Guangzhou, Beijing, Wuhan competes for the third pole of China's auto industry


The battle between Guangzhou, Beijing and Wuhan may not end there. However, in the course of competition, the "street lamp" of the Chinese auto industry will light up.

Changchun and Shanghai are two poles of the Chinese auto industry.

Last year, Changchun Automobile sold more than 1 million vehicles, creating a new record in the history of Chinese automobiles; and Shanghai’s position in the field of passenger cars is equally inviolable.
While Guangzhou, Beijing and Wuhan are all working hard to upgrade their heights, they are expected to become the third pole of the Chinese auto industry.

Guangzhou: Utilizing Japan, South Korea, aggressive

Eight years ago, Lu Ruihua, who was the governor of Guangdong at the time, announced in Beijing that "Guangdong Province no longer engages in the automobile industry." He was praised by the public opinion on one side and considered it a wise move. Unexpectedly, eight years later, Guangzhou's automobile production and sales volume has leapt to the fifth place in the country, with sales ranking fourth, and it has become one of the five major bases for China's automobile manufacturing industry.

The Guangzhou auto industry has been alive for the past two years: It has not only raised the fat of Guangzhou Golden Honda, a golden egg geese, but also has become Honda's export base. It recently exported 150 Honda JAZZs to Europe for the first time. In the competition with FAW, it got Toyota Camry, which is generally favored by the industry. At the same time, it competed with Wuhan in the Renault project and recently met the JAC narrow road that once occupied the first place in the commercial vehicle market.

Take a look at the territory of China's auto industry, Guangzhou's status can be described as unique: the automotive industry in this map is mostly concentrated in the line from the northeast, north, east China to the southeast coast, only Wuhan and Chongqing in the middle of the two lone stars flashing. According to the "street lamp theory," Guangzhou can be said to be the "last street light" of this automobile industry belt, and its radiation surface can reach the entire South China.

Stiglitz, winner of the Nobel Prize in Economics, believes that urbanization in China will be the engine of regional economic growth and will generate the most important economic benefits. More than 20 years of reform and opening up have formed three major economic circles. In 2004, the per capita disposable income of urban residents in Guangzhou reached 16,884 yuan, which surpassed Shanghai and Beijing. The urbanization rate in the Pearl River Delta has reached 75%, far exceeding the level of 45% in the Yangtze River Delta and 36% in the country.

In addition to its superior geographical location, abundant wealth accumulation and convenient logistics facilities, Guangzhou is also characterized by Hong Kong's influence. For a long time, car consumption has become more "Harbin". Even today, many old imported Japanese cars can be seen on the streets of Guangzhou, but the Peugeot 505 that was once produced in Guangzhou is nothing but a trace. This fascination with Japanese cars is rare in other cities. According to statistics, Guangzhou's output of 1/3 of the Honda is digested in the Pearl River Delta. Guangzhou Auto Show can get the support of Japanese cars and is classified as "A" by Toyota. It is estimated that this is not unrelated to this.

With the success of Guangzhou Honda, many auto parts manufacturers have poured in and Huadu has formed a complete industrial structure system. The rise of the parts and components industry has in turn attracted the vehicle manufacturers to settle in. The "Matthew Effect" has been fully implemented.

On June 28, Guangzhou Automobile Group Co., Ltd. was announced to be established and proposed that in 2010, the sedan's production capacity will reach 1.1 million; the commercial vehicle's production capacity will reach 230,000, and the parts and vehicle segments will develop simultaneously. In terms of shareholder structure, Guangzhou Automobile also introduced the private capital such as the Wanxiang Group of Lu Guanqiu for the first time, which reflects a more flexible mechanism and will be more transparent and open in operation.

In June, GAC and Hyundai Motors announced a joint investment of US$1.24 billion to establish a joint venture company for commercial vehicles. GAC could use this to strengthen its own strength in commercial vehicles. Also in June, Guangzhou also created a number one: Honda Automobile (China) Co., Ltd.'s cars were exported to Germany for the first time. This is the first time that Chinese-built cars have hit the developed areas of the European automobile industry.

Beijing: The spirit of the king

The Beijing Benz project has recently been approved by the Ministry of Commerce. This project still adheres to the 50% to 50% joint venture bottom line of the Chinese auto industry. It is said that the two sides have faced each other due to this issue. This has never been seen in the joint venture between Mercedes-Benz and other countries. Mercedes-Benz is able to compromise and some people believe that it is because of its "King's temperament".

At last year's auto show, Beijing was faced with such an embarrassment: Although the show was very successful, its auto industry foundation was relatively weak and it was difficult to support this pride. It is also the knot of their mind to enlarge the automobile industry as soon as possible.

Although Beijing was one of the earliest cities in China to develop passenger cars, Beijing Jeep Automobile Co., Ltd., the country’s first joint venture, was born, but the Beijing Jeep Road took a difficult path until it turned profitable until the first two years. After modern times, although the situation has changed, it still cannot change the situation of "light weight."

The influence of Beijing can radiate to the Bohai-Rim Economic Belt. This area, which accounts for 12% of China's territory and 20% of the population, is a huge market. Beijing has a large number of scientific research institutes, colleges and universities, the richest and most complete information environment in China, high-quality labor resources, and high-income groups with consumer demand. At the same time, it is also the country's largest automotive consumer market and distribution center. According to statistics, 1/10 of the country’s car ownership, 1/7 of the sedan, and 1/5 of the automobile sales are in Beijing. Beijing is also a barometer of China's auto consumption market. The sales of international big brands are certainly the first leg of China's entry into Beijing. Internationally renowned automobile companies generally set up offices and after-sales service systems in Beijing.

Beijing Automotive Industry and DaimlerChrysler Group have more than 20 years of relationship, so it is logical to introduce the most reputable brand in the automotive industry. Beijing occupies a favorable position in the economy car and personalized car (SUV) market, but its share in the mid-size sedan market is only about 10%. The introduction of Mercedes-Benz can make it a big achievement. In addition to the sedan project, the cooperation between BAIC and Mercedes-Benz will also help Beifang Foton, which is already ranked among the top in the country, in commercial vehicle projects, making it more emphatic in the face of FAW's commercial vehicle competition. It seems that Beijing’s automobile industry has formed a complete layout from high to low, from light to heavy, passenger cars and commercial vehicles go hand in hand. Mercedes-Benz's gold signs have given Beijing's king a sense of brilliance.

Wuhan: Phoenix Nirvana, Wing Feng

Last year, due to the poor performance of Fengshen Auto, Dongfeng Peugeot was not able to make a comeback. Together with the Chang'an Group's power, Dongfeng was out of the “big three” group. Shenlong has undergone a painful process of reducing losses. It is planned to cut costs by 2 billion yuan this year, reduce inventory use by 2 billion yuan, and lay off nearly 20% of its staff.

In fact, although the “big three” was squeezed out in terms of sales volume, Dongfeng’s performance was still the sum of Chang’an Automobile and Beijing Automotive Group in terms of sales; despite the loss of Shenlong, Dongfeng’s 2004 still relied on its commercial vehicles and The excellent performance of Dongfeng Nissan achieved a profit of 4 billion yuan in the whole year.

In 1988, the economist Zhang Peigang proposed the concept of "bovine tummy" to elaborate the theory of "Rise of Central China". He believes that China is so big that the open cities along the coast are like noses and the vast central regions are like cows. The long-term planned economy has caused the big bull of the Chinese economy to show itself in a quagmire. Pulling its head, pulling its tail, and moving its legs is important, but the most important thing is to hold up its belly, otherwise it is Can't stand up. Once it has stood up, what little dragons, little lions, and little tigers are not their opponents. And Wuhan is the center of the stomach. The importance of its geographical position and its radiation capabilities are beyond any doubt.

Since Dongfeng's head Miao Miao took Dongfeng from the Shiyan Mountain, he realized the importance of Wuhan to the east wind, and his many years of operation made Wuhan appear most emboldened in competition with Guangzhou and Beijing: with Guangzhou. The weight of the sedan and the weight of the sedan are different from those of the Beijing. Wuhan has never been a partial division and has considerable strength in both passenger cars and commercial vehicles. Coupled with the cooperation between Dongfeng and PSA Group and Renault, Wuhan can say that with the strength of a city, the essence of French cars has been condensed.

In the dispute between Guangzhou and Wuhan Renault, Wuhan’s position was at a disadvantage because of the strong base of Nissan’s joint venture factory in Huadu, but as Miao Wei took office as mayor of Wuhan, this competitive scale seems to have undergone subtle changes: The leader of a company must consider the maximization of development and interests of the company; as the leader of a city, it is naturally necessary to consider the interests of "local and city". Miao Miao, who had dealt with Nissan and Renault’s dual-CEO Carlos Ghosn for many years, abandoned business at this critical moment, and heralded Renault’s ultimate ownership.

With Renault helping out, Wuhan will add a heavy weight to Dongfeng Citroen, Dongfeng Peugeot and Dongfeng Honda. In the competition between the three places, although Guangzhou is aggressive, it may not be able to gain the upper hand. Wuhan may have a more eye-catching brilliance.

Naturally, the battle between these three places may not end on that day. However, in the course of competition, the "street lights" of the Chinese auto industry will be brightly lit and the dream of Chinese cars will soon be realized.

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