[YesAuto News] June 5-6, the 2018 (Ninth) Global Automotive Forum co-sponsored by the China Council for the Promotion of International Trade Automobile Industry Committee, the China Chamber of International Commerce Automobile Industry Chamber of Commerce and the Chongqing Auto Show Organizing Committee at Chongqing Yuelai Held at the International Conference Center. The theme of this forum is “Shaping the future of the industry in an era of change”. Guests from the automotive industry from all over the world gathered together to discuss new changes and trends in the automotive industry under the new generation of technological revolution. The following is the transcript of Zhu Huarong's speech, the president of Changan Automobile:
Zhu Huarong said that the era of great changes in the automotive industry has come, whether it is the entry of new capital, the application of new technologies, or even new changes in consumer trends, all of which pose severe challenges to traditional automakers and new car manufacturers. However, in the process of change, opportunities far outweigh challenges. Transformation, upgrading, and integrated development are the only way for the development of China's auto industry.
Following the real estate and the Internet, the automobile industry has become a new investment outlet, and capital has the most sensitive sense of smell. New power car manufacturers continue to enter the automobile industry. Zhu Huarong predicts that there will be a wave of mergers and reorganizations in the automobile industry in the future.
According to statistics, there have been six investment mergers and acquisitions in the automotive industry that are currently underway, involving an amount of more than 80 billion yuan. This also shows that the capital market attaches great importance to the automotive industry, which will bring a new round of great development to the automotive industry. opportunity.
Zhu Huarong also said that although the entry of a large amount of capital will bring benefits to the long-term development of the auto industry, the current excessive investment and competition will also bring about a series of problems.
At present, there are more than 180 domestic auto companies. According to the statistics of the Association of Automobile Manufacturers, in the first four months of 2018, 35% of the companies had zero sales. The concentration of the entire automotive industry is becoming higher and the sales volume ranks among the top ten. Famous auto companies accounted for 66% of the entire auto market in 2013, and by 2018, this proportion will increase to 87%, which also means that 10% of auto companies account for 90% of the entire market.
In addition, there are 503 new energy automobile companies registered with the Ministry of Industry and Information Technology, of which 16 are new power automobile manufacturers that have obtained production qualifications. The competition in this field is also fierce.
Zhu Huarong predicts that in the next 3 to 5 years, mergers and reorganizations between auto companies will become very frequent, and it will be a high probability event that more than 90% of the new automakers will become martyrs.
Zhu Huarong defines this as the process of scouring the sand. No matter what kind of capital enters the automotive field, the laws of this industry must be respected. Capital entry is an opportunity for the automotive industry, but some speculative and disruptive capital will also encounter in this industry. To their Waterloo.
Zhu Huarong also summarized the four new characteristics of the current Chinese automobile industry: the uncertainty of policy changes, the harshness of industrial competition, the complexity of technological iteration, and the diversity of consumption conversion.
The uncertainty of policy changes externally comes from changes in the international situation, risks in overseas markets and changes in the international trade situation, while internally comes from changes in automobile industry policies and regulations.
The harshness of industry competition is mainly reflected in the spoilage of venture funds and speculators, but this is the inevitable way. To restore the industry to benign competition, it will inevitably go through vicious competition.
The complexity of technological iteration is manifested in the dazzling development of new technologies. “For example, Changan Automobile will have to expand the scale of technical personnel in the future research and development of new energy directions, and it must file a variety of technical solutions and directions for fear of misbehaving. treasure”.
The diversity of consumption conversion is manifested in the individualization, youth, and sharing of current consumers and consumption preferences, which will bring new changes. Zhu Guangrong concluded that no matter which car company, challenges and opportunities coexist. It is not right to oppose tradition and new forces. Only when the two are integrated and developed can a win-win situation.