In April of this year, the Measures for the Administration of the Import of Auto Parts that Constitute the Characteristics of the Vehicles, jointly issued by the General Administration of Customs, the National Development and Reform Commission, the Ministry of Finance, and the Ministry of Commerce, were formally implemented. The purpose of the "Measures" is to curb the trend of some domestic automobile manufacturers to use spare parts to build cars in the past two years, and to enable the healthy development of China's auto industry and auto parts industry.
Recently, a voice came from the European Union. If the dispute with China on import tariffs on auto parts cannot be satisfactorily resolved, the EU may file a lawsuit against the World Trade Organization. The lawsuit is mainly directed at the "Administrative Measures for the Import of Automobile Parts That Constitute the Characteristics of the Vehicle". If the imported parts and components constitute the characteristics of the vehicle according to the standard, the tariff will be levied according to the tariff rate of the imported vehicle.
Jia Xinguang, chief analyst of China Automotive Industry Development Consulting Co., said in an interview with the China Economic Times reporter: "After implementing the "approach," if the localization rate does not reach 60%, it will be levied at a vehicle tariff of more than 30%. 60% of them are levied at a 10% component import tariff, which is very important for car manufacturers, especially those who have just entered China, or for some models with low localization rates. The implementation of the "Measures" will lead to an increase in the production costs of the vehicle manufacturers, and it will be difficult to compete in the market."
Why did the EU get into trouble?
The European Union's complaints after the implementation of the "Measures" mainly include the following two aspects: First, the localization rate has difficulty in reaching the targets in the short term; second, the procedures for customs clearance and customs clearance are too complicated.
At the end of November, when Ivan Hordach, the secretary-general of the European Automobile Industry Association, came to China, he said on the last question: "I hope the "approach" can consider the difference in the localization of different models, such as giving new cars 2-3 years. 'Grace time', and the tax rate of import duties depends on the degree of assembly. When importing, parts and components do not know how much tax to pay, and the same part may have different taxation.
Speaking of the localization of automakers entering the Chinese market, Jia Xinguang said: "The policy has made domestic cars, especially high-end cars, more difficult to make locally. Typical examples are BMW and Mercedes. Take Mercedes as an example. The purpose of adopting a global procurement approach is to ensure the use of internationally competitive parts and components to protect the brand's influence, and the implementation of the Measures will lead to an increase in the threshold for the procurement of parts and components and the full import of domestic Mercedes-Benz into China. ."
According to the information released by the National Development and Reform Commission, in the joint meeting of relevant national ministries and commissions in April this year, after a fierce dispute, various ministries and commissions reached an internal agreement in the specific implementation process that allows Beijing Benz and Brilliance BMW to suspend the two luxury car production plants. One year implementation of the "imported parts shall not exceed 60%" provisions. The reason why this is done is to prevent Mercedes-Benz and BMW from seeing too harsh domestic conditions, skip the 60% standard directly to pay vehicle tariffs, write articles on non-critical parts, or simply raise the car price or reduce production. In this way, the "measures" restrictions will be ineffective and violate the original intention.
When the first batch of domestically produced BMWs was launched two years ago, with the exception of four Goodyear tires assembled in Shenyang, almost all other internal components and vehicle peripherals were shipped from Germany. To 1%.
The relevant person in charge of Beijing Benz also admitted that since Mercedes-Benz has a very high technological content, the first batch of domestic Mercedes-Benz used the form of imported imported parts in China and could not reach the localization rate stipulated in the Measures within a short time.
The reason why luxury cars are so low in localization in China is that apart from the reasons why companies launch products to seize the market and protect their own brand image as quickly as possible, another problem that cannot be ignored is that they find it difficult to find suitable fitting manufacturers in China. The supply of domestically produced original devices will naturally lead to a low localization rate.
“The low market share is one of the important reasons why luxury cars have to be assembled.†In the first 10 months of this year, China’s production of cars was 2.21 million, and 310,000 cars were produced by CKD, among which displacement With only 31,000 vehicles over 2.5L, it can be seen that the output of luxury cars is very small. "The scarcity of production has forced manufacturers to produce by assembly. Take the engine as an example. With hundreds of thousands of automakers in the world as a unit, it is impossible to set up a separate engine factory in China because of your tens of thousands of vehicles. The concern is not only about the localization rate and output of automobiles, but it is the most important for auto accessory companies to enter China, said Jia Xinguang.
At the end of 2003, Presley, President of BMW Brilliance Automotive Co., Ltd., stated at the launch ceremony of the new BMW in Beijing that BMW would achieve a localization rate of 40% within a short transitional period. However, due to various factors such as the price and the market, BMW's poor sales led to the localization of BMW's purchase rate in Shenyang for almost a long time. In November last year, senior officials of the Liaoning Provincial Government met with the president of the BMW Group, Punk, which specifically addressed the issue of strengthening localized procurement. Subsequently, BMW transformed its mentality in China, changed its previous marketing strategy, emphasized market focus, launched low-end models, and seized the market with price advantages.
In the first 9 months of this year, BMW's sales volume in the mainland market has increased by 36.4% year-on-year to 16,999 units, of which domestic BMW sales have increased by 46.9 percent. %, reaching 11,548 vehicles. It is believed that with the continuous improvement of production and sales, the gradual standardization of industrial policies, and the cost pressure of BMW, localization is a matter of time.
As for customs clearance and customs clearance procedures that are too complicated, Yao Jie, secretary general of the China Association of Automobile Manufacturers, told this reporter: “All policies and regulations concerning automobiles in China are being established and improved, from the formulation and adjustment of a policy to policies. The implementation of the relevant regulations and the effective supervision thereof is a gradual process. Some contradictions that arise in the short term are unavoidable because it is irrational to raise this issue to the government level. Both Chinese and foreign parties hope to increase the localization rate. The EU did not It must be resolved through the WTO. This is unfavorable to both Chinese and foreign parties."
Ivan also said that European auto companies are very much looking forward to peacefully resolving this dispute and hope to strive for a 2-3 year transition period to increase the localization of enterprises. The most undesirable thing is for WTO arbitration.
Local enterprises should be "autonomous"
How does China achieve the rise of the auto industry in the context of economic globalization? Experts believe that first of all, we need to be both open and autonomous, that is, we must strengthen our capabilities and cure “dependent diseases†in opening up. To improve capabilities, we must develop our own brands, achieve independent development through self-owned brands and then independent innovation, improve our core competitiveness, and realize the transition from “localization of assembly manufacturing†to “development of localization†and “indigenization of knowledgeâ€. Ultimately, it will enter the virtuous circle of the auto industry's independent development.
"The purpose of the "Measures" is to put those small plants together to clear out and prevent the KD from being too serious, which will have a bad influence on China's auto manufacturing industry. In the 1-10 assembly vehicle manufacturers' share this year, the economy The sedan is a considerable part of the total, 18,000 units of 1.0-2.0L, and 87,000 units of 2.0-2.5L, which should be suppressed.†Jia Xinguang said.
The formulation and improvement of national policies and regulations concerning automobiles is to ensure the healthy development of the automobile industry. “The government is the maker and defender of the economic order. From the perspective of the relationship between the government and the auto industry, the government provides good order for the development of the economy and ensures the healthy development of the market. Overprotection by the government is also not conducive to the automotive industry. The government’s intervention should be short-lived and limited. The development and expansion of China’s auto parts industry depends more on the good development of the company’s own, independent development, and independent innovation, giving full play to its advantages and basing itself on the market. This is the most fundamental," Yao Jie said.
According to the statistics of the China Association of Automobile Manufacturers, from January to November this year, the cumulative production and sales of automobiles both exceeded 5.1 million, which exceeded the previous year's full year in advance. The rapid growth in automobile production and sales has driven the demand for auto parts in the Chinese market. In 2004, the scale of China's auto parts industry reached 440 billion yuan. It is expected that this figure will reach 500 billion yuan by the end of 2005 and reach 700 billion by 2010.
Accompanied by the rapid growth of China's auto parts and accessories products import and export. The reporter learned from the importers of Chinese machinery and electronic products that the export of auto parts reached US$7.26 billion in January-October this year, the import figure was US$6.72 billion, and the export value continued to maintain a growth rate of more than 50%, while imports Parts are relatively slow. However, Chinese parts and components companies still face many problems, such as low technology content of exported products and weak brand advantages.
Xiao Yaping, director of the International Cooperation Department of China Machinery Federation, told this reporter: “China has a huge potential in the automotive market and a competitive labor cost advantage, plus China’s strong overall manufacturing advantages and abundant sources of raw materials, China’s Parts companies still have a strong competitive advantage in the international market, but we should also note that most of our products with international competitiveness are labor-intensive and resource-intensive components, and the technical content is not high. Parts companies also have the disadvantages of small scale and chaos, insufficient research and development, lack of brand awareness, and poor international competitiveness.
Nowadays, under the background of the global transfer of parts and components to developing countries, China’s auto parts industry also has great potential. Under the huge temptation of the Chinese auto market, multinational auto parts companies are scrambling to come to China to compete with each other. By way of investment cooperation, domestic auto parts companies face brutal competition, and the competition in the international auto parts and accessories market is also constantly increasing. How to change the nature of enterprises, increase product added value, reflect the characteristics of the company, as soon as possible In line with international standards, meeting the competition and challenges of international component giants has become an urgent problem to be solved by China's parts and components companies.
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