China has become the world’s most promising and dynamic automotive market and automobile production base, and has become a huge cake that the world's major auto manufacturers compete for. As multinational companies continue to shift their investment and production capabilities to China, China will become the world’s largest automotive production center.
Capgemini, Europe’s No. 1 and No. 3 global consultancy, believes that GM, Volkswagen, Toyota, Nissan, and other auto giants have taken China as the winning decision, attracted by huge market space and lower manufacturing costs. In a strategic and negative way, they have established new global production bases in China. In recent years, these companies’ investments in China have accounted for 60%-80% of their total global investment. As multinational companies continue to shift their investment and production capabilities to China, China will become the world’s largest automotive production center.
Peter Kroll, vice president of Capgemini Consulting, which is responsible for the global automotive consulting business, points out that global auto production has a surplus of around 25%-30%, and many auto giants have or plan to close their local production plants and will manufacture The focus shifts to China, and the design and R&D departments continue to remain in China. The massive accumulation of brands and the rapid increase in production capacity have led to an increasingly intense competition in the Chinese auto market. Due to lower manufacturing costs and better price/performance ratio, Chinese cars will be exported to Europe and the United States more and more in three to five years. China will not only become a major automobile manufacturer, but will also become a major exporter of automobiles.
Peter Crow is optimistic about the future of the Chinese automotive market and the automotive industry. He said that although China’s per capita GDP is only 1,000 US dollars, the middle class with strong purchasing power is rising. In addition, with the gradual reduction of car prices, and the further liberalization and popularization of auto loans and car leasing, it will effectively promote the continuous growth of China's auto consumption.
According to a survey conducted by Capgemini Consulting, the psychology and habits of Chinese consumers in buying cars are different from those in other countries: Chinese people tend to buy new cars and have less interest in second-hand cars; when Chinese choose cars, it is easier to listen to family members and friends. Colleagues' opinions, unlike consumers in other countries, are accustomed to the use of publications and independent automotive evaluation services; Chinese consumers are less obstinate about car brands and retailers than consumers in other countries, and few people are The same retailer buys the same brand of cars; Chinese consumers who repeatedly purchase new cars account for only about 30%, and 70% of Chinese consumers purchase new cars for the first time, which implies huge market potential.
Peter Crow believes that it is important for manufacturers to have a deep understanding of customers' spending habits and behavioral characteristics. Only in this way can the target be targeted and the marketing can be targeted and effective. China's accession to the WTO has further reduced automobile tariffs. Regardless of imported cars or domestic cars, consumer expectations for prices are high, and holding money for purchase becomes a common psychological issue. In addition, the increase in raw materials and other costs make the automotive industry more challenging.
Peter Craw said that at present, the global automotive industry has emerged a series of new trends: First, due to rising fuel prices, increasing energy shortages and increased awareness of environmental protection, energy-efficient cars, small-displacement cars will become more common. For example, the European 3-litre energy-saving diesel engine is very popular. Toyota recently introduced an energy-saving hybrid engine. Secondly, the automotive market has become increasingly subdivided. Manufacturers of different classes and interests and hobbies continue to introduce new products and introduce new personalized and user-friendly models. For example, DaimlerChrysler will launch 15 new models this year. Third, the global automotive industry has entered a new era of mergers and acquisitions. In the Chinese market, the cooperation between international brands and local brands will be further strengthened. New product development, vehicle manufacturing and parts supply chains will also be reshuffled. In the past, a car manufacturer often had 600-800 component suppliers, and in the future it will be consolidated to about 200.
How can domestic auto manufacturers keep and expand their brands in cooperation and competition with multinational auto giants?
Peter Crow frankly stated that China’s auto companies are now facing similar problems faced by auto companies in Eastern Europe 10 years ago. For example, Romania’s Dacia teamed up with Renault to use Renault’s technology platform, management experience and marketing network to improve design, improve quality, reduce costs, and open up the market while maintaining the original brand. The Czech Skoda car also succeeded in joining hands with a global car company, maintaining both the original trademark and an international brand. Based on the experience of Western countries such as Europe and the United States, companies located in market segments, special-purpose and special target customers are likely to survive in the market. If you do not care about your own strength, blindly bigger, it will easily lead to failure of the capital chain break.
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