Over the past few decades, the independent brands of the Chinese automotive industry seem to be in the ascendant, not only because the Chinese automotive industry has developed relatively late, but also because it has been suppressed by many multinational car companies in the past.
However, after decades of development, China's automotive industry has achieved a qualitative leap forward, which can also be reflected in the upcoming full opening up of the domestic automobile industry to foreign equity ratios.
According to the news released by the National Development and Reform Commission, from January 1, 2022, China will abolish the restrictions on foreign ownership in passenger car manufacturing and the restriction that the same foreign investor can establish two or less joint ventures in China to produce similar vehicle products, which means that the domestic automobile market competition will become more intense in the future.
As we all know, in the early stage of the development of the domestic automotive industry, the development of China's automobile industry is relatively weak, the state wants to promote the development of the automotive industry must learn from it, but the introduction of foreign car companies may be annexed by foreign companies.
Therefore, in 1994, the state issued the "China Automobile Industry Policy", which stipulates that foreign car companies can only have joint ventures with two domestic car companies at most, and their shares in the joint ventures shall not exceed 50%.
In addition to the earliest joint venture car companies, Beijing Jeep, Shanghai Volkswagen and Guangzhou Peugeot, as well as the emergence of more joint venture car companies later, it can also be seen that the state hopes that under this restriction, more independent brands can achieve stable development.
Unfortunately, in such an environment, many car companies that rely on joint venture car companies to demand profits have also been spawned, and not only did not achieve technological improvement during this period, but were gradually eliminated by the market.
The most typical is Brilliance Auto and BAIC Group, whose independent business continues to lose money and only relies on joint venture business profits and technical support.
It is worth noting that after the state issued a new share ratio policy in 2018, after canceling the foreign equity ratio restrictions on special vehicles and new energy vehicles, Brilliance Auto was completely acquired by BMW Group, Jianghuai Automobile was controlled by Volkswagen, Sichuan Hyundai became solely owned by South Korea, Dongfeng Group and Kia Scattered Partnership, etc., which undoubtedly reflected the frustration of some independent brands, and eventually would only become a "pawn" of foreign companies.
Although the global automotive industry has gradually entered electrification, so that some domestic independent car companies with core technologies will successfully achieve a breakthrough, but also considering that the current development of domestic new energy vehicles is more dependent on the support of the state. Therefore, under the introduction of the new share ratio policy, it will help more independent brands to achieve the promotion of market position.
Instead of supporting car companies that do nothing, the state is more willing to choose car companies with achievements. Therefore, after the announcement of the progressive stock ratio policy, China's first wholly-owned automobile company to build a factory was officially established - Tesla, which is like throwing a catfish into a sardine school, making the new domestic car-making forces feel a sense of crisis.
Perhaps seeing the effective effect of the new shareholding policy, The new policy will be further optimized in China, and it is planned to abolish the foreign ownership limit of passenger cars in 2022, and at the same time cancel the restriction of no more than two joint ventures.
It is believed that with the introduction of new policies, there will be several situations in the market, either foreign car companies abandon the Chinese side and go it alone, or re-choose reliable partners. At the same time, foreign capital and independent car companies that do not conform to the development of the new situation will be eliminated at an accelerated pace.
Although this situation may lead to the elimination of many independent brands, as well as more strengthening of some foreign car companies. But at least for now, after the liberalization of the stock ratio, it is not necessarily a bad thing for local car companies, because independent brands already have the strength to break the wrist with foreign car companies, Geely, Great Wall, Changan, GAC, Hongqi and other strengths should not be underestimated, and the market will also look forward to the arrival of world-class independent brands.
From the initial acquisition of MG by SAIC and saab by BAIC, to the later acquisition of Borgward by Foton, Geely's acquisition of Volvo and Lotus, and then to geely's stake in Mercedes-Benz, BAIC becoming the largest shareholder of Daimler, etc., are the best evidence of the independent automobile brand from weak to strong.
After all, stock competition is more suitable for sustainable development, and now Great Wall and BMW to build an electric MINI brand - Beam Car, Geely and Daimler to build a Smart global joint venture company - Smart Motor Automobile, BYD and Toyota to build a pure electric vehicle research and development company - BYD Toyota Electric Vehicle and so on all reflect the existing advantages of independent brands.
At the same time, with the momentum of weilai, ideal, xiaopeng, gaohe, etc., it has responded to doubts through sales level, and even won the monthly sales championship of the market segment many times. From the stone crossing of the river to the successful completion of the curve overtaking now, the future domestic electric vehicles will also present a situation of a hundred flowers.
On the contrary, the Matthew effect of independent car companies will become more and more obvious, the stronger the stronger, the weaker the weak, the polarization will be more serious, and elimination is a historical necessity.
Such as Zotye, Junma, Lufeng, Hanlong, Lifan, Huatai, Bisu, Dongfeng Yulon, Brilliance, Hanteng, Mustang, Cheetah, Southeast, Qoros, Haima, Siwei, and other independent brands with weak sense of existence, should be prepared for business transformation or even exit the market. The times are changing, can not keep up with the pace of development, without core research and development technology and core competitiveness, is doomed to fall behind.
From this and the other, those new car-making forces that have not yet gained a firm foothold to achieve large-scale mass production and delivery should also judge the situation to confirm where to go next, whether to dry up hard or stop loss in time, it is time to seriously consider. Here, TV Jun is not a little famous.
Although the introduction of the new policy may accelerate the reshuffle of the domestic automotive industry, resulting in the elimination of many independent brands, even including some joint venture brands on the margins, this is at least to optimize the mechanism of domestic market competition, compared with retaining more brands without advantages, it is better to encourage more strong independent brands to achieve a breakthrough.
Judging from the market performance in the past two years, with the rise of traditional independent brands and new car companies, the market for joint venture brands has also shrunk, which means that domestic brands have a certain market competitiveness to compete with multinational car companies.
Inexplicable discrimination is the ceiling of autonomous cars, and Chinese cars will eventually appear on the world's highest stage, I am convinced.
Netizen 1: In the short term, it is a negative for domestic car companies, and it is good for the long term.
Netizen 2: Domestic car companies shuffle, the weak eat the strong, the survival of the fittest!
Netizen 3: Blind guess BMW will be the first foreign car company to taste early!
Netizen 4: Those domestic car companies that will only rely on joint ventures to make profits will die early and overshoot early!
Netizen 5: I believe that more and more domestic special cars will emerge, which is no longer a derogatory term.
Netizen 6: After growing up in the greenhouse for so many years, it's time to be on your own.