The internationalization trend of China's auto industry is obvious

(I) The rapidly developing market has laid a solid foundation for the internationalization of China's auto industry

1. China has become the engine driving the development of the global automotive industry.

(1) The rapid development of the automotive consumer market has enabled China to become the world's fastest-growing area for sales of automobiles. Its sales volume has increased from 3.8% in 2000 to 15.9% in 2008. In 2008, the country’s total automobile production was 9.35 million, and its sales volume was 9.38 million. China has become the world’s third largest automobile producer and the second largest consumer of automobiles.

(2) China's auto production has grown rapidly. Entering the 21st century, the increase in China's auto production is the fastest in the world, which has enabled the countries and multinational corporations in the world to expect more from their development in China.

2. The characteristics of automotive product trade reflect the trend of increasing internationalization.

(1) The total volume of import and export trade keeps increasing. From 2000 to 2008, the growth rate of China's auto import and export trade kept rising in the fluctuation, and the growth rate of export trade was obviously higher than that of imports.

(2) The export amount exceeds imports. After 2006, the export volume of China's auto vehicles and components exceeded imports.

(3) The vehicle export structure has changed significantly. In 2008, the export volume of passenger cars was close to that of trucks, and the proportion of passenger cars' exports was significantly reduced. In 2000, the export of cars was lagging far behind imports. By 2008, the number of cars exported had exceeded imports.

The above situation shows that the export structure of the vehicle has changed and the added value of product exports has been continuously improved.

(4) Commercial vehicles maintain a competitive advantage and become the main product for vehicle exports.

(5) Parts exports play a dominant role. From 2000 to 2007, the proportion of the export value of spare parts to the total export volume of auto products was always between 59% and 78%, and the advantage has been very obvious.

Through the analysis of China's auto trade competitiveness index (TC index), we find that the overall level of international competitiveness of China's auto product import and export in 2000 is still relatively low, and it has been negative until 2005, until it reached 0.213 in 2007. It is a weak competitive advantage; the automobile vehicle trade competitiveness index has always been negative, and it is a very weak competitive advantage; auto parts have turned negative from positive values ​​(2005), and reached 0.317 in 2007, entering the middle competitive advantage area. , showing a relatively good momentum of development.

In the 21st century, China’s total vehicle export growth rate is higher than that of other types of automotive products. This indicates that China is becoming a world-leading automobile exporter. However, the overall level of China’s auto industry’s international competitiveness in import and export is still relatively low. Even very weak.

(B) China's auto industry has become an important part of the world's auto production system

1. The sales volume of passenger cars produced by major multinational corporations in China continues to increase.

In 2007, with the exception of Renault, all multinational automotive companies have products manufactured in joint ventures in China, and the production of GM, Volkswagen, and Honda companies in China exceeds 10% of their global production. In particular, after the financial crisis, multinational corporations attached great importance to automobile production of Chinese companies.

2. More Chinese products.

In order to compete for the Chinese market, multinational corporations are no longer simply taking foreign drawings to produce in China, but have begun to focus on improving the local adaptability of products in the Chinese market.

Shanghai Pan Asia's engineering designers have improved and newly designed many GM global models based on the aesthetic perspectives and operating habits of Chinese users. Products such as New Excelle, New Regal, and New LaCrosse are all products that have been successfully improved.

3. Multinational corporations began to pay attention to the construction of local production systems, R&D systems and other systems in China.

At present, SAIC and U.S. General Motors, SAIC and VW, Dongfeng and Nissan of Japan, Shenlong and Guangzhou Honda have established joint venture R&D centers in China. In September 2008, GM China Forward-looking Technology Research Center broke ground in Shanghai's Pudong New Area. This is the first wholly foreign-owned automobile R&D center. PSA Peugeot Citroen also stated that it wants to establish a wholly-owned automotive R&D center in Shanghai.

4. Foreign capital entering China has accelerated the internationalization of China's auto industry.

The methods, modes, processes and lessons learned of multinational corporations entering China have provided a good demonstration and inspiration for Chinese-funded enterprises, opened up an international perspective and accelerated the process of internationalization.

(III) Chinese enterprises are vigorously promoting the internationalization process in various ways

1. Give full play to comparative advantages and promote the direct export of products.

(1) The pressure of competition has allowed Chinese auto companies to grow faster and take a place in the low-end market. In 2007, the number of auto vehicle exports was ranked among the top 10 countries and regions. Except for the United Kingdom, the rest were all developing countries. Of the top 10 auto exporters in 2007, 4 were export-oriented vehicles and heavy-duty trucks. Trucks, 2 are mainly exported to trucks. This shows that the vehicle export is mainly in developing countries, and the models are mainly commercial vehicles.

(2) Chinese auto companies actively seek opportunities to enter the developed countries. Since 2000, Hafei, Geely, Great Wall, Changfeng, BYD, and Brilliance and other independent companies have successively participated in the Geneva Motor Show, the Frankfurt Motor Show, and the North American Auto Show in Detroit. This is the signal and starting point for China’s self-developed cars to the world.

(3) Pay attention to the number of brands and pay attention to brand building. At the 2009 Shanghai International Auto Show, Geely added three brands: Global Eagle, Emgrand and Shanghai Yinglun. Chery added three brands, namely Ruiqi, Weilin and Kairui, and began the brand promotion and expansion.

(4) Parts exports are mainly developed countries, indicating that China's auto parts have taken a certain position in the global automobile production chain.

2. Utilize historical accumulation and historic opportunities for overseas investment.

(1) The experience of joint ventures and cooperation learned from multinational automotive companies in the past 30 years of reform and opening up has enabled local production overseas. Chery has set up seven factories in six countries including Russia, Ukraine, Iran, Egypt, Indonesia and Uruguay. In addition, Great Wall Motor has factories in Ukraine; Geely has CKD factories in Indonesia; FAW and Mexico Salinas Group have joint venture factories; Sinotruk has joint venture factories in Russia, and so on.

(2) To set up an R&D center overseas to "develop brainpower". In 2003, Chongqing Changan established an overseas R&D center in Turin, Italy, and a European design center in 2006. In 2007, Jianghuai established overseas R&D institutes in Italy and Japan; Zhongshun set its automobile modeling center in Los Angeles, USA, etc. .

(3) Accelerate the acquisition of foreign companies. In recent years, Chinese companies have been accelerating the pace of acquiring foreign auto companies.

In 2001, Wanxiang Group acquired US 21% equity of UAI Corp. for US$2.8 million. In October 2004, SAIC acquired 48.92% equity of South Korea Shuanglong with US$500 million. In March 2007, SAIC acquired approximately RMB67 million. MG Rover 25, 75 two models, a full range of engine intellectual property rights; in April 2007, Nanjing Automobile Group acquired more than 50 million pounds of all existing assets of Rover Motor; in March 2009, Geely acquired the Australian automatic transmission the company.