Four major trends in domestic auto industry in 2014

Online car or challenge the traditional sales model <br> <br> in recent years, with the rapid rise in automobile production and sales of automobile consumption environment is undergoing rapid change, the traditional sales model is broken.

In 2013, the production and sales volume of automobiles achieved double-digit growth year-on-year, and they successfully crossed the 20 million mark. It is known as the "warm winter year" of automobiles. However, we cannot ignore that the sales profit of new cars is continuing to decline, and the profit of dealers is decreasing. With continuous shrinking, inventory pressure remains high, and at the same time some of the more unfamiliar terms such as auto finance and online sales are becoming more and more familiar to consumers. In 2013, Tmall sold a total of 10,700 vehicles during the "Double 11" period. In addition to shopping websites such as Tmall and, it held in verticals and portals such as Autohome, Easycar and The total number of orders for double 11” cars reached 168,000, with a total turnover of more than 23.5 billion.

"Online marketing was there ten years ago, but it was very immature. Now we see that Tmall and's online sales are actually the second wave of online sales. Now it's like this. The model is gradually maturing,” Zhang Junyi, a partner in the automotive industry at Roland Berger Consulting (Shanghai) Co., Ltd., said in an interview. “In China, 4S stores have always been the mainstream sales channel, but this single The marketing model is not sustainable, the emergence of more sales models, and gradually challenging the traditional status of 4S stores will become inevitable."

According to a market research conducted by the AutoTrader Group, consumers now spend 11 hours or more on the Internet to do research and spend 3.5 hours online to buy cars, including the time to the dealer. Mass consumers increasingly tend to understand the various properties, colors, and prices of automotive products through the Internet, and further develop orders to purchase cars through the Internet, but whether the online purchase model will replace the traditional model of car sales Controversy, after all, in many people's opinion, the car still needs to take the actual experience of driving after the decision to make a purchase, in addition to maintenance and after-sales service still need to be completed online. However, with the rapid development of the Internet, more innovative marketing methods will be available in the future.

Auto finance market will usher in development in the spring <br> <br> research "2012 Automotive Financial Report" by the China Minsheng Bank and jointly issued by Deloitte showed that car production processes create only about 30% of the profits, and distribution and after-sales service The link can bring about 70% of profits. Auto finance services will play an important role in this 70% of profits.

In recent years, SAIC, GAC, FAW, Dongfeng, Chery and other domestic automobile companies have successively established auto finance companies, and these financial companies often attract more and more consumers with low threshold, easy application, and quick approval. attention. However, the market share of China's auto consumption finance is still quite different from that of foreign developed countries. It is reported that the penetration rate of auto finance in some regions has reached 15% to 20%, but compared to the United States, auto finance is in the region. Nearly 70% of the penetration rate still has a huge room for improvement. “Buying a car through loans and other financial means abroad is a very common thing, but it is still not widespread in China and its penetration rate is less than 20%. However, we have also seen the rapid development of car finance in recent years. With the growing maturity of domestic consumers, the automotive financial market is ushering in a spring of development. This is particularly loved by the younger generation of consumer groups. The state has also issued some related policies in this regard, and has proposed a combination of production and financing. The slogan.” The end of 2013, China’s auto industry financial synergy innovation platform was established. This platform was established to explore the synergistic innovation model of China’s auto industry finance and jointly promote the coordinated development of China’s auto industry capital, industry and finance. The establishment of this platform will also attract auto parts companies that have not been included into the mainstream of auto finance before, and will provide more continual financial support for the parts companies in product design, corporate cooperation, and brand building.

Independent brand's development prospects in 2014 are not optimistic

In 2013, a total of 7,222,000 self-owned brand passenger vehicles were sold in China, an increase of 11.4% year-on-year, but the share of passenger car sales fell by 1.6 percentage points, continuing to show a downward trend. In recent years, joint-venture car companies have lowered the prices of auto products, announced high-profile announcements of low-priced vehicles, and accelerated the distribution of sales outlets in third- and fourth-tier cities, which has further squeezed the space for auto brands. In addition, as more cities adopt limit-line purchase policies and vehicle shortages such as traffic congestion and shortage of parking spaces, the adverse macro environment has also brought more pressure on sales of self-owned brands.

“Sometimes it feels that the self-owned brand car is really difficult. On the one hand, it is necessary to increase sales, but on the other hand it changes the situation of low profit or even zero or negative profits of individual models. Everyone understands that developing a marketable model and increasing the brand's potential is inevitable. However, the fact is that in terms of expanding sales volume, the market share has been restrained and eroded by international car companies, and in terms of raising premium prices, it has been difficult for us to do so for many years, and the practice has often been through increasing the number of allocations. To please customers, but this method is difficult to continue.” Zhang Junyi further stated that “under the same production conditions, how do you achieve lower costs than others, international brands are also building factories in China, and domestic brands are also building factories in China, Isn’t it only when we use suppliers that offer lower product prices, or if we build factories in more remote locations, can we achieve low costs? The answer is no, it’s not long-term support for independent brands with low cost and low price. The mode of operation of the price, breakthroughs in core technology, there are still many defects in the past many years, the next year It is still difficult for the development of the main brand, and the difficulty factor is still magnified, especially in 2014 when many new models are listed. According to surveys, the industry is not optimistic about the development prospects of self-owned brands in 2014. Most people do not It is optimistic that it can reverse the unfavorable situation and the market share will be further eroded. As more and more cities join the ranks of purchase restrictions, the external market environment of self-owned brands will also deteriorate further, but we should also see that some independent brand enterprises are in the product. Quality and branding have made great progress. At the same time, they are actively making breakthroughs in the mid-to-high-end market. For instance, Great Wall, Geely, BYD, and other car companies have, in certain areas of expertise, some of them even chased or even surpassed joint venture brands. strength. Of course, there are a series of factors that are favorable for both time and place. For example, Chinese consumers are now hotter than SUVs, and many SUVs have received excessive profits. It remains to be seen how independent brands will achieve breakthroughs as a whole.

The future development of parts and components companies still faces various challenges At the end of 2013, Roland Berger Management Consulting and Lazard co-published the “Global Auto Parts Suppliers Research Report 2013” ​​showing that the global auto parts supply industry is profitably stable at high levels: 2012 With EBIT (Earnings BeforeInterestand Tax, profit before tax and profit) in 2013, the profit rate was 6.5%. The biggest areas of profit for suppliers are chassis, transmission systems and tires, while profits in interior trim components will shrink further. The industry is still optimistic about the development prospects of the next few years and believes that EBIT margin will remain at around 6%. However, at the same time, business complexity and risk will continue to increase, which is still a lot of pressure on suppliers.

Let's take a look at the development of domestic parts and components companies. According to the third quarter report of 74 parts and components companies listed on the Shanghai and Shenzhen stock markets at the end of 2013, the total operating revenue of 74 auto parts companies was about 252.238 billion yuan. The operating income of the companies formed grew steadily compared to the same period of last year. “At present, the profits of Chinese suppliers are still very high, but there are also many challenges in the future.” Each year, the OEM has a price cut for parts suppliers. The profitability of suppliers continues to be squeezed. In addition, domestic parts and components The lack of core technology of manufacturers, blindly fighting for prices, serious vicious competition in the market.

“Suppliers profit the biggest areas in the chassis, transmission systems and tires, an important reason for high profits is high technology content, with high added value, at the same time, some parts suppliers break through the aftermarket according to their own product characteristics. The profit of many products such as tires in the aftermarket is much higher than that of the entire vehicle OE market, which is a big guarantee for its high profit margin.” Zhang Junyi told reporters. In recent years, international parts companies such as Bosch, Denso, and China have also stepped up their pace in China's aftermarket. With the rapid growth of China’s car ownership, the automotive aftermarket has great potential for growth, and how to seize this In terms of development opportunities, Zhang Junyi believes that companies must identify their core competencies, strengthen their dominant position, optimize their operating models, and constantly improve their own technological capabilities and innovation capabilities, especially in the post-market. The key to their success lies not only in the How to build products, but in the channels and brands, and so on.

Similarly, we have also noticed that some domestic parts and components companies have made certain progress in continuously improving their competitiveness. Some parts companies have started the process of internationalization. For example, on September 15, Fast established a factory in Thailand. Yao Glass announced that it will invest in the establishment of wholly-owned production lines in Kaluga, Russia and Ohio, USA. The initial appearance of an internationalized layout also indicates that the strength of domestic parts and components companies will continue to increase. Whether it is an ancillary market or a post-sales business, it will only identify itself. Positioning, while continuously strengthening the core competitiveness can win in a fierce competitive environment.

Corn Sheller

Corn Sheller,Hand Crank Corn Sheller,Maize Sheller,Large Capacity Maize Sheller

Shuangfeng Nongjiabao Machinery Technology Co., Ltd ,

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