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Homegrown automakers pushing for self-innovations
Last Updated(Beijing Time):2010-10-11 09:43

Wang Weiwei

It is indicated by the supply and marketing data that the challenges self-owned brands facing with are much more furious than those last year. According to the statistics made by China Association of Automobile Manufactures (CAAM), from January to July, the sale of own-brand passenger vehicles is 3.5601 million, accounting for 46.43 percent of the total sales, which means their market shares are 1 percent lower than those of the first half year.


Along with the popularization of automobiles, self-owned brands went through a tough start and development and gradually kept their feet in domestic market with good products and market performance and furthermore, opened the door of international market.

In spite of challenges, self-owned brands own great potentials to have further development. Xu Changming, Director of Resource Development Department of State Information Center, have analyzed the four opportunities for the development of self-owned brands: firstly, the room for growth is still large in domestic market. On the one hand, the automobile market of China will be in a long-term stage of rapid development; on the other hand, the automobile enterprises have deep and various consumption levels because of unbalanced development of regional economy.


Secondly, the increase potentials in international market are great. The automobile enterprises with self-owned brands can develop products for both developing countries and developed countries. Thirdly, the enterprises with self-owned brands have an obvious increase in general strength. According to the figure released by China Automotive Technology and Research Center, in the first half year, self-owned brand cars took up 80 percent shares in the automobile market with sales price less than RMB80 thousand yuan, and are marching towards middle and high-end market. Fourthly, The Automobile Industry Restructuring and Revitalization Plan issued last year demonstrates the firm attitude of our government to promote the improvement of technological competence of automobile industry and to encourage the development of self-owned brands. This provides strong support for the self-owned brand cars to face challenges.

It is clear that opportunity does not mean success and the solution is to transform chance into competitive power. In the support of national encouragement policy, the automobile market of China expanded in 2009 against the background of international financial crisis. Meanwhile, self-owned brands grasped the opportunity, increased market shares, and are gradually accepted by the market, step into brand updating stage and restructured by means of merger, integration, restructuring and production expansion. In consideration of the market fluctuation in the first half year, it is a dilemma for automobile enterprises with self-owned brands to keep the brand or to pursue sales.

Some expert analyzed that it is the critical development period for self-owned brand automobiles in the next ten years. Under the increasingly furious market competition, self-owned brands and foreign-owned brands will enter into deeper competition. To be the final winner, self-owned brands shall attach importance to self-improvement.

The self-owned brand building is not in word but is embodied in action. True independent innovation shall depend on independent core technology and product development platform. It is a hard process but it is a required learning process.


In addition to limited accumulation, and rare human, property and stuff resources, the self-owned brands have to face intense global competition; therefore, the automobile enterprises with self-owned brands shall be "artful". Based on precisely market-oriented positioning, follow the strategy of competitive goods to enhance the success ratio and finally promote product quality and brand image.

Actually, our self-owned brands have been doing this. They abandon the product routes of low price and low quality, continuously improve technology and quality, make competitive products in smaller car field, and positively upgrade products and many enterprises keep key components in their own hands.... All these contribute to the increasing shares of self-owned brands in passenger vehicle market. More notably, self-owned brands are making no effort to match the advanced level in aspects of product security and after-sale service and have made some achievements. 

Many self-owned brands have found a suitable and proper way. However, the importance lies in whether they can resist temptation and market pressure and follow this proper way with sufficient patience and firm determination or not. 
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