Promoting Automobile Exports Still Needs In-Depth of Internationalization of Car Enterprises


The continued decline in Chinese auto exports has caused widespread concern in the industry. Wei Luxun, deputy director of the Department of Mechanical and Electrical Industry of the Ministry of Commerce, believes that China's auto output is about 5% for export, but compared with traditional car manufacturing countries, Chinese auto exports are only the tip of the iceberg. In terms of export value, China’s auto exports account for only about 1% of the total global auto trade exports, and the situation is not optimistic.

At present, many auto companies in China are talking about internationalization and regard export as a symbol, but what is the real meaning of internationalization? It is estimated that each company's explanation is different.

Automobiles are high value-added, high-tech products. The lack of international competitiveness of China's self-owned brand car enterprises in terms of automotive quality, technology, energy conservation and environmental protection seems to have become a consensus. Moreover, China’s auto exports are far from being internationalized, and some short-sighted moves are likely to create major obstacles for future development.

In fact, from an academic point of view, internationalization requires all aspects of corporate resources including brand, product, talent, management, and research and development, and smooth international deployment. However, many companies now simply regard orders as a market, and do not do preliminary market research. In addition, the homogeneity of China's auto export products is so serious that it blindly fights prices for orders. Many automakers have not adapted their products to the target market, especially for the cold, high-heat, and high-humidity areas, causing a large number of quality complaints.

In fact, internationalization is not only going out but also going in. Today, everyone knows that brands that have developed better in China are mostly successful because of localized production. However, they often ignore the important factor of going out in their own companies.

At present, many countries have begun to restrict the import of cars, including Chinese brands, and encourage foreign car manufacturers to produce locally. This is both an opportunity and a challenge for Chinese auto companies. The restrictive conditions force Chinese export vehicle manufacturers to produce locally overseas, and not only simple CKD assembly but also higher localization rates.

In the face of this passive situation, the internationalization of Chinese auto companies has become an important issue. It is not difficult for those familiar with the development of Chinese auto industry to see that the development of many companies is just catching up with the rapid growth of the Chinese auto market, and its own strength is not strong. Today we need to emphasize services, property rights, and innovation in international competition. If we want to go global, we need to improve our own strength, and we must also have an international system and go deep into the local area to achieve localization. This is exactly what we lack.

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