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When will the international auto giants fully enter China? It has only just begun. Last week, Volkswagen FAW Group Co., Ltd. established a joint venture between Changchun Volkswagen and FAW Group in Changchun to supply products for the PQ35 platform for FAW-Volkswagen and Shanghai Volkswagen. At the same time, Honda invested $8.18 million to establish a new company in Guangzhou to provide production support, metal molds, etc. for the launch of new models at the domestic Honda production base. In addition, VW and FAW's joint venture engine plant will also begin construction. The establishment of auxiliary companies for these automakers means that the domestic joint venture plants are transitioning from simple assembly plants to comprehensive auto companies. Some key components have also started to be produced domestically. Together with GM, Volkswagen and other financial companies accelerating their establishment in China, these foreign capitals are entering the domestic market from the upstream parts production to the vehicle processing, and then to the downstream sales credit. It is reasonable to set up parts and components manufacturing plants in the country and Volkswagen. This aspect can increase the localization rate, on the other hand, it can also reduce procurement costs. The key point is that the new "Automotive Industry Development Policy" puts higher requirements on the localization rate, which makes foreigners have to purchase parts locally. It is worth noting that in the newly established parts and components companies, foreign investors have a controlling interest. Such as the newly established "Volkswagen FAW platform parts company", the public accounted for 60% of the shares. This means that in the future, foreign capital will also have absolute control over the spare parts sector. Volkswagen is busy building parts companies for reasons. In the first half of the year, Volkswagen produced a total of 306,000 vehicles in China, while GM produced 259,000 vehicles (including SAIC-GM-Wuling), and the gap is getting smaller and smaller. Not only does foreign capital work hard, FAW, SAIC, etc. also secretly compete. Last week, data from the Automobile Industry Association showed that in the first half of this year, SAIC had already surpassed FAW and became the largest auto group in China. What is more surprising is that Dongfeng Motor actually fell from No. 3 to No. 5 all the way, behind the Changan Group and Beijing Automotive Holdings. Hainan Mazda and Shanghai GM are also fighting for market share. Last week, the news came from the distributors. The company lowered its price by 6600-8800 yuan, while the Excelle also lowered 9,500 yuan, while the M6 ​​also promoted 12,000 yuan. Price cuts are naturally good news for those who want to buy a car, but the figures from the Ministry of Transport are a bit sad. It is reported that in the first half of the year, nearly 50,000 people died in traffic accidents in the country, an increase of 2.4% from the same period last year. It seems that implementing the new "Traffic Law" and increasing penalties for driver violations are still necessary. The temporary relocation of Laoya City is a topic for several happy families. On Saturday, the city of Asia suddenly announced that it would not move again. This is not a good news for the operators of other automobile cities such as Dongfang Foundation and Oudebao.
International giants deploy Chinese cars to begin full competition
When will the international auto giants fully enter China? It has only just begun. Last week, Volkswagen FAW Group Co., Ltd. established a joint venture between Changchun Volkswagen and FAW Group in Changchun to supply products for the PQ35 platform for FAW-Volkswagen and Shanghai Volkswagen. At the same time, Honda invested $8.18 million to establish a new company in Guangzhou to provide production support, metal molds, etc. for the launch of new models at the domestic Honda production base. In addition, VW and FAW's joint venture engine plant will also begin construction. The establishment of auxiliary companies for these automakers means that the domestic joint venture plants are transitioning from simple assembly plants to comprehensive auto companies. Some key components have also started to be produced domestically. Together with GM, Volkswagen and other financial companies accelerating their establishment in China, these foreign capitals are entering the domestic market from the upstream parts production to the vehicle processing, and then to the downstream sales credit. It is reasonable to set up parts and components manufacturing plants in the country and Volkswagen. This aspect can increase the localization rate, on the other hand, it can also reduce procurement costs. The key point is that the new "Automotive Industry Development Policy" puts higher requirements on the localization rate, which makes foreigners have to purchase parts locally. It is worth noting that in the newly established parts and components companies, foreign investors have a controlling interest. Such as the newly established "Volkswagen FAW platform parts company", the public accounted for 60% of the shares. This means that in the future, foreign capital will also have absolute control over the spare parts sector. Volkswagen is busy building parts companies for reasons. In the first half of the year, Volkswagen produced a total of 306,000 vehicles in China, while GM produced 259,000 vehicles (including SAIC-GM-Wuling), and the gap is getting smaller and smaller. Not only does foreign capital work hard, FAW, SAIC, etc. also secretly compete. Last week, data from the Automobile Industry Association showed that in the first half of this year, SAIC had already surpassed FAW and became the largest auto group in China. What is more surprising is that Dongfeng Motor actually fell from No. 3 to No. 5 all the way, behind the Changan Group and Beijing Automotive Holdings. Hainan Mazda and Shanghai GM are also fighting for market share. Last week, the news came from the distributors. The company lowered its price by 6600-8800 yuan, while the Excelle also lowered 9,500 yuan, while the M6 ​​also promoted 12,000 yuan. Price cuts are naturally good news for those who want to buy a car, but the figures from the Ministry of Transport are a bit sad. It is reported that in the first half of the year, nearly 50,000 people died in traffic accidents in the country, an increase of 2.4% from the same period last year. It seems that implementing the new "Traffic Law" and increasing penalties for driver violations are still necessary. The temporary relocation of Laoya City is a topic for several happy families. On Saturday, the city of Asia suddenly announced that it would not move again. This is not a good news for the operators of other automobile cities such as Dongfang Foundation and Oudebao.