Cui Dongshu, secretary-general of the National Passenger Vehicle Market Information Association, believes that the investment environment of multinational car companies in China is more open and free. After the Chinese market enters a new normal, their investment should also be accelerated to operate.
Regarding whether or not the core technologies can be localized, Cui Dongshu believes that the demand in the Chinese market is more high-end, and the Chinese government is increasingly nurturing and guiding the technology. Multinational car companies must quickly bring higher-end technologies to China. .
Under this background, what kind of trend will the investment of multinational car companies in China present? Does the core technology have any hope of deeper localization? China Economic Net has conducted an in-depth dialogue with Cui Dongshu.
More open and free China should seize the opportunity to cross-car prices <br> <br> China's auto market, though started late, but the pace of development has been very rapid, has become the world's largest auto market, but also in efforts to become a leader in all market segments .
"The current economic management and openness of the Chinese government are all very conducive to the development of multinational car companies. With this in mind, the confidence of multinational car companies in the Chinese auto market is constantly increasing," said Cui Dongshu.
“Not only is the opening up to the outside world, the Chinese government is increasingly nurturing and guiding the technology. As the competition in the Chinese auto market becomes more and more fierce, and consumer demand is becoming more and more high-end, multinational car companies must put more quickly. The high-end technology has gotten China in a comprehensive way." Cui Dongshu analyzed that.
Equity ratio remains solid Chinese cars to the world <br> <br> since 1983, China's auto industry joint venture to open the road, both Chinese and foreign equity ratio of 50:50 has been a Chinese joint venture enterprises of the "standard model." “If 50% of the stocks are 50%, try not to move. If this kind of joint venture makes an adjustment, it will certainly have some impact on our economic development basis.†Cui Dongshu said.
The original choice of a joint venture, and the current favorable environment for joint ventures, is to enable local companies to learn advanced technologies and management experience from joint ventures and drive the development of local industries. In this regard, the road for the Chinese auto industry still has a long way to go.
Cui Dongshu believes that “Chinese cars are going to the world. However, our vehicles are basically exported to emerging markets and third-world countries. These countries are not very economic, and the export volume is not particularly satisfactory. Our exports will be transferred to new markets, but At present, there is still a long way to go: we must first do a good job in the domestic market and steadily achieve development in the international market.
Better prospects for shifting the Chinese auto market to third-tier cities
In the 21st century, China began to steadily advance the strategy of developing the western region. For all walks of life, the Midwest market has great potential for development. In response, Cui Dongshu said: “The market for auto companies is in the third and fourth line and in the central and western regions. Multinational car companies, who can take bigger market faster, who can get a bigger policy and resources. Advantages can also lead to a bigger development opportunity."
"The multinational car companies should make plans as soon as possible to lay out the western emerging markets." Cui Dongshu suggested.
In view of the future of China's future auto market, Cui Dongshu believes that “China's auto market has a sustainable and super development space. Our urban population is relatively the most affluent in our population. It is the world’s largest, but our auto market is relatively low in terms of ownership. The two contradictions actually determine that there is a huge space for development in the future, and that China’s economy has started to improve, and it is expected that the growth of the Chinese auto market will maintain a growth rate of over 10% between 2016 and 2020. Enterprises should be brave enough to open up markets and increase investment."
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