The Unbearable Weight of Chinese Automobile Industry

After more than ten years of explosive growth, the Chinese auto industry may have entered the most severe period in more than ten years. The continued decline in April and May 2011 is only a big adjustment of the future, and it will soon break the ten. The inexorable status of oil prices, unsustainable urban conditions and hard-to-find parking lots are the deep-seated problems that affect the development of the auto industry. The Chinese auto industry has begun to encounter real unbearable burdens.

In fact, the Chinese auto market has encountered more than one market adjustment in the past decade. However, whether it was the first storm in 2004 or the financial crisis in 2008, the impact on the Chinese auto market was not deep this year. The most essential difference is that the automobile market adjustments in 2004 and 2008 were caused by macroeconomic adjustments, and the auto industry’s own development space has not encountered a “ceiling”. At the time of macroeconomic adjustment, the auto industry became a One of the “carriage” that the country has driven the macro economy out of the predicament. The current adjustment of the auto industry is a direct result of the unbearable social resources of the auto industry after the brutal growth of the auto market. It is difficult to imagine the balance of the policy when the car’s brutal growth has pushed energy, transportation, and the environment into a cliff. Go to the auto market side.

Right now, we have introspected our previous years’ car support policies and called for the withdrawal of incentive policies from the auto market to become the consensus of more and more people. However, I feel that just as the “carrying out and fuelling” automobile encouragement policy has caused incalculable damage to the macroeconomic operating environment, the pressure and restrictions on the auto market that are rushing everywhere are similarly affecting the Chinese automobile industry and even the macro economy. The operation will result in incalculable losses. Lao Tzu said: “If a big country is to be simmered by small fresh vegetables.” Minimizing interference with the market and defining the boundaries between the government and the market is the best way for us to correctly treat the Chinese auto market. How can the automotive industry become a world powerhouse in the past few years?

From 1996 to 2011, the achievements of the Chinese auto market in the past fifteen years are obvious to all. The driving force for the operation of the macro economy is even more meritorious. Although China’s auto industry is not even strong, “big” has become a reality in the environment and energy. When we encounter bottlenecks in traffic, it is wise for us to cancel the car incentives policy. However, the use of measures and policies to suppress the auto market is an erroneous decision that is overkill. Why can we not give the market a little free space? Allow companies, car owners, and consumers to vote in their own way?