Zhang Xiaoyu: China’s auto industry

　　【Editor’s Note】 On July 15, China's auto industry has passed 57 years, and the seventh Changchun International Auto Show grandly opened on this day. Meanwhile, annual meeting of China Automotive Association of Engineering was held grandly. At this meaningful day, Sohu Auto interviewed Zhang Xiaoyu, vice president of China Machinery Industry Federation and chairman of China Automotive Association of Engineering. Looking at nowadays and looking back, he has many feelings. Sohu Auto talked about 57 years of development of China’s auto industry with him. Historical task under new situation, harmonious development between auto and society, and government’s regulation on China’s auto industry were also talked about. Following is the excerpt of our interview.

　　China’s auto industry got through three big steps in 57 years

　　Sohu Auto: Hello president Zhang. Today is a special day, and it is the 57th anniversary of foundation of FAW. As a witness of development of China's auto industry, can you roughly look back development process of China's auto industry in recent years?

　　Zhang Xiaoyu: Changchun is a new starting point or origin place for China’s auto industry. In other words, China's auto industry has passed a process from zero to some, small to large, and from big to strong. FAW is the most representative enterprise of China’s auto industry during the three big steps.

　　The first step is from zero to some. In 1950, manufacturing capacity of China was almost zero. In 1956, the first year that FAW had just put into operation, and after three years of construction, its production actually was 1640 unit. This was the situation of FAW then, and this is from zero to some.

　　It has gone through a long process from small to large. FAW introduced a full set of technology from the Soviet Union and it was one of the major projects of the Soviet Union’s 156 assistance projects to China. Construction of platforms, three years of ground-breaking, 56 years in operation, and then the production capacity was 1640 units. Then the output of FAW was the total output of China. It went through a very difficult course of development, from put into operation in 1956 to three years of hard time. China’s total output in 1962 was more than 9000 units, and then output of FAW was more than 4000 units.

　　It is very difficult, after the Cultural Revolution, until 1968, year of the Cultural Revolution, all output was 25,000 units, and output of FAW production was about more than 10,000 units. From the Cultural Revolution in 1968 to 1978, China’s car output was 149,000 units in 1978, and production capacity of FAW was more than 40,000 units. It has been the most important part of market share of China's auto industry output. Output of FAW was close to 2 million, and it can be more than 2.5 million units this year, which is still growing.

　　Therefore, since 2000, FAW and China’s auto industry have been in rapid growth. Output of China’s auto industry was 2 million units, and then output of FAW was about more than 200,000 units, which accounted for one-tenth of China’s car output. As a result, development of China’s auto industry from small to large was 10 years after reform and opening up. China’s output increased from 2 million to 14 million units last year. No matter how bad this year, I reckon that it can be more than 16 million, and it was 8.5 million units in the first half of 2010.

　　Last year we celebrated China’s output reached 10 million units at FAW in November last year. Why chose FAW? It is the cradle of the China’s auto industry, and it became the most representative and the dominant part of China’s auto industry. It is about one-tenth of the China, and it is from big to strong. (Translator: Qinghua Wade)

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100715/n273528944.shtml