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“Although our R&D investment is not as large as that of foreign countries, from the perspective of the company’s vertical development, the R&D investment of Chinese auto companies has greatly increased.â€
In 2008, the consulting firm of the automotive industry, Aowei Consulting, issued a survey that China’s auto industry’s R&D resources and inputs are insufficient. In their view, although China's auto industry R&D spending has increased at a rate of 40% per year in recent years, it still has a large gap compared with foreign counterparts.
The survey showed that in 2008, Honda’s investment in design and R&D continued to stay ahead. The total investment in R&D expenses reached US$5.6 billion, and the proportion of R&D expenses to sales revenue reached 5.6%. In the statistical ranking of R&D expenses, the number of automakers and parts and components companies accounted for 8%. At the same time, the research and development level and funding of Chinese auto companies need to be improved.
In this regard, some experts believe that the problems in the development of government autonomy, development, investment in the government, scientific and technological development system, scientific research organization system, and related industrial technology have hindered the formation of the auto industry’s ability to independently develop, and have affected the development of independent development capabilities. The enthusiasm has contributed to the company’s eagerness for quick success and short-term behavior.
“Some companies are only interested in the immediate future, keen to constantly introduce foreign products and technologies, satisfy themselves in enjoying the property rights of imported products, neglect their mastery of technology and enhance their competitiveness. Companies are reluctant to invest in basic technology research and all-round independent development capacity building. With more manpower, financial resources and material resources, the joint venture will listen to foreign decision-making in the upgrading of its products. In the long run, the development of China’s auto industry will be in a very passive situation,†an auto expert told reporters.
"R&D requires a lot of money, talent, and investment. It takes time. The state-owned company executives have been working hard for two years to produce results. Perhaps two years later, they will not be in power." Car analyst Luo Jinling told reporters that at present, The R&D in some joint ventures does not have the real core technology and is suspected of being a show. Instead, private companies are investing heavily in research and development. “It is imperative to make effective use of the soil of local companies as a carrier for the development of technological capabilities and gradually form a basic database of independent intellectual property rights. This is a very important basic task and the key to the formation of independent development capabilities.â€
“The other major reason for the weak independent innovation capability of China’s auto manufacturers is that companies are focusing on product introduction and light product technology digestion and absorption. In China, the average cost of digestion and absorption after the introduction of advanced technology by enterprises is less than 7% of the introduction of project costs. In Korea, Japan and other countries, the cost is 3 to 10 times of the cost of introducing the project, forming a healthy development of 'introduction-absorption-prototyping-independent innovation'.†Industry experts said that in addition, Chinese car companies are still in research and development There is a phenomenon in which innovation runs counter to the true will of consumers. “Automakers and suppliers don’t always understand the ultimate needs and wishes of consumers. Car buyers are overwhelmed by a large number of complex innovations and specific brand names and abbreviations. On average, it’s actually only one-sixth. The innovative technologies are being sold out. Therefore, car manufacturers must constantly inspect their own innovative project portfolios and focus on innovative features that are likely to be accepted by consumers."
Compared with vehicle companies with weak R&D capabilities, China’s auto parts companies’ R&D capabilities are also weak.
A large amount of information shows that in developed countries, the R&D capability of auto parts companies has been ahead of vehicle companies. In the development of a new car, 70% of the intellectual property rights belong to auto parts enterprises, while the vast majority of parts and components companies in China do not have product development capabilities. Product development mainly relies on the host plant, which is difficult to adapt to the requirements of the entire vehicle replacement.
Dong Jianping, deputy secretary-general of the China Automobile Industry Association, told reporters that in recent years, China's auto parts companies have not given full attention to innovation and have encountered many bottlenecks. For example, when China's commercial vehicles are implementing State III emission standards, they encounter the paralysis of diesel common rail technology. “Our diesel engines are mainly piston type high-pressure oil pumps. To meet the national III standard, it is impossible to use traditional technologies, so we must achieve a leap from mechanical to electronic control technology. If we do not make innovations, we will not be able to break through. Eliminated."
In 2008, when China’s emission regulations were comprehensively known as Fact III, the core of diesel common-rail technology was mastered by auto parts giants such as Bosch, Denso, and Delphi. To realize this standard, the price of the product will inevitably increase by nearly 16,000 yuan. Yuan, forced by the pressure of the market, heavy truck trucks equipped with EGR engines. Although reluctantly realizing the progress of the engine from State II to State III, the suspicions caused by this have come to an end. Due to the inadequacy of the overall strength of China's automotive technology and the pressure from various companies, the State Environmental Protection Administration eventually made concessions on EGR engines.
“The sales price of a high pressure common rail system of Bosch is only 500-600 euros in foreign countries, while the sales price in China is nearly 1,500 euros, and the profit is very high.†Industry sources said that Bosch has established Bosch Automotive Diesel in the country. System Co., Ltd. mainly produces high pressure common rail systems. If national IV emission standards are fully implemented across the country, the company’s revenue and profits will increase rapidly as snowballs.
At the same time, most components of Bosch's high-pressure common rail system need to be imported from abroad. Many of the import companies of these components are Bosch subsidiaries, and huge profits have been transferred overseas. This is not only for China losing huge amounts of foreign exchange but also reducing huge taxes.
Industry sources believe that the root causes of similar incidents are: First, the lack of foreign investment in parts and components of joint ventures in the automobile industry development policy; Second, due to the Chinese in key components such as powertrains, transmissions, axle companies Low profits, low R&D expenses, lack of technical talents, lack of experience in developing new models, lack of databases, lack of core matching experience and data, and third, foreign companies not only profit from vehicles, but also import matching parts and technology transfer fees. It also gained a lot of profits, so it also has a high investment in research and development. For example, Yuchai's new diesel engine must be helped by German FEV company; Hangfa Development country III machine is assisted by Ricardo, Denso, and TNO testing center in Holland; FAW Xichai develops Aowei diesel engine by AVL company. All these require Chinese companies to pay for it.
“A lot of foreign companies have set up wholly-owned technology centers in China. In these places, we don’t have the core technology, only some applied technologies. If we don’t increase the investment in technology and engage in independent innovation, we will Marginalization is not only marginalized in production, but also more marginal in terms of technology and technology research and development.†Dong Jianping believes that in China, the era of technology purchase has passed. The key to China’s auto parts industry becoming bigger and stronger is to increase technology. Engage in independent innovation.
Under the premise of forming a consensus with the industry, the relevant authorities of the country have realized the problem of insufficient investment in R&D.
In March 2010, the Ministry of Industry and Information Technology issued the "Guidance Opinion on Strengthening the Quality Construction of Automobile Products and Promoting the Healthy Development of the Automotive Industry". The opinion pointed out that automobile manufacturers must increase technical upgrading and new technology research and development, strengthen information construction, and use information technology to improve product quality.
According to the opinion, China has become a world leader in automobile production and consumption. At the same time, it should also be noted that China’s auto industry still suffers from the problems of lack of core technologies, weak independent innovation capabilities, and imperfect management levels. Some companies have problems such as heavy capacity expansion, light technology research and development, heavy cost control, and light quality management. It even brings hidden dangers to consumers and social public safety. Therefore, automobile manufacturers should actively adopt new technologies, new processes, new equipment, and new materials, constantly improve the variety, improve quality, and prevent blindly expanding production capacity. To improve the detection capabilities of automotive products and key components, combined with the transformation of the production line, increase the online testing equipment.
Fortunately, some car companies have stepped up their efforts in R&D.
On April 17, Chang'an Automobile Jiangxi Research Institute was officially put into operation; two days later, the same scene was staged in Harbin on May 12 and the Harbin Institute of Chang'an Automobile was officially put into operation. At this point, Changan's R&D system of “Three Kingdoms and Seven Lands†entered a substantive operational stage. In addition, independent brands, Chery, Geely, Great Wall and other independent brand companies have established their own technology research and development centers. "In fact, China's R & D personnel are not inferior to foreign countries in quality and knowledge, but they lack experience in product development. Therefore, this road will be very long, not a matter of one day." General Secretary of the National Association of Passenger Cars Rao Da think.
“Although our R&D investment is not as large as foreign ones, from the perspective of the company itself, the R&D investment of Chinese auto companies has greatly increased.†Sun Shaojun, executive president of Weichai Power, said that even in tight funding conditions Next, companies are also investing a lot of money in product development.
“In 1998, Weichai had only eight simple test benches. Now, its test benches have been increased to 28, which is at the domestic advanced level. At present, Weichai has accumulated more than 500 million yuan in hardware for R&D.†Sun Shaojun It stated that Weichai is building a new R&D center with a total investment of up to 1 billion yuan. In addition to increasing hardware, the number and quality of Weichai R&D personnel are also constantly improving. Through training and introduction, Weichai currently has a relatively reasonable research and development echelon. The number of R&D personnel has increased from 20 people 10 years ago to 200 now, of which more than 150 have a master's degree or above. In addition, after years of accumulation, Weichai has initially established a complete set of product R&D systems, and established standards for conceptual design, detailed design, mechanical development, complete machine development, and complete vehicle matching. At the same time, the introduction of CAE into the R&D process has shortened the R&D time and reduced the R&D costs. Sun Shaojun revealed that at present, Weichai’s R&D investment will not only decrease but will continue to increase.
In fact, not only is the Weichai family aware of the importance of R&D, but other automotive OEMs and parts companies are also actively increasing their R&D efforts.
Gao Youfan, general manager of Hunan Foday Auto's Hunan Corporation, told reporters that due to the healthy development after the reorganization of corporate assets in 2001, Fodi will invest Rmb500 million in R&D investment, and all funds will come from the company’s own funds.
It is rumored that Wang Feng, the general manager of Shandong Linglong Group, had changed Audi's seat to a Land Rover that had been custom-built from abroad for safety due to an accident several years ago in hopes of safer driving. In the face of the United States in 2009 the special tire for China's tire tariff increase, the general manager of China's third largest tire company determined to increase its determination to technology research and development, brand building and marketing model changes.
Exquisite group of people told reporters that although the quality of domestic and foreign investment is similar, but foreign tire companies, it will create a marketing concept, technology research and development, foreign high-end tires also early in China for several years. In addition, foreign companies already have electronic pre-vulcanization technology. This technology can make the metal wire in the tire less deformable and ensure the safety of the tire. In this regard, Chinese tire companies, including exquisite tires, are mostly in the R&D stage and have not yet been used in production. "This technology and run-flat tire technology, Delicate has invested nearly 300 million yuan in research and development to fight with foreign companies."
“Technically, foreign-funded enterprises are always mastered first, and domestic companies will master the development over a period of time. Conceptually, foreign-funded enterprises are often put forward first. Chinese companies then follow schools and always follow.†Delegates told us Reporter, at present, China's auto companies have realized this problem, and the management of Delicate Group also stated that in order to respond to special insurance and consider the long-term development of the company, Exquisite will step up research and development of technology, change marketing model and increase brand building. In order to achieve a 10% increase in the added value of some products.
Not long ago, Shanghai Automotive announced that Shanghai Automotive and its controlling shareholder, Shanghai Automotive Industry Corporation (Group), will invest RMB 2 billion in the future to establish Shanghai Jieneng Automotive Technology Co., Ltd. (hereinafter referred to as “Jetengâ€) to develop oil and electricity. And pure electric drive technology. Hu Maoyuan, chairman of SAIC, stated that SAIC will increase investment in R&D of new energy vehicle technologies in the future and will use this as a key point for enhancing independent innovation capabilities.
At present, most of the domestic large-scale automobile companies sell products that cooperate with overseas brands. The proportion of self-owned brands is not high, and SAIC, FAW, Dongfeng and Guangzhou Automobile are planning to introduce their own brands this year. The proportion increased to 20% to 50%. To achieve this goal, we must achieve independent research and development and have a core set of technologies.
Persons with exquisite tires believe that the backwardness will be beaten. For a long time, due to factors such as weak influence of its brand, low level of technology research and development, and unreasonable marketing model, Chinese manufacturers have frequently encountered trade barriers in their march to the international market. The United States tire special security case, China National Heavy Duty Truck EGR turmoil, has explained a problem that China's auto parts and components companies lack of investment, independent research and development strength is not strong. At this time, China's auto manufacturing industry is also worthy of our reflection on the development model of seeking quantity without quality. Low-level redundant construction has triggered the disorderly competition in the domestic market and the low-end market in the international market. To be fair, China's auto products are basically not competitive in the international market. It is entirely relying on low-cost to expand the market. Once the low-cost advantages are lost or technical barriers to higher thresholds are introduced, the consequences will be very serious. China's auto manufacturing industry must reflect on this and put the optimization of products and industrial structure on the agenda as soon as possible.
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