Since 2003, many private enterprises have been attracted by the automobile industry, which contains huge profits. BYD, Delong, Midea, Oaks, Bird, Lifan and other enterprises have entered the auto industry through backdoors. Private companies competing for a single-plank bridge and squeezing into the ranks of automakers are the most influential events in the Chinese auto industry. They also attracted the attention of many insiders and ordinary people. However, with the passage of time, these out-door builders are not shocked at all. Privately-owned vehicle makers have been submerged in numerous joint-ventures and various price cuts. Just at the Beijing Auto Show in June, several so-called concept cars brought some bright colors to the private car makers, but they went down. Obviously, this year's auto market slumped some of the private enterprises' plan to enter the market, and the frenzy of price cuts also shattered some of the profit dreams of private car makers. Some private enterprises have already started to recuperate. Taken together, the current private enterprise of car makers is an erratic group. In September this year, the waveguide company that decided to co-produce cars with SAIC at the end of last year has already decided to withdraw its capital from NAC and become the first domestic non-industry enterprise to formally withdraw from the automobile production sector. There are many reasons for the divestment by the insider of Waveguide Technology. Although it lost more than 10 million yuan during the divestment, Bird will not withdraw from the auto industry. The source said that the current Bird Electronics Research Institute in Shanghai is still developing new models, and Bird will re-enter the auto industry through other means. Although Bird did not say "withdraw", the possibility of re-entry into the automotive industry is quite small. Because the new automobile industry policy stipulates that no 2 billion people cannot enter the door of the automobile industry; in addition, the new policy also stipulates that automobile manufacturers cannot buy or sell production licenses, thus blocking the way to “buy shells†into the auto industry. In any case, Bird's withdrawal of capital from Nanjing Automobile has been a wake-up call to other companies entering or about to enter the construction industry. Although it is not yet known whether many privately-owned private companies will follow Wave's "divestment action," it is certain that large-scale phase-out has only just begun in the continued downturn of the entire auto market. Private companies that have invested large sums of money in the automotive industry naturally cannot easily retreat. Although profit expectations have been greatly reduced, because that era of profiteering will never come back, but compared to these heroes who have survived for many years in a fully competitive industry such as household appliances. For their part, the auto industry is still a fat and oily one. Low-price strategies Compared to mainstream auto companies that have benefited from national policies for many years, these private-owned enterprises have no advantages in terms of capital, technology or brand. They want to be in the capital-intensive and technology-intensive industries of automobiles. It's hard to imagine how difficult it is to get a share. Although the private car makers have tried their best to give their products a beautiful name and logo, add configuration and even coat colorful colors, these authentic “local products†are still in the hearts of consumers with “poor quality, low technology, and insecurityâ€. Concept catch up with relationship. The lack of brand appeal is their weakness in the market. For the mixed-race children of mainstream companies and foreign capital, the advantage of private enterprises is that the only advantage is low prices. Oaks, who is an air-conditioner, is naturally familiar and experienced in this area. In April of last year, Oaks released an atomic bomb that shakes the industry in the air-conditioning industry. At one meeting, Oaks showed off a white paper on the cost of air-conditioning. The "book" not only shows the bottom price of air-conditioning manufacturing costs, but also makes the profits that manufacturers and merchants can make clear. A KFR-32GW / AL 1.5 horsepower air conditioner market price is 1880 yuan, of which the production cost is 1370 yuan, the sales cost is 370 yuan, to sell a such air conditioner, businesses can earn 88 yuan, manufacturers can earn 52 yuan . For more high-end air-conditioning, businesses and manufacturers earn more. Oaks executives once said that Oaks is not greedy when it comes to the automotive industry. It just wants to pursue a reasonable profit in the automotive industry. It can satisfy their profit demands by intensively exploring and operating the industry. People in the industry believe that once Oaks replicates the small profits of the air-conditioning industry into the automotive industry, it will have a great shock to the automotive industry. It is reported that Oaks will launch two mid- to high-end cars in June next year, one for the 2.0-liter displacement, the other for the 2.4-liter displacement, pricing will be between 120,000 to 150,000 yuan. The next year's two cars are still small choppers, allegedly Oaks plans to invest 8 billion yuan to launch 8 positioning of high-end cars. Low-cost control capabilities to support the low-price strategy of private enterprises are the low-cost control capabilities of private enterprises. It has been reported that prototype cars of Lifan cars have already gone offline and are currently being tested in Shanghai. The new car is expected to be listed in the first half of next year, the price is about 80,000 yuan. Yin Mingshan, chairman of Chongqing Lifan, once stated that Lifan owns the full set of intellectual property rights of the car. The development of Lifan cars mainly uses the means of joint development and purchase of technology. According to reports, the Lifan sedan is designed and developed by Shanghai Tongji Tongjie. At least three senior professional companies with the technical background of the three North American auto companies provide technical support for Lifan Mold. The car production line is built by Lifan Auto. At present, the domestic joint venture plants are mainly imported from abroad, and the technology transfer fee for a new model, plus equipment, molds, etc., requires about 100 billion yuan. Yin Mingshan told reporters that Lifan’s development costs, together with mold and other technical equipment, only cost a total of 200 million yuan. As BYD Chairman Wang Chuanfu said, low-cost control capability is fundamental to the survival of private enterprises. Wang Chuanfu even remarked: Many state-owned enterprises, if let BYD such private enterprise to manage, the cost reduces by at least 40%. The reporter recently learned from BYD Auto that F2 and F6 will be listed at the end of this year at the Beijing International Auto Show. The time for the two cars to go offline is similar. BYD F6 is a C-class vehicle with a displacement of 2.4 liters. The specific pricing will be between 110,000 and 150,000 yuan. The F2 is an economical sedan with a displacement of 1.3 liters. Difficulties are different from other privately owned companies in the technical disadvantages. BYD, a mobile phone battery manufacturer, owns the core technology of batteries and has technical advantages in the development of large-capacity lithium-ion batteries. Wang Chuanfu firmly believes that lithium-ion batteries are the future direction of development of electric vehicles, so he decided to enter the automotive industry. However, its claimed lithium-ion pure electric vehicles that were put into operation in Shenzhen this year did not appear. It was reported that the key technologies were not closed, and there was news that the lithium-ion pure electric vehicles were not on the list and could not be licensed. In fact, private enterprises face not only financial and technical difficulties, but also face policy restrictions. Yin Mingshan once said that private companies cannot enter this field when the auto profits are high. Only when the profits are no longer the case, can private enterprises rely on the advantages of management, cost, and flexibility. What is worrying, however, is that when the low-cost strategy of private enterprises poses a threat to several mainstream companies, some mainstream companies are also likely to influence relevant policies to restrict the development of private enterprises. Judging from the current market performance of BYD, Lifan and Oaks, it is now more like the treacherous force before the launch. All indications are that after Geely, the second round of private companies will soon start the assault on the auto market. This time the battle was even fiercer and more cruel.
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