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China needs to update promotion strategy for auto export

  • Source: CE.cn
  • [09:38 March 01 2010]
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Meanwhile, what shall be recognized further is that under the status quo, it's urgent to change the development mode of exporting auto products.

The rapid growth on export that has kept for several successive years indicates that China's autos are demanded greatly in the international market and have obvious comparative advantage, however, the export manner is extensive and has not yet formed direct competition with internationally famous entire auto enterprises and therefore, such a manner is only the internationalization of domestic competition to a large extent.

The competition stress is mainly sourced from the interior, many deep-rooted problems have been revealed, and the foundation of China's auto export is not firm.

For example, the low-level homogeneous competition mainly relies on price without paying attention to the quality, before-sale service, after service and the construction of marketing network, additionally, the brand and credit are also insufficient; enterprises are weak on strategic planning for export markets, taking orders as the market, and even some of them take the market as a trial place, representing serious short-term behaviors.

To realize persistent growth on auto export, what must be done is to change such an extensive export manner increasingly, rebuild the foundation of export, and boost the transformation of export enterprises from workshop or factory type to marketing type.

Zhang Ji expressed that under the circumstance of extensive export operation, some enterprises have very small export volume that they have not to invest more on after service and product development, so the price of their products are very cheap; but for good enterprises, because they have investment on developing products, provide after service and conduct network construction and brand cultivation, the cost of their products is bound to be lifted.

Therefore, against such a background, such a phenomenon will emerge, that is, it's difficult for small enterprises to become big and for big enterprises to become strong. Due to the generally insufficient brand recognition, as long as there is a problem exposed to a product, the problem will influence the overall honor of China's auto industry and Made-in-China products.

Therefore, in the end of 2006, the MOFCOM gathered with related departments and issued measures on regulating the order of auto export, and the effect was remarkable.

Currently, the number of main operating bodies of China's auto export has decreased from 1400-odd to 700-odd, the unit price of exported autos has been increased greatly and the profits of enterprises have been improved remarkably. 

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