Chunlan has built a car, Bird wants to build a car, Midea, Xinfei and Oaks have to build a car. In the past few months, private enterprises in the home appliances and IT industries have fought hard to enter the automobile manufacturing sector, and they have long-sleeved arms and humour. According to incomplete statistics, since the beginning of 2002, the private capital that has entered the vehicle manufacturing circle has reached 11.7 billion yuan, and the “third force†in addition to state-owned and foreign capital in the Chinese car industry is rapidly growing.
This year, domestic private enterprises are making their mark on the auto manufacturing scene. According to the latest statistics report of the famous securities company Galaxy Securities, since last year, the capital amount involved in the Chinese-funded foreign-funded M&A case of domestic car companies has been approximately RMB 31.4 billion, and the domestically adjusted restructuring has involved RMB 11.5 billion. At the same time, Private enterprises also contributed 11.7 billion yuan of funds to the domestic automobile manufacturing industry. Observing the dynamic flow of these three capital flows, we can see that the amount of capital involved in foreign-led, domestic-capital restructured mergers and acquisitions has significantly decreased in the total M&A scale in the domestic automotive industry, while the private-enterprise capital inflows have shown a significant upward trend.
In fact, since 1999, when Geely Automobile opened up a private company to build a vehicle, domestic private enterprises have never stopped dreaming of building a car. In 2000, Wanfeng Auto Group entered the auto market stage. In 2001, Brilliance again made the Chinese auto market noiseless. Nowadays, there are "Court Together" with Jiangsu Chunlan, Ningbo Bird, Guangdong Midea, Henan Xinfei, Ningbo Oaks, Xi'an BYD, Xiaoshan Wantong and Ningbo Huaxiang, as well as Jiangsu Zhongda and Shanghai Huapu. Zhejiang Wanxiang, Chongqing Hongyan, Dandong Shuguang, Hebei Great Wall, Guangzhou Baolong, Hunan Sanyi, Guizhou New Century, and nearly 30 private enterprises, some of which have been available models, and some are actively planning. According to authoritative statistics, so far, domestic private automobile manufacturers have produced more than 200,000 complete vehicles. After three years, this figure is expected to increase by 10 times.
Private enterprises "play" courageously
Among the 117 billion yuan of civil capital, the most notable example of this is Xi'an BYD. The privately-held listed company, which previously produced mobile phone batteries, acquired 77% of Xi'an Qinchuan Automobile Co., Ltd. for 269 million yuan, making it the first Chinese private enterprise to acquire state-owned automakers. Wang Chuanfu, chairman of the company’s board of directors, announced on the day of his appointment as chairman of the new company that the main purpose of the holding “Qinchuan†is to introduce BYD brand electric vehicles to the national market. The vehicle is equipped with 0.8 L, 0.9 L, and 1.1 L3 engines. The price is about 14 million. By June 2004, the company will also launch 5 to 6 new models developed independently, with displacements ranging from 1.3 L to 3.0 L, and “comprehensive participation in the competition in the Chinese auto marketâ€.
In this year's domestic auto industry, there are still many names of private companies that have caused a sensation like Wang Chuanfu. On April 3, Xiao Shanren Tong Jiangliang, Wuhan Economic Development and Investment Corporation and Wuhan Light Vehicle Company respectively invested 80 million yuan, 15 million yuan and 5 million yuan, and registered Wuhan Zhongyu Automobile Co., Ltd. to take over the production equipment of Vantone Automotive. Product catalog, inherited Vantone brand. On April 17th, Tong Jiangliang, who was wading for the first time, released a pronoun in Wuhan: “Take 20 high-end passenger cars with a unit price of about 2 million yuan before the end of the year. It is estimated that by 2008, the output value of Zhongyu Automobile will reach 5 billion to 10 billion yuan. Yuan Renminbi."
In early June, Bo Bo, deputy president of Ningbo Wave, a well-known private mobile phone manufacturer in China, said that the company had thought of building a vehicle long ago and it has been implemented since last year. For more than a year, they have been carefully inspected and thoroughly negotiated all over the country, but “the operating cycle of automotive projects is relatively long and now is just starting.â€
On August 28th, another private enterprise “Huxiang Zhongxing†produced the “Chiye†multi-functional recreational vehicle officially put into the Beijing market. Huaxiang Group was originally a private enterprise mainly engaged in the production of auto parts in Xiangshan, Ningbo. In May this year, it reorganized Hebei Zhongxing Automobile and signed a five-year cooperation agreement with IAHA International Automotive Holdings Co., Ltd. to produce SUVs. It has four vehicle production bases such as military vehicles, pickup trucks, multi-functional leisure vehicles and off-road vehicles, as well as a professional automotive R&D and design company, with an annual production capacity of more than 100,000 vehicles.
The future is uncertain
Compared with Sino-foreign joint ventures and state-owned enterprises, private enterprises have their own advantages in building a car. TANG Wan-li, chairman of the board of directors of Delong International Strategic Investment Co., Ltd., holding the Hunan Torch and establishing Chongqing Hongyan Company to enter the heavy-duty vehicle manufacturing industry, believes that private-owned enterprises have two inherent “talentsâ€. First of all, private enterprises have their own right to speak. Unlike many domestic joint-venture auto companies, private auto companies can independently decide on product introduction, price positioning, and marketing methods. Brilliance uses this autonomy to select the models that the market expects, and Kyrgyzstan uses it to formulate a low price, Hongyan. Many companies such as Xindi and Huapu rely on it to recruit troops. BYD relies on it to immerse itself in electric vehicle technology and hopes to create a national brand. It is undeniable that this kind of autonomous discourse power will bring great benefits to the operation and operation of private enterprises.
The second talent is financial strength. Any private enterprise that enters the automobile manufacturing circle has the support of the local government behind it. The bank loan is close to them. From 1997 to 2002, the Torch Torch's funding to the automotive manufacturing industry was approximately 400 million yuan. BYD's investment in electric vehicle production also reached 2 billion yuan. Geely spent 1.3 billion yuan to build only two plants. Judging from these figures, private companies in the automotive industry are not too small.
However, it is undeniable that there are also many inherent weaknesses in private enterprises. First of all, it is very difficult for private enterprises to get good brands and good models. At present, except for Brilliance, nearly 30 private-owned car companies are not holding world-class brands. In the same year, a veteran who had a reputation in the financial and automotive worlds talked about a car project with a famous car multinational group. As a result, he suffered a lot because of the identity of his own private enterprise. He finally had to cry out to the community: “Privately, only a company was divided. The economic composition is not a measure of the strength of the company!"How many partners will understand it?
The second disadvantage of private companies is that they may not be the real beneficiaries of industry policies. At present, there are only two kinds of "identity" of domestic automakers. One is completely state-owned or partly state-owned, and the other is private. Jia Xinguang, chief analyst of China Automotive Industry Consultation and Development Corporation, believes that if private enterprises are mismanaged, they will naturally be eliminated by the market. However, if they operate too well, they will take away the "good days" of state-owned enterprises. Because China's auto industry still brings There is a deep-seated economy and the state-owned enterprises are crying. Someone will come out and intervene. The ultimate result is that they are still private enterprises.
In addition, there is a concern in the industry. Private enterprises are investing in billions of dollars in incremental capital to enter the auto manufacturing industry. In a short period of time, it may be difficult to digest. Just as there will be more than a thousand troops and a single wooden bridge, it will certainly be a small number of people who are squeezed into the abyss. The resulting risks will be enormous. Although in the current era of China’s car industry, it is an inevitable trend that private enterprises have emerged from the ground. Not only do we see that it has become a reality, but we will witness its continuous development, but thousands of troops are pouring into the car. After all, the risk is too high, and private enterprises must also be careful.