Abstract:With the support of policies, the mainland automobile market is developing well. Domestic automobiles not only have an increasing market share in the domestic market, but also gradually occupy the international market. From 2019 to 2023, the number of mainland automobile imports continued to decline, while the number of exports rose rapidly. In 2023, the number of automobiles imported from mainland China will fall to 800,000 units, a year-on-year decrease of 8.9%, while the number of exports will increase to 5.22 million units, a year-on-year increase of 57.4%.
1. Definitions and Classification
Automobile refers to a vehicle that is powered by power and has four or more wheels and is carried off-track, including a vehicle connected to a power line, which is mainly used to carry people or goods; According to the national standard GB/T3730.1-2022, automobiles can be divided into passenger cars, buses, trucks, and special vehicles. In addition, according to the power source of the car, it can also be divided into traditional fuel vehicles, electric vehicles and hybrid vehicles.
Second, industry policies
1. Competent authorities and regulatory system
The automotive industry adopts a regulatory mechanism that combines government supervision and industry self-discipline, with the National Development and Reform Commission and the Ministry of Industry and Information Technology in charge of the industry, and the industry self-regulatory organization being the China Association of Automobile Manufacturers.
The main responsibilities of the National Development and Reform Commission include: responsible for organizing the formulation of comprehensive industrial policies, promoting the implementation of innovation-driven development strategies, responsible for comprehensive investment management, planning major construction projects and the layout of productive forces, and formulating and promoting the implementation of policies and measures to encourage private investment. The main responsibilities of the Ministry of Industry and Information Technology include: formulating and implementing industry plans, industrial policies and standards, monitoring the daily operation of the industrial industry, promoting the development of major technical equipment and independent innovation, managing the communications industry, guiding and promoting the construction of informatization, and coordinating and maintaining national information security.
Founded in May 1987, the China Association of Automobile Manufacturers (CAAM) is a social organization legal person, with the responsibility of implementing national guidelines and policies, safeguarding the overall interests of the industry and revitalizing China's automobile industry.
2. Industry-related policies
In 2023, the National Development and Reform Commission, the Ministry of Commerce, the Ministry of Industry and Information Technology and other departments will successively release a number of policies to encourage and support automobile consumption and enhance the vitality of the automobile market. In June 2023, the Ministry of Commerce issued the "Notice on Organizing and Carrying out Automobile Consumption Promotion Activities", which made arrangements for the "Hundred Cities Linkage" Auto Festival and the "Thousands of Counties and Towns" New Energy Vehicle Consumption Season activities. New energy vehicles are the hottest market segment in the automobile market in recent years, and state support has been increasing. In July and August, the National Development and Reform Commission and other departments issued the "Several Measures to Promote Automobile Consumption" and the Ministry of Industry and Information Technology issued the "Work Plan for the Steady Growth of the Automobile Industry (2023-2024)", both of which proposed to encourage and support the consumption of new energy vehicles. In December, the Central Committee of the Communist Party of China and the State Council issued the "Opinions on Comprehensively Promoting the Construction of a Beautiful China", which clearly stated that by 2027, new energy vehicles will strive to account for 45% of new vehicles. New energy vehicles (NEVs) are the main driving force for the growth of China's automobile production and sales.
Third, the development process
Compared with developed countries, the mainland automotive industry started late, and for a long time, there is a situation of being suppressed by foreign advanced technology and brands. In the early days of the founding of the People's Republic of China, the production of automobiles on the mainland mainly relied on the equipment and technology of the former Soviet Union. After entering the 21st century, the policy support in the field of automobiles in mainland China has been increasing, and the demand for domestic automobiles has also continued to increase, but domestic auto brands are still concentrated in the low-end product market. After years of development, Continental has become the world's largest automobile producer and seller. In addition, with the efforts of policy support and enterprise research and development, a number of distinctive and competitive car companies have also been formed in China. Especially in recent years, the rapid development momentum of domestic new energy vehicles has broken the long-term monopoly of the domestic automobile market by foreign brands, and the international influence of domestic new energy vehicle brands has been improved.
Fourth, industry barriers
1. R&D capability barriers
The barriers to R&D capabilities in the automotive industry are mainly reflected in two aspects: technology and talents. The technical barriers are mainly because automotive product development involves multidisciplinary knowledge, such as vehicle design, chassis, body engineering, etc., which requires enterprises to have deep technical accumulation and innovation capabilities. The talent barrier is because the automotive industry needs a large number of professionals, especially leading design engineering talents and design experts with original capabilities, and the lack of talent pool constitutes a talent barrier in the industry.
2. Customer and brand barriers
Customer loyalty and brand influence have an important impact on auto companies to open up the market and increase market share, and they are also the barriers for new companies to enter the automotive industry. Customer loyalty barriers refer to the fact that once an automobile company has established a stable customer relationship and brand image, it will form a certain degree of customer loyalty, and it is difficult for new entrants to quickly seize market share. The brand influence barrier refers to the fact that the well-known brand has a high visibility and reputation in the market, which can attract more consumers and increase market share, while new entrants need to make more efforts to enhance brand influence.
3. Financial barriers
Automobile research and development, production line construction, marketing and supply chain management all require a large amount of capital investment. First of all, automotive R&D is a highly capital-intensive process that requires huge investments in the development and testing of new technologies and models. Secondly, the construction and maintenance of automobile production lines also require huge funds, including factory construction, equipment purchase, production line upgrades, etc. In addition, companies also need to invest a lot of money in the process of marketing and brand building to enhance brand awareness and attractiveness. Therefore, the financial barriers in the automotive industry not only require enterprises to have strong financial strength, but also need enterprises to have efficient capital operation capabilities and fine cost control capabilities.
Fifth, the industrial chain
1. Analysis of the industry chain
The upstream of the automobile industry chain is dominated by parts supply and raw material supply, mainly including auto parts, steel, aluminum alloy, tires and other industries. The midstream is the manufacturing, production and sales of complete vehicles. The downstream is dominated by the automotive aftermarket, including auto repair and beauty.
The automotive industry chain is shown in the following figure:
Note: This article is transferred from the Zhiyan Industry Encyclopedia platform, if you need to get more industry information and customized services, you can enter the official website of Zhiyan Consulting to search and view.
Zhiyan Industry Encyclopedia is a production and research tool platform launched by Zhiyan Consulting, which is committed to providing you with a full range of encyclopedic industry information query services. Zhiyan Consulting practices the corporate mission of driving industrial development with information, improves and enriches enterprise methodology, relies on the industry encyclopedia platform to enhance the value of information, and continues to empower industry development and enterprise investment decision-making. As a one-stop systematic research tool for the automotive industry, the automotive industry encyclopedia comprehensively summarizes the knowledge and information of the automotive industry, covering the definition, classification, policy, industrial chain, competition pattern, development trend of the automobile industry, etc., and relies on information technology to establish an intelligent interchain industry knowledge graph, providing in-depth insight and comprehensive information for industry research practitioners and relevant investors.
Zhiyan Consulting takes "using information to drive industrial development and empower enterprise investment decision-making" as its brand concept. Provide professional industrial consulting services for enterprises, including high-quality industry research reports, special customization, monthly topics, feasibility study reports, business plans, industrial planning, etc. It also provides weekly/monthly/quarterly/annual reports and customized data such as regular reports, covering policy monitoring, corporate dynamics, industry data, product price changes, investment and financing overview, market opportunities and risk analysis, etc.