Author: Dengsu Yong Yin Bogu
Xinhua News Agency, Nanning, November 28 (Reporter Deng Suyong Yin Bogu) Yang Hexiang, a researcher at the Macroeconomic Research Institute of the National Development and Reform Commission, said in Liuzhou recently that China’s auto industry is extremely hot and there is an investment bubble in supply, and the country’s entire vehicle production capacity will be greatly increased. Exceed market demand.
Yang Hexiang said at the 2005 Liuzhou Forum that auto giants have invested in China and the domestic auto market has entered an unprecedented expansion period. The auto industry is overheated and there is an investment bubble in supply. The country currently has 27 provinces and cities engaged in autos, 21 provinces (cities) produce cars, a total of 2443 auto companies, of which 115 are complete vehicle factories, 551 refitting plants, 154 motorcycle factories, 56 engine manufacturing plants, and automobile motocycles. There are 1567 vehicle accessory factories and 168 related supporting industries.
Yang Hexiang pointed out that China's current vehicle production capacity is about 5.5 million vehicles. In 2007, the total production capacity exceeded 15 million. By then, the national vehicle production capacity will greatly exceed the market demand, and domestic automobile supply will enter the era of excess. Moreover, due to the large-scale entry and expansion of production capacity of foreign and private enterprises, the surplus of auto products will be the norm, and the structural supply shortage will be temporary.
Yang Hexiang believes that China’s automobile industry is essentially an assembly plant for automobile powers and the world's automobile giants. The auto market is dominated and operated by multinational giants. We rely on “selling the market†to attract the world's auto giants to enter China. The domestic car market is dominated by foreign brands, and most of the new cars are based on technology introduction and joint venture development.
Yang Hexiang suggested that Chinese auto companies should develop and produce new products and promote product upgrades in accordance with market demand and policy orientation. Through the strategic reorganization among enterprises, the optimization and upgrading of the automobile industry's organizational structure has been achieved, and it has occupied a place in the fierce market competition.
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