The motivation of both two phenomenon

　　1. Handle core technology is a mutual choice

Self-owned are trying to get a breakthrough in the core technological areas of engine and gearbox so as to enhance the competitiveness of their vehicles and secure the supply chain.

The multinational corporations are striving for a longer retention time of their core technologies for more profits. If the products of our domestic-funded enterprises reach the level of imported components of multinational corporations, their monopoly position or at least the monopoly profits may be shaken.

　　2. To achieve respective product superiority

As to self-owned brands, to achieve self-produced engines can form more distinctive characteristics of their own models. The technical superiority of their upgraded engines will be gradually built. Through these competitive advantages, their products can be quickly improved.

On the other hand, to these multinational corporations, to control the core components will benefit the maintenance of their products’ comprehensive technological superiority. Currently, the high prices of high-class passenger cars must be supported by the core components. If the vehicle models of self-owned brands and multinational corporations adopt the same components, the high prices of high-class passenger cars will be hard to maintain. The monopoly profits of multinational corporations will be largely impacted.

　　3. pay attention to the policy adjustment

Policy is the direction of enterprises as well as a realistic adjustment of interests. The policy adjustment of China expands the importation of multinational corporations and accelerates the autonomation of self-owned brands.

With no consideration of the localization degree, according to the new policy adjustments, China imposes imported vehicle a tariffs of 25% while the component only 10%.Many multinational companies export a large number of auto parts to China and then finish assembly and sales on the ground, which can avoid tariff of at least 15%.

In the Automobile Industry Revitalization Plan released in 2009, the government proposes some certain supportive policies in upgrading the core technologies of auto parts, especially the promotion of engines, which is a further emphasis to incentive policies at an earlier stage. Therefore, many enterprises become more confident in producing engines independently. What’s more, as some enterprises have already gained the supportive policies of the government at present, the pace of autonomotion will be more rapid. （translator：Yalong/Jessie）

　　See original Chinese report Please click