How can the car market stall the value of China's auto brands?

How can the car market stall the value of China's auto brands?


In the past decade or so, Chinese brand cars have achieved rapid development, but they still have a large gap compared with foreign brands that have strong competitiveness.

According to data from the China Automobile Association, the sales volume of China's automobile market for 2015 was 24,598,000 units, which was a year-on-year increase of 4.7%, which was 2.18 percentage points lower than the same period of last year. This means that since 2015, the Chinese auto industry has gradually shifted from high-speed overall growth to low-speed growth, and it is difficult to replicate the past glory in the future.

With the downward pressure on the macro-environment, the new round of competition in the Chinese auto market has intensified. With the dropping prices of foreign branded cars, the pressure on Chinese brands has been increasing.


Is there still a chance for Chinese brands?

The automotive industry needs change. Some brands and companies that are unable to keep up with the pace of this transformation are destined to be eliminated in the fierce market competition. However, in this round of automotive industry changes, Chinese brands are not without opportunities.

In the field of passenger vehicles, independent brands represented by Geely, Great Wall, and Changan Automobile are picking up the banner of Chinese brands. Similarly, in the field of commercial vehicles, car companies represented by Yutong Bus and Foton Motor are constantly Change the image made in China.

The performance of Foton Motor is particularly garish. Futian Automobile Co., Ltd. was established in 1996. From FY11.132 billion in 2005, Foton Motor used 12 years to increase the brand value to 100.565 billion yuan in 2016. This growth rate is in the automotive industry. Not much to see.

Since 2011, China's commercial vehicle market has been declining for five consecutive years, especially in the field of heavy trucks for several consecutive years of "winter."

“In recent years, especially since 2015, China’s commercial vehicle industry has faced unprecedented difficulties. The market continues to decline, the task of structural adjustment is arduous, and export unfavorable factors increase, which makes the entire industry face enormous challenges.” China Council for the Promotion of International Trade Motors Industry club president Wang Xia said.

Even under such a bad background, the brand value of Foton Motor has still been greatly improved.

On June 22nd, World Brand Lab released the 2016 (Thirteenth) "China's 500 Most Valuable Brands" ranking in Beijing. Foton Motor ranked 34th in terms of RMB 100.565 billion, ranking the automotive industry. 4th place, leading the field of commercial vehicles for 12 consecutive years. Compared with the total value of the Foton Motor brand in 2015 was 80.936 billion yuan, the brand value of Foton Motor in 2016 increased by 24.25%.

Why can Foton continue to develop rapidly under the continuous cold weather environment in the commercial automotive industry? What are the reasons for the continuous growth of the brand value of Foton Motor?

Foton Motor and change in the strategic transformation
<br> <br> with the Chinese auto market has become the world's largest market, China's consumers have more choices. Consumers not only pay attention to the categories of automotive products, but also pay more attention to the quality and added value of products.

James Morse, a well-known management consultant, said that "the only advantage of sustainable competition comes from the ability to outperform competitors' innovation." There is no doubt that innovation is the most effective and the only way for companies to grow bigger and stronger.

The "13th Five-Year Plan", "Made in China 2025", and "Industry 4.0" systems put forward higher requirements for the transformation and development of the commercial vehicle industry. Simply carrying out vehicle R&D and upgrades can no longer meet the needs of the government and end-users for commercial vehicle products. Demand and supply of products that meet the needs of the new era and cover systematic solutions will surely be the mainstream of the commercial vehicle industry in the future.

Facing the changes in the market, Foton Motor adopted a strategy of “changing its own initiative” to carry out a strategic transformation. As early as 2012, Foton Motor proposed the “2020 Strategy” target.

Judging from the performance in recent years, the strategic transformation of Foton Motor has achieved initial success.

How to make Chinese brands go to high-end market?


For a long time, in the Chinese market, foreign brands hold high-end markets, while Chinese local brands are concentrated in low-end markets. How to stand out in the fierce market competition, this is a major issue for all Chinese brand car companies.

After gradually gaining recognition from the Chinese market, Foton Motor began to plan a step forward a few years ago: to enter the high-end market and go abroad.

Bringing together global resources, building world-class products, and going abroad, is an important step in the development of Foton Motor, and it is also the key to Futian's enhancement of brand competitiveness and to becoming a world-class brand.

It is worth mentioning that on June 22, 2016, the "China's Internet Super Truck Global Innovation Alliance Established and Beijing Foton Auman EST Super Truck Launching Ceremony" was launched in Beijing under the theme of the "Fashion Belt and Road Initiative" driven by the Beijing Foton Internet Super Truck. Held in Athens.

Foton Motors inaugurates a global innovation alliance established by world-famous companies such as ZF, Cummins, COSCO Logistics, CEVA Logistics, Foglia, WABCO, Continental Electronics, Rheinland and Baidu, which means that Foton Motors actively drives global innovation resources and The combination of elements of the configuration, explore the global open sharing innovation model, and firmly implement the "innovation and development drive strategy" and take a solid step.

At the same time, in order to enhance the competitiveness of the brand, it has entered the markets of developed countries, with “2” operation centers centered on the China Commercial Vehicle Operation Center and the German Passenger Vehicle Operation Center; and “3” developed countries in the European Union, Japan and South Korea, and North America. In order to achieve market breakthroughs in the region, Futian Auto's overseas strategy of “2+3+N”, which has realized industrialization markets in “N” key countries and regions such as India, Russia, Brazil, Indonesia, Mexico, and Vietnam, has been fully implemented.

Standing at the new starting point of the 20-year-old and facing the future, Foton Motor has already set off again. This auto company with a brand value of more than 100 billion yuan is for China's self-owned brand auto companies to develop a path from big to strong and from China to the world.

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