"Cost Innovation" Creates "Reliable Manufacturing in China"


"The timing of large-scale export of Chinese automobiles has matured." At the recent "High-tech Summit on Scientific Development of China's Light Trucks for 50 Years", Zhang Xiaoji, Chairman of the China Association of Automobile Engineering, said that the proportion of self-owned brands in China's light truck industry is as high as 95%, and the scale exceeds 100%. Ten thousand vehicles have become an important support for the light truck industry to go to sea. In recent years, China's auto vehicle exports have maintained a high growth rate for four consecutive years. According to the latest customs statistics, China exported 193,000 light trucks under 5 tons in 2007, accounting for 77.8% of the export volume of trucks, and accounted for nearly one-third of the export volume of cars.

The export situation is very good and there are many problems. It is understood that the areas currently exported by China's light trucks are still concentrated in the Middle East, Africa, and Latin America. "Because the purchasing power of users in these areas is not strong, and the product quality requirements are not high, China's light trucks are easy to occupy the market with cost-effective advantages. Moreover, these regions are in a period of rapid economic development and there is a huge market space," said Zhou Liang, general manager of Nanjing Iveco.

A set of data validates Zhou Liang's point of view. In recent years, the average growth rate of the light-duty card market in the Middle East has reached 30%, while the increase in the European and American markets during the same period was only 3%. In Russia, another major area where trucks are exported, Russia has adopted stricter entry standards for commercial vehicles in China this year, including the strict implementation of Euro III testing and the increase of truck safety testing from two items to nine items. In January of this year, the export of Chinese trucks fell 26.26% from the previous month.

Zhang Xiaolu said: "Simple low-cost advantage is unable to form a sustainable competitiveness. Light trucks have a strong domestic market to rely on, it should be a breakthrough in exports." He believes that in the turning point of globalization development, China's light-duty card industry should be as soon as possible From opportunistic exports to strategic exports.

At the summit, the cost innovation theory proposed by Nanjing Iveco became one of the focuses of attention. Zhou Liang said that between "Made in China" and "Created in China," national brands still need to go through a phase that is "trusted manufacturing in China." Zhou Liang said: "To be frank, the image of 'Made in China' in the international arena is not good, and we have overemphasized the leap from 'manufactured' to 'created' and it is easy to pull off. We believe that we must first make 'Made in China' available. Trust, so that we can lay a solid foundation for its internationalization."

Zhou Liang said that an important way to create "trustworthy Chinese manufacturing" is cost innovation. For a long time in the future, compared with Europe and the United States, the Chinese market will still have obvious cost advantages. Therefore, independent brands should fully grasp this opportunity and actively carry out technological innovation. “For example, we will leap forward with Iveco's production technology, brand philosophy, and operation model. This leap-forward quality will gradually meet the standards of the European market, but production is still in China, so that its price is very competitive in the European market. Over time, the market will rely on the leap forward brand instead of just accepting this product, he said: "The ultimate goal of cost innovation is to mobilize international resources to operate Chinese companies and build a national brand with a global perspective. ”

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