methods. This kind of autonomous discourse power will bring great benefits to the operation and operation of private enterprises. At the same time, he believes that the mechanism of private enterprises is more lively, there is no social burden for traditional large enterprise groups, and labor costs are relatively low, which is also their own competitive advantage. Three major ways of resolving restrictions
Although Zhejiang's private entrepreneurs' savvy strategy allows them to enter the vehicle industry with less investment, auto manufacturing is, after all, a capital and technology-intensive industry. From the current analysis of the path of private enterprises in Zhejiang entering the vehicle industry, they are mostly using capital. Leverage, through the merger and acquisition of vehicle manufacturers to obtain a vehicle manufacturing platform, which to some extent eased the initial investment pressure. But the problem is that they must also face at least three major problems.
One is steel. It is reported that Zhejiang is a small steel-producing province and a large steel province. The annual steel demand is 5 million tons, and the total supply in the province is only 3 million tons. The automobile manufacturing industry uses large steel makers. So, how to resolve it? An official from the General Office of Zhejiang Economic and Trade Commission told reporters that the investment and production capacity of Zhejiang's steel, building materials, and textile industries have increased dramatically in recent years. In 2002, the province’s investment in the steel industry increased by 72% compared with 2001. In the first half of this year, it increased by 101% over the same period of last year. From January to August, the output of steel increased by 21.7%. At present, these industries have a large number of Investment projects are calculated according to the projects under construction. By 2005, the industry's production capacity will increase by 224.3% over 2003.
At present, Zhejiang's privately-owned enterprises need to build steel vehicles, according to informed sources, mainly with the Shanghai Baosteel Group. It is reported that 40 privately-owned enterprises are in private contact with Baosteel and hope to achieve strategic cooperation with it. However, this news has not been confirmed by Baosteel. In spite of this, Huaxiang Group, Wanfeng, Zhongyu Group and Oaks people all think that they will solve the problem of steel demand through the market.
The second is the lack of electricity. The shortage of electricity is the main bottleneck restricting the development of Zhejiang's industry. The situation of power supply in the province is severe. There are few power projects under construction and power purchases outside the province are difficult. There is a large gap in power supply. It is estimated that between 2003 and 2007, the annual power gap will be between 1.7 million and 4.8 million kilowatts, and the situation of serious power shortage will not be relieved until after 2007. Industrial power supply is particularly tense in the coming years. According to the average annual growth rate of 20%, the initial estimate is that in 2004, the newly-added load will be about 3.5 million kilowatts; in addition to the 2 million kilowatts of limited load and peak load in 2003, the maximum load will be adjusted to 21.2 million kilowatts. This year, the maximum load for the unified adjustment will increase by about 5.5 million kilowatts. In the next year, the newly added power generation capacity of the province will increase by an estimated 550,000 kilowatts before the peak of electricity consumption in July.
In fact, this is the pain of these private enterprises in Zhejiang. They believe that this cannot be resolved only through market means. They can only seek solutions through their own flexible mechanisms. At present, it can only rely on the government to coordinate and solve it temporarily.
The third is funding. In fact, the first two problems are not decisive, but this problem may be fatal. An official from the General Office of the Zhejiang Provincial Economic and Trade Commission said that although private funds in Zhejiang are relatively abundant, due to the large scale of investment, the company’s own funds are insufficient, and bank loans in industrial investment projects are generally more than 40%, and some are as high as more than 60%. From the perspective of Zhejiang's private capital entering the vehicle market, market analysts said that many mergers and acquisitions took place in the context of relatively loose credit in the past two years. In the long run, once the financial situation changes in the future, many private enterprises’ cash flow will change. Will face the test, because a mature vehicle development cost, time-consuming, and now some auto dealers can also be imitation, but in the future after the market is further standardized, the company's development strength requirements will be higher and higher.
According to the Huaxiang Group, the problem of funding is not as mechanical as doing math problems. The investment and financing channels of Zhejiang's private capital are very smooth. As long as the project itself operates properly, financing is not a problem. In addition, Huaxiang Electronics is expected to be listed on the main board of the Shanghai and Shenzhen stock exchanges, which also makes Huaxiang have a better financing channel - and Huaxiang's answer is almost all the thoughts of Zhejiang auto parts industry's biggest names. The lucrative profits of the entire vehicle industry will allow them to find more ways to raise funds.
Once the above-mentioned three major problems were successfully resolved by the astute Zhejiang auto parts giants, together with the Geely Group, which is known as the flagship of China's private auto industry, then the Chinese auto industry will form a powerful Zhejiang automobile industry.
Obviously, this will shake the Chinese car industry edition.
This situation has already emerged. Because the ambitions of Zhejiang's auto manufacturers for occupying the Chinese auto market have become clear - Geely's goal is to become China's largest economy car manufacturer by 2005, selling 300,000 cars each year. This will account for about 10% of the expected output of the Chinese car market before 2005. The later Huaxiang Group invested 1.5 billion yuan to build a new Fuqi Automobile Industrial Park with an annual output of 100,000 vehicles. At the same time, it will continue to inject capital, complete equipment, and carry out technological transformation of the existing Fuqi Automobile Production Line. We will ensure that the annual production of 10,000 vehicles by 2004, 30,000 vehicles by 2005, and 100,000 vehicles by 2006 will be achieved.
Analysts said that the ambitions of the two private-owned enterprises in Zhejiang for “increasing capital to expand their capacity†are not small. Then the total production of the entire 40 Zhejiang-built vehicles will be what will shock the Chinese car industry.
"'The money floats in the sky, companies go on the ground'. From a certain point of view, reflects a true portrayal of our Zhejiang private enterprises impulse to make cars." November 16 in Zhejiang held in the first Zhejiang private enterprise summit The Director of Zhejiang Private Economy Research Institute Pan Qianglong commented in an interview with this reporter. "Trap" or "opportunity"
Now the outside world, especially in the automotive industry, is very pessimistic about the Zhejiang private enterprises making vehicles. The main reasons come from two aspects:
First, the joint venture actually covers almost all areas of the automotive industry in high, medium and low, and the production capacity is obviously excessive. Second, almost all technology areas are monopolized by foreign companies. There seems to be no chance for private enterprises that don't seem to have a background in blood.
This argument is very reasonable, but this statement has clearly ignored the almost inborn expansion of investment in Zhejiang private enterprises. Years of development have made Zhejiang a pivotal auto parts base in China. Manufacturers that have completed initial accumulation are experiencing double squeezes in the thinning profits of their industries. On the other hand, their funds and exuberant energy have to find a world where they can vent. In fact, for these Zhejiang companies, the reality may not have more choices. The deepening of the industry should be their more secure and safer route.
If we look at the general trend, China is entering the so-called "heavy chemical industry era." Zhejiang's private enterprises, which have always been fierce, may have realized this with their instincts. In this era, the Zhejiang private enterprises that have become accustomed to the production of consumer goods may enter the automobile, real estate and other industries rather than the raw materials such as iron and steel. These upstream areas may also be the fate of their choice.