Germany, U.S. and Japan: World’s Top 3

　　Editor's Notes: In 2009 China became the world's largest auto market and new cars sales attracted attention from the world. Some have argued that China has become a powerhouse in terms of automotive industry and is becoming stronger. Others have argued that China has begun to take some features of automotive powerhouse.

　　The curtain of 2010 sessions of National People's Congress and Chinese People's Political Consultative Conference has already risen. Therefore Sohu Auto launched a special survey named the Roadmap for the Development of China's Automotive Powerhouse. As a part of the chain of Chinese auto industry, Sohu Auto is so honored to make contributions to the sustainable development of Chinese auto industry.

　　The survey started since February 23. Sohu Auto sent mails to several respondents in the auto industry. 153 usable questionnaires were collected by 20 p.m. on February 25. Among the respondents who offered valid feedbacks, there were 36 industry experts and commentators, 105 media staffers and 12 auto executives. Since February 26 Sohu Auto will open the entrance for online viewers. In addition to getting access to the views of general public, Sohu Auto will continue collecting information from relevant government officials, executives, experts and scholars and directors of auto media. A wider range of opinions from leaders will be gathered by Sohu Auto.

　　Among the respondents who have sent feedbacks to Sohu Auto, we notice that there are: Mr. Jia Xinguang, the Chief Commentator of Sohu Auto; Mr. Rao Da, the Secretary of China Passenger Car Association; Mr. Yang Zaishun, the Deputy Secretary of China Passenger Car Association; Mr. Xu Xiangyang, the Deputy Dean of Beijing University of Aeronautics and Astronautics; Mr. Chen Guangzu, the senior expert in Chinese auto industry; Zhang Yi, the senior correspondent in Xinhua News Agency; Liu Jing, editor in chief of Auto Weekly of the Beijing Evening News; He Xingyan, editor in chief of Auto Section of the Beijing News; Yang Ming, editor in chief of Auto Section of the Hangzhou Daily; Zou Yong, editor of Auto Weekly of the Youth Newspaper in Shanghai; Xiong Chicheng, editor in chief of Auto Section of the Jiangnan Metropolitan News; Cui Yifan, editor in chief of the Liao Shen Evening News. In addition, Guangzhou Auto Toyota Motor Co., Beijing Hyundai Motor Co., Ltd., Dongfeng Peugeot Citroen Automobile Co., Ltd., Dongfeng Yueda Kia Automobile Co., Ltd. and other major automakers from home and abroad also sent feedbacks to Sohu Auto.

　　Sohu Auto selected several countries which have a strong hand in auto industry as alternatives for automotive powers. Among them there are the United States, Germany, Japan, Britain, France, Italy and Korea. Sohu Auto received 153 valid questionnaires. Finally, Germany, the United States and Japan are elected with higher number of votes, showing that traditional automotive powers still have far-reaching implications on Chinese auto market. Following is the specific data:

　　Please select automotive powerhouses in the world based on your notions:

　　A. the United States 39 votes

　　B. Japan 43 votes

　　C. Germany 45 votes

　　D. France 11 votes

　　E. Korea 10 votes

　　F. China 3 votes

　　G. Britain 5 votes

　　H. Italy 12 votes

　　I. Others 2 votes

　　The Vice Minister of Ministry of Industry and Information Technology Miao Wei, who once worked in automotive industry for a quite long time, pointed out that an automotive powerhouse should have three main conditions. First of all, it is necessary for an automotive powerhouse to have a world-renowned domestic enterprises and brands with international competitiveness. Second, an automotive power should learn to use resources and develop overseas with holding certain shares in the international market. Third, an automotive powerhouse should master core technology and development trend of new technology as well as support and guide the technological upgrading of actual automotive products. During that process, the automotive power should foster independent capability of products. Most experts and scholars said that although China has become the world's largest automobile market, the entire country has just stepped into the threshold of auto society. The per capita level of car ownership is very low. The biggest advantage is that China has some potentials. But as to the term of automotive powerhouse, there is still a long way to go for China.

　　Car ownership and car sales

　　In the survey, most respondents insisted that there were several reasons to explain why Germany, the United States and Japan were traditional automotive powers. On one hand, those countries have several world-renowned auto brands. On the other hand, the car ownership is an important standard. For example, the United States is called as the "Country on the Wheel", a country with largest number of car ownership in the world. Now the globe has one billion vehicles, one third of which are in the United States. At the same time, the automobile penetration rate in the United States has reached close to 80%. In terms of the car ownership, China is far behind the United States. Now China's car ownership is about 60 million units. Although the increase is quite sharp every year, the coverage rate in China is only about 5%. In addition, many experts believed that besides the size of market and sales of new cars, the development of used-car market is also an important criterion to measure an automotive power. In traditional automotive powers, the sales of second-hand vehicles are usually twice as many as those of new cars. However, in China the sales account for only less than one quarter compared with those of new cars. For example, if the car sales in one country include new car sales and used car sales, the total car sales in the United States in 2009 is about 20 million units. Last year China's new car sales totaled 13 million units and the used car sales were about three million units. Therefore compared with the United States the gap still exists.

　　The lack of well-known brands and large-scale exports

　　Based on what Miao Wei mentioned above, an extremely important element of automotive power is that world-renowned auto brands are necessary. According to the survey carried out by Sohu Auto, most respondents agreed that the brand is the crux of the problem. At present, China's own brands have not formed an absolute advantage domestically and in international markets. Besides world-renowned brands, auto exports are also an important indicator for an automotive power. For example, nearly 50% of Germany and Japan's car production is for exports. The sales of China's own brands are mainly oriented to the domestic market. In 2009 the proportion of exports only accounts for 5%. Due to the impacts of international financial crisis, the proportion is continually shrinking. The development of China's automotive industry is quite dependent on foreign auto brands. In the fastest-growing passenger car section, Chinese own brands' market share has increased. However, the increase mainly lies in the low-end models. China's own brands are lack of independent property rights of core components and technologies. China needs to import several components in large quantities. As to the research capability, the United States, Germany and Japan have a high internationalization rate in automotive industry. Typically the global market has to shoulder the high R&D cost. In China, automakers from the above-mentioned three countries established their own R&D centers. However, till now China has not fostered a local multinational automaker. (Translator: Qinghua/Hanxin)

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