The classification of car companies in the Chinese market is nothing more than joint ventures and independent brands, but just next year, there may be qualitative changes.
In 2022, the foreign ownership restriction on passenger cars will be lifted, what does it mean? That is to say, in addition to our own brands, foreign brands can occupy more shares in the joint venture car, and more exaggeratedly, foreign brands can build a factory independently in our country.
In fact, as early as 18 years, we began to prepare for this matter, from 18 years to this year, to put it bluntly, it was a transition period.
In 2018, the National Development and Reform Commission and the Ministry of Commerce issued the Special Administrative Measures for Foreign Investment Access (Negative List) (2018 Edition), which stipulates that the foreign ownership limit for special vehicles and new energy vehicles will be abolished in 2018; In 2022, the restriction on foreign ownership of passenger cars will be abolished, and the restriction on no more than two joint ventures will be abolished, and after a four-year transition period, the automotive industry will remove the restriction on the proportion of all shares.
So back to the beginning, why did our country's automotive industry have this regulation?
Then I have to say about our own brand, in the beginning, China's car companies developed very difficult, no money, no technology, no experience, no talent, and unlike us, foreign car companies develop better, more experienced, everything is better than us, but only a little missing, that is, the market, and our Chinese market, but is a big fat meat, so the formation of joint venture car companies, is a cooperative and mutually beneficial thing, we learn experience, and they are divided into the market, In order to prevent foreign brands from dominating one, it will be stipulated that the joint ventures of foreign brands cannot exceed two, which can not only limit the excessive expansion of production capacity, but also prevent the flooding of joint ventures.
It can be said that China is one of the earliest open automobile markets in the world, and it is precisely because of ": stupid birds fly first", so there is today's Chinese market, almost all well-known automobile groups in the world have joint ventures in China, such as the most common in the Japanese series are Toyota and Honda.
This also proves that our choice is right, after decades of development, to the present, in our country's car companies, whether it is independent brands or joint ventures, have developed like a fish, and even some independent brands have exceeded the joint venture car companies, so we can now cancel the share ratio restrictions.
So, what happens after this policy is abolished?
First of all, what will foreign companies do when they see this? Of course, it is an opportunity to increase the share ratio in the joint venture or to collect more benefits by building a factory, after all, two companies are also making money, one is also making money, as long as it is an individual who will definitely want to make money on their own, who will be willing to share half or more of the money they earn with others?
But on the contrary, this kind of face we ordinary people want to get things, how can car companies not think of it. When a car company has this idea or puts it into action, as long as it tastes the sweetness, it means that all car companies may develop in this direction. There are more and more people, but the cake is only such a large piece, so after the opening of investment restrictions, the competition in the market will undoubtedly be more intense, the weak will eat the strong, the weak will be out, the strong will stay, and it will also promote the development of enterprises.
So will the joint ventures all disappear? The answer is definitely no, at least not for now. Now foreign brands have no ability to stand independent in the Chinese market, will not lead to dissatisfaction, this no one dares to guarantee, but there are also prepared early, such as Tesla.
What about independent brands? Will it be impacted by this? In fact, I think it is an opportunity for independent brands, as mentioned above, there will be a sense of crisis to have motivation, no matter what brand, for this new market rule, we should actively move upwards, so that the more open Chinese market to the automobile power transformation.