Lessons from China's automobile industry

Two controversies have emerged in the development of China’s automobile industry.The first is the role of government approval in economy of scale,industrial concentration and redundant construction.Second is the role of foreign-funded companies in the growth of China’s automobile industry.Correct understanding of these matters offers a unique"intellectual asset"for approaching the institutional and policy matters of China’s automobile industry and other sectors.It also serves as guidance in the selection of growth patterns.

Overview of Energy and Environmental Issues in the Passenger Automobile Industry

The global supplies of petroleum are on the decline and the dwindling resource has become increasingly difficult to access. Improved technology is increasingly been required to access petroleum that is in hard to reach geographical environments and has chemical composition that is not entirely compatible with existing processing techniques. Alternative energy involves energy from renewable and non-depleting sources such as wind and solar, offer many opportunities for research and development and are been widely developed globally. These sources of energy are expected to reduce the threat of a changing climate, air pollution and oil dependence caused by the automobile industry. There are many economic, environmental and societal benefits of employing various alternative energy sources or options in the passenger automobile industry for motive power. Transitioning from a monoculture of hydrocarbon-based transportation will be just as signify- cant as investments in research and development needed to develop a portfolio of cost-competitive and safe alternative powertrain technologies that can effectively retire the fossil fueled internal combustion engine, without much of any economic stress. In this work, we couple energy and environmental issues to obtain a realistic indication of the future of alternative powertrain technologies for the future of the passenger automobile industry.

Automobile Industry Ushers in Reform and Internet of Intelligences

In recent years, electric vehicles have become popular among national governments, sectors and the general public. During January to October of 2017, the production output of China＇s new energy vehicles had surpassed 0.5 million units,

New Energy Automobile is Drawing Industrial“Roadmap"

According to the White Paper on Development of 2016New Energy Automobile Electronic Industry released recently by the Electronic Science 8c Technology Intelligence Research Institute of Industry and Information Technology Ministry,China’s new energy automobile electronic industrial scale achieved nearly RMB 4.5 billion in 2015 and it is expected to reach RMB 23.7 billion by 2020 with

Environmental improvement or industry enhancement?A case study on the impact of environmental regulations on Chinese automobile industry

Developing countries are encouraged to pursue environmental protection and industrial development simultaneously,although it is a big challenge to reach win-win situation.This study explored the relationshipbetween environmental regulations and the industry enhancement in developing countries through conducting an empirical analysis of the impact of environmental regulationson Chinese automobile industry.In the empirical analysis,a total of64Chinese automobile enterprises were investigated,the Malmquist index of total factor productivity was adopted to determine the productivity of Chinese automobiles,and the two-step system Generalised Method of Moments(GMM)estimation was used for the regressionanalysis.The resultsshowedthat environmental regulations negatively affected the productivity and technology of Chinese automobile industry during 2004-2018.The production costof automobile industry in China was rising sharply,and the productivity and technological progress of Chinese automobile industry were impeded significantly.The case of Chinese automobile industry illustrated that strict environmental requirements can negatively impact industry productivity by increasing production costs and squeezing industry profits.

China Autos' Past, Present & Future—An Interview with Miao Yu, Deputy Director of the Automobile Industry Department, Ministry of Machine-building Industry

After the second world war, Japan and Korea realized their dream for automobiles. The development of the automobile industry has given an impetus to their whole national economy. When will the Chinese dream for automobiles come true? With this question in mind, our reporter interviewed Mr. Miao Yu. He briefed the reporter on the past,

A Historical Approach on the Opportunity to Acquire Technology Development Capability in Turkish Automobile Industry

Turkey has given importance to the development of the automobile industry since the Ottoman period.While the Ottomans,who were aware of the development process of the automobile industry in the world,provided transportation by horse-drawn carriage,they thought of importing automobiles for the Sultan and high-level bureaucrats in an effort to switch to automobile transportation.However,after the proclamation of the Republic,automobile production started,just like airplanes.While a factory was established for the production of a domestic aircraft,the first automobile production facility was established in Istanbul in 1929 by the American Ford company.This factory was closed after a short time due to the world economic crisis.After the activities of the Kayseri Aircraft Factory,which lasted until 1948,came to an end,this time,Revolution car prototypes could be manufactured completely domestically in 1961.After the project,which did not go into mass production,the KoçGroup started to produce the domestically-made Anadol car with technology transfer from multiple sources in 1967,but the production of Anadol continued until 1984.In 1971,Renault cars started to be produced under the French Renault license,and TOFAŞcars under the Italian FIAT license.Towards the end of the 1970s,creative imitation applications were made in TOFAŞcars with the bird series.In the 1990s,the production of Japanese Honda and Toyota and South Korean Hyundai cars started.In 2011,the idea of producing a domestic automobile emerged,the Devrim automobile was taken as an example in this project,the first Togg prototype was manufactured with technology transfer from multiple sources in December 2018,and it was announced that mass production would begin in March 2023.The 12-year period from 2011 to 2023 is too long for the creation of a domestic automobile.It has been understood that this long process has been passed in order to regain the pre-1980 level of technological ability.However,the most important thing is the transition from the creative imitation stage to the innovation stage.Our wish is that this process can be shortened with phase skipping approaches.

Chinese Automobile Industry’s Position in the Global Value Chain and Its Development Paths Under New Circumstances

While analyzing how the global automobile landscape has shifted and what role the Chinese automobile industry is playing in the global value chain,this paper points out that traditional automobile superpowers are being overtaken by emerging markets and countries;though China’s position in the global automobile industry keeps rising,it is yet to be intimately involved and incorporated into each link of the global value chain.China is now somehow stuck in the middle reaches of the global value chain and is susceptible to being replaced by other countries and regions in the global automobile trade.Under new circumstances,the Chinese automobile industry must step up its transformation from depending on scale and speed to seeking quality and profitability.Not only must China consistently and steadily promote openness within its automobile industry and steadfastly hold on to trade liberalization and economic globalization,but also must deepen its reform to improve the internal institutional environment for the development of its automobile industry.

On the Digital Transformation of the Automobile Manufacturing Industry in the Chengdu-Chongqing Economic Circle:Mechanism of Action and Feasible Paths

With a long industrial chain and a powerful ability to drive other industries,the automobile manufacturing industry has a prominent strategic position in the national economy.In recent years,many countries have put on their agenda the digitalization of the automobile manufacturing industry,leading to an connected,autonomous,shared,and electric(also known as CASE)①development trend in the industry.As one of the six major automobile industry clusters in China,the Chengdu-Chongqing economic circle has achieved initial results in the digital transformation of the automobile manufacturing industry.However,the region is still faced with some constraints,such as insufficient digital infrastructure,relatively slow development of new automobile products,insufficient innovation ability of the automobile industry,and complex digital transformation of small and medium-sized automobile enterprises(automobile SMEs).This paper intends to construct a framework for the mechanism of action of the digital transformation in the automobile manufacturing industry,analyze the effects of the digital transformation of the automobile manufacturing industry in the Chengdu-Chongqing economic circle,and propose feasible paths for the digital transformation of the automobile manufacturing industry in the region by drawing on domestic and international experience in this regard.The specific paths include:(a)Smoothing the“dual-core”data chain to facilitate the digital transformation of the automobile manufacturing industry;(b)Developing the new energy vehicle(NEV)industry to upgrade the quality of automobile products;(c)Achieving corner overtaking in the digital transformation of the automobile manufacturing industry with digital technology;(d)Jointly building the automobile industrial park to promote the digital transformation of the industry;(e)Addressing problems facing automobile SMEs in digital transformation via targeted policy tools.

CHINA'S AUTOMOBILE INDUSTRY

China’s automobile industrydevelopment can be dividedinto two stages. The first stage(1953-1978)focused on developing the No.1Auto Plant,No.2 Auto Plant and abatch of factories for producingautomobile components to meet theneeds of national economicdevelopment,laying a foundationfor the automobile industry,Becauseof the deficiency of nationalcomprehensive strength and theimplementation of the plannedeconomic management system,automobile products were in shortsupply for a long time. The second stage(1978-1993)witnessed the rapid developmentafter China introduced the reformand opening policy.The annualaverage growth rate of automobileoutput stood at 13 percent,and thatof motors at 40 percent.

The operation status of automobile industry in June 2019

Source: MIIT In June 2019, automobile production and sales continued to decline year-on-year, but the decline was narrower than the prebvious month.1. Car sales in June fell 9.6 percent from a year earlier In June, automobile production and sales reached 1.895 million and 2.056 million, respectively, down 17.3 percent and 9.6 percent year-on-year, respectively.

Performance of the automobile industry in February 2019

According to the statistical analysis of the China Association of Automobile Manufacturers, because of the impact of the Spring Festival holiday, production and sales of the automobiles showed a relatively fast month-on-month decline, and the decline of passenger cars was more obvious in February 2019.

Economic performance of the automobile industry in September 2019

China totally exported 3,570.9 tons of rare earths in September 2019 According to Chinese customs data, China exported 3,570.9 tons of rare earths in September 2019, down 17.96% than the previous month;China totally exported 36,398 tons of rare earths during January ~ September period, down 9% year-on-year.

Agile Opportunities in the Chinese Automobile Market and Marketing Recommendations for Chinese Automakers

This paper is based on a study of the Chinese automobile market and industry and aims at proposing marketing recommendations for Chinese automakers. We approach the problem by putting the customer at the central focal point of all marketing operations. We look for agile opportunities in the Chinese automobile industry and identify customers＇ needs and expectations in the current and future markets and propose solutions to satisfy those needs. We, then, develop a strategic marketing framework based on the 5P marketing model and Blue Ocean Strategy to make best use of the agile opportunities.

China's automobile manufacturing sector logs steady growth in H1

China's automobile manufacturing industry registered steady expansion in terms of production,revenue,and profit in the first half of this year(H1),industry data shows.

Historical Development in the Automotive Industries of Argentina and Turkey

It is possible to say that the automotive industries of Argentina,Brazil,and Turkey are each developed as an assembly industry and show great similarities to each other in this context.Since the 1980s,the development direction of the world automotive industry has been trying to make the country’s investment environment attractive for foreign international companies to produce in their countries in all three countries.However,with the 1980s,their adaptation to the flexible production system and other new technologies being implemented in the Japanese automotive industry took time,meaning that the learning time took a long time,and local contribution rates fell.This has made the slow development mechanism that has been going on since the past work even slower,and they have suffered the punishment for not being able to develop technologies in all three countries by falling behind in the automotive industry.In the 2000s,with technological advances in electric vehicles,when the use of electric vehicles began to become widespread,we can say that all three countries began to experience a new adaptation problem in the automotive industry more severely.In Turkey,this problem was experienced with all its weight along with the other country;in 2006,the policy of attracting foreign investment to the automotive industry was partially abandoned and the approach to producing domestic cars began to be considered,and in 2011,a decision was made to produce domestic cars.As of December 2019,a prototype of the domestic car has been produced by the automobile initiative group of Turkey and work has started for mass production.Thus,the problem of adaptation to the production of electric vehicles was desired to be overcome by moving to a new stage in the path of technology development.The South Korean automotive industry used this approach in the 1980s and was successful and soon gained the ability to develop technology.In order to see the success of the application of this method in Turkey,it is thought that it is necessary to wait for the result of the domestic car project.

Historical Development in Brazil and Turkish Automotive Industry

It is possible to say that the automotive industries of Brazil and Turkey have developed as assembly industries and showed great similarities in this context.In the 1980s,in line with the development direction of the world’s automotive industry,Turkey tried to make the country’s investment environment attractive for foreign international companies to produce in their country.We can say that while Brazil created the state incentive system in order to attract foreign investments to its country since the 1950s,it tried to increase its dose with the 1990s.Although,like Turkey,Brazil has thought of producing local cars,the difference between Turkey and Brazil is that it has considered exporting and was able to export not only to South America,but also to African countries.Another difference of Brazil is that it has implemented incentive policies for the automotive sector and has been able to rearrange its incentive elements according to changing conditions.Turkey,on the other hand,has decided to return from the policy of attracting foreign investments to its country since 2006,and in 2011,it was decided to produce domestic automobiles.As of December 2019,a prototype of the domestic car was produced by Turkey’s Automobile Initiative Group and work for mass production began.Thus,the problem of adaptation to electric vehicle production was tried to be overcome by moving to a new phase in the way of technology development.This approach was used by the South Korean automotive industry in the 1980s and it was successful and technology development capability was gained in a short time.In order to see the success of the application of this method in Turkey,it is thought that it is necessary to wait for the result of the domestic automobile project.Brazil,on the other hand,was able to rank high in world automotive industry production with its sectoral incentive policies that can adapt to changing conditions and its structure that considers exports from the past,while Turkey lagged behind.

RESEARCH ON MODEL AND METHOD OF NETWORK-BASED COOPERATIVE COMMERCE CHAIN IN AUTOMOBOLE INDUSTRY

Based on the analysis on the development of the cooperative commerce inautomobile industry, the systematic model of the cooperative commerce chain in automobile industryis illustrated, the flow of agent-based NCCC (network-based cooperative commerce chain) system isdescribed, and the method and NCCC system in automobile industry are developed, and so thecorrectness and the feasibility of the theory and the method are confirmed.