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[YesAuto News] A few days ago, the disclosure of a piece of news shocked the Chinese auto industry: Yes, it is the reduction in tariffs on imported cars. On May 22, 2018, the Customs Tariff Commission of the State Council issued the “Announcement on Reducing Import Tariffs on Complete Automobiles and Parts”, announcing that from July 1, 2018, the import tariffs on complete vehicles and parts (hereinafter referred to as “Reduce automobile import tariffs”): Reduce the tax rates of 135 tax numbers with a 25% car tax rate and 4 tax numbers with a 20% tax rate to 15%, and reduce the tax rates for auto parts to 8% and 10% respectively , 15%, 20%, 25%, the tax rate for a total of 79 tax lines is reduced to 6%.

The announcement of the reduction of import tariffs on automobiles was first seen in a message on the official Weibo “Customs Release” of the General Administration of Customs: “Guess”. However, before the scheduled disclosure time, Trump couldn't sit still and was shaken off directly via Twitter. This process can be described as very dramatic and contemporary.

The reduction of import tariffs on automobiles has always been a topic of “the wolf is coming”. It is discussed every year, and no specific measures are seen each time. Now, the wolf has finally come, and it came so suddenly. However, in addition to lowering automobile import tariffs, there will be a series of actions in the future, which will have a huge impact on China's automobile market and automobile industry. The story of “The Wolf Is Coming” is just the beginning, the big bad wolf just knocked on the door, and then the story of “The Three Little Pigs” is next.

Imposing high tariffs: the story of the first little pig

“Three Little Pigs” is a familiar story. In the story, the first little pig built a thatched house, hoping that the thatched house could withstand the attack of the big bad wolf. As a result… As everyone knows: the house was blown away and Piggy Cang ran for his life in panic. The imposition of high tariffs can be described as the thatched house of China's auto industry. Although it has always existed before, it will eventually be reduced to a level where it loses its barrier function.

In order to protect its auto industry, China once imposed high import tariffs on the entire vehicle and its parts. After joining the WTO (World Trade Organization), although automobiles enjoy a transitional guarantee mechanism as a specific product, it is still necessary to reduce tariffs to the agreed level in stages within the agreed time. By 2006, China had fully fulfilled its previous commitments regarding auto tariffs. Even before joining the WTO, the tax rate has been continuously reduced: the tariffs on vehicles with a displacement of 3.0L have been reduced from 220% and 180% in 1986 to 100% and 80% in 1997, respectively.

The reduction of automobile import tariffs this time is China’s initiative and part of the expansion of market opening measures. It has been written in the “2018 Government Work Report”: Import tariffs on consumer goods.” In the future, as the degree of openness expands, the level of China’s levy on automobile import tariffs may be further reduced.

Therefore, the role of the first little pig’s thatched house will definitely become smaller and smaller, and will eventually be negligible. If China's auto industry wants to develop and Chinese auto brands seek progress, they must not rely on import tariff barriers.

Limiting the shareholding ratio of joint ventures: the story of the second little pig

After the story of the first pig, it was the second pig's turn. The second little pig built a wooden house out of twigs—not even a real wooden house, which is like the restriction on the shareholding ratio of Chinese auto joint ventures.

As early as 1994 when the “Automotive Industry Policy” was issued, it was clearly required that the proportion of Chinese shares in Sino-foreign joint ventures and cooperative enterprises should not be less than 50%. Although the “Automotive Industry Development Policy” was issued in 2004 and revised in 2009, the requirements for this share ratio have not changed. However, the “market-for-technology” strategy of Sino-foreign joint ventures has not really improved the level of Chinese auto technology. With foreign products and brands, Chinese companies that have been eating soft food before are not enterprising, and even have an explosion in auto sales. The golden decade of growth has sailed against the current. On the contrary, private enterprises and local enterprises that had no policy support and no foreign joint ventures have stepped out of the road of autonomy. After more than ten years of unemployed salary and courage, they have now demonstrated strong competitiveness and vigorous development. It can be seen that without mastering the core technology, the share ratio does not represent the proportion of the right to speak, and the current share ratio restriction does not actually have any effect. To be more serious, the previous strategy of “market for technology” completely failed.

And another restriction on “the same foreign businessmen can establish two or less joint ventures in the country that produce the same type (passenger vehicle, commercial vehicle) complete vehicle products”, which is also accompanied by the “Guide to Foreign Investment Industry” last year. The catalogue (revised in 2017)” (hereinafter referred to as the “catalog”) was released gradually. The “catalog” pointed out that “such as the joint merger of other domestic automobile manufacturers with Chinese joint venture partners and the establishment of joint ventures for the production of pure electric vehicle products are not subject to the two restrictions.” With the merger and reorganization of domestic automobile companies, and new energy The automobile is in full swing, and the restriction that the same foreign brand can only have two joint ventures in China has been broken, and it is in name only.

In the keynote speech of this year’s Boao Forum for Asia, it was mentioned: “In the manufacturing industry that has been basically liberalized, a few industries such as automobiles, ships, and aircrafts that currently retain restrictions have already established the foundation for liberalization. The next step is to relax restrictions on foreign shareholding as soon as possible, especially Foreign investment restrictions in the automobile industry.” In the future, the Chinese automobile industry’s restrictions on foreign investment will be further relaxed, and the second little pig’s wooden house is already in jeopardy.

Restricting foreign investment to build independent factories: the story of the third little pig

The third little pig built a brick house to withstand and defeat the big bad wolf, so the story ended with a happy ending. But the story is obviously not “then there is no then” (this Internet buzzword is obviously not used in this way). In the sequel, Big Bad Wolf graduated from Lan Xiang and drove an excavator. Therefore, it is not impossible to let go of the restrictions on independent foreign investment in the establishment of factories. Moreover, in the “2018 Government Work Report”, it has been mentioned that the general manufacturing industry should be fully liberalized, and the opening up of telecommunications, medical care, education, pensions, and new energy vehicles should be expanded. Foreign brands are allowed to establish wholly-owned electric vehicles in the free trade zone. Rumors of car manufacturers have been around for a long time.

Therefore, in the future, a breakthrough will be formed in the field of new energy vehicles, and the liberalization of restrictions on foreign independent plant construction is also a situation that Chinese branded auto companies must face. “The Eternal City” Rome will be captured, and Little Pig's brick house will not remain as impregnable forever.

Dancing with Wolves: The Story of Peppa Pig

The story of “Three Little Pigs” is well-known to everyone, and recently “Little Pig Page” has become extremely popular and has become a phenomenon-level IP. However, unlike the three little pigs who regard the big bad wolf as their natural enemies, in Peppa Pig’s world, herbivores and carnivores coexist peacefully, and there is even no conspiracy in Zootopia. Peppa Pig even has a wolf friend-Wendy the Wolf. On the night of the full moon, Wendy the wolf not only didn't go crazy to eat Peppa Pig, they could even celebrate their birthday together. Why is it so? This starts with Peppa Pig’s family.

1. Brand confidence

In “Little Pig Peppa”, all animals are equal friends, and there is no relationship between food and natural enemies. The three little pigs in “Three Little Pigs” shivered when they mentioned the big bad wolf. This is very similar to the attitude of the Chinese auto industry. At the beginning of the development of China's automobile industry, we always called ourselves “independent enterprises” and “independent brands”. The word “independence” has the meaning of “independence and autonomy”, with a semi-colonial color, and a sense of self-dwarfing. While Autohome has always advocated the term “Chinese brand”, this hidden meaning has been removed, laying the foundation for being on par with American brands, German brands, Japanese brands, and Korean brands. In fact, this appellation is just a performance, it seems to be just a word game, but behind it does represent brand confidence: both automakers and users regard Chinese brands as synonymous with low prices and low quality.

Although we need to acknowledge the current gap between Chinese brands and other foreign brands, we should not regard this gap as part of our genes. This gap is only caused by different stages of development. With continuous progress, Chinese brands have the opportunity to reach or even surpass other foreign brands in some aspects. Therefore, it is very important to establish brand confidence. In the context of global integration, competitive auto companies should all be global companies, and Chinese auto brands must move from the Chinese market to the international arena. This is not a development goal, but a necessity for survival. This requires that both in terms of products and brands, Chinese car companies must strive to reach the world level, and should not be confined to the single market of China. China's is the world's, and Chinese brands should have such self-confidence and awareness.

Second, the product is perfect

Peppa Pig's self-confidence is not just for shouting out. It comes from the happiness of her family and the love of her relatives. Similarly, a brand is not a castle in the air, it needs to be supported by the continuous accumulation of products and services.

Judging from the development history of developed automobile countries and the growth experience of major automobile brands, “price advantage” is only one aspect of product competitiveness, and “quality” is the core competitiveness of sustainable development and progress. Only by continuously improving quality and improving brand premium ability can it gain the long-term favor of the market and users. Therefore, after the Chinese car companies have obtained the first pot of gold through the low-end market in the past development process and realized the survival and development of the company, they should focus on the improvement of product quality and service quality, and formulate the company with a long-term development strategy. Goals and visions.

In addition to the overall improvement of product quality, the overall strategy of product genealogy also needs to be considered. In “Little Pig Peppa” family, the generous and kind mother, the considerate and hardworking father, the naughty and cute brother, and even the grandpa and grandma, each character has a different positioning and common characteristics. The three little pigs have the same positioning. Although they seem to have different methods of building a house, they have the same goals, but they have failed to form a joint force. Many Chinese brand car companies will make the same mistake: due to low quality, weak premium ability, price grades between products, insufficient market insights and analysis, resulting in serious product homogeneity and failure to form an external product lineage. On the contrary, the internal friction is serious. Product model changes cannot reflect the improvement and growth of quality, but want to avoid bad reviews of past products by constantly changing names. This not only fails to change users’ bad impressions of past products, but new products still cannot establish new ones. Image.

Therefore, in terms of products, investing in basic research and development, improving product quality, and optimizing the pedigree combination are the directions that Chinese brands should strive for.

Three, three views are correct

The plot of “Little Pig Peppa” has three views very right. It has taught children many good habits and correct principles in a relaxed and happy manner. This is also one of the reasons for its popularity. For auto companies, developing products, operating companies, and establishing brands is definitely not a short-term investment that can be a one-shot deal. It requires long-term continuous investment and requires the idea and mind to be a century-old shop.

Take a commonplace example: the copycat and originality of car research and development. In the initial stage of China’s automobile industry, it is understandable to refer to developed countries, advanced enterprises, and mature models to carry out reverse development. However, after decades of development, the industrial chain and supporting systems have been improved day by day, and users continue to mature. To use “cottage” as the main model of product development is undoubtedly a way out. The cost investment of auto companies should be placed on basic research and development, talent training, quality improvement, and process improvement, instead of copying everywhere to save money, or even saving money for public relations to delete negative news. This will neither help to establish one's own R&D system, nor is it conducive to long-term brand cultivation. Fortunately, judging from the new cars that were launched in the first few months of 2018, Chinese brands have changed their previous “cottage” habits, and have played original and innovative brands, bringing new development to the Chinese automobile industry and the enterprises themselves. hope.

Compared with the three little pigs, Peppa Pig is happy. Compared with other developing countries, China's auto industry is gradually on the right track. However, with the progress of China's auto industry and Chinese auto brands moving to the international stage, the opening of China's auto market is the general trend. This is not only determined by the development of the auto industry itself, but the inevitable development of the entire Chinese economy. Therefore, it is good to lower tariffs, open up the shareholding ratio of joint ventures, or even allow wholly foreign-owned enterprises to build factories in the future. Faced with the failure of these protective measures that once served as barriers, it is time for Chinese auto companies to step out of their babies and face the whole world with their own strength. The world.