Press the auto unified big market fast forward button


Zhao Jianguo

"Without a market monopoly, you can shop around for the right car at a fair and reasonable price..." As the consumer Mr. Zhang said, accelerating the construction of a unified large market in the automobile industry is not only a requirement at the national level, but also the expectation of consumers in the New Year. "Accelerating the development of a large unified national market will play a positive role in facilitating the smooth circulation of the domestic market, stimulating market vitality, reducing transaction costs, releasing the potential of domestic demand, and consolidating the foundation for a sound economic recovery." On December 26, 2023, at the regular policy briefing of The State Council, the relevant heads of the four departments of the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Transport, and the General Administration of Market Supervision all stressed the practical significance of accelerating the construction of a national unified large market.



We will accelerate the development of a large automobile market


The automobile market circulation is directly related to the interests of consumers, and a typical case investigated by the market supervision department is thought-provoking. A second-hand car trading company in Zhejiang Province held a meeting to organize several local enterprises to unify the specific charging standards for local second-hand car trading services and form a written document. The market supervision department found that its behavior fixed the price of local second-hand car trading services, excluded and restricted fair competition in the second-hand car trading market, damaged the interests of consumers, and violated the relevant provisions of China's Anti-monopoly Law. Therefore, it was decided to order the parties to stop the illegal acts, and the total amount of fines was about 5.538 million yuan.


"In the field of automobile circulation, whether it is new or used cars or scrapped vehicles, it is necessary to be able to flow nationwide at a lower cost to improve the efficiency of circulation and benefit consumers and relevant parties in the market." Lang Xuehong, deputy secretary general of China Automobile Circulation Association, said in an interview with a reporter from China Automobile News that accelerating the construction of a national unified large market, which is a very clear direction, including breaking down local protection and regional barriers in automobile circulation, otherwise the market is in a state of segmentation and fragmentation, and the lack of flow and competition in resource elements. It can only be limited to a narrow range to achieve a low level of configuration, which is inevitably not conducive to the development of the automobile market and the automobile industry.


In China's automobile production and sales increase year by year, the rapid expansion of the market, speed up the construction of the automobile industry national unified market has attracted much attention. "Accelerating the construction of a national unified large market for the automobile industry in the New Year is conducive to breaking local protection and market segmentation, promoting the accelerated flow of" living water "of superior resources, so as to alleviate the consumption and loss caused by regional imbalance and non-standard." Roland Berger global partner Yuan Wenbo said in an interview with China Automotive News.


"The automobile industry is one of the few pillar industries with a trillion yuan output value in China, and it is also one of the pillars of domestic consumption with a long industrial chain of terminal products and greater added value of consumption. Therefore, accelerating the construction of a unified national market for the automobile industry is of great significance for the high-quality development of the industry, the upgrading of consumption quality and the improvement of people's quality of life." China (Shenzhen) Comprehensive Development Research Institute of finance, taxation, trade and industrial development research center director Wei Fulei told "China Automotive News" reporter.


Eliminate blocking points and standardize circulation


Like everything else, there are also blocking points and pain points in building a unified national market for the auto industry.


"At present, the foundation and conditions for accelerating the construction of the national unified large market for the automobile industry are gradually maturing, and there are more policy supports, overcoming difficulties, opening up local 'intestinal obstruction', eliminating the blocking points and pain points, in order to make a difference in accelerating construction." Fan Yongjun, secretary-general of Chengdu New Energy Automobile Industry Promotion and Application Promotion Association, believes that from the perspective of system theory, the national unified market of the automobile industry is a multi-dimensional and multi-level system, the core of which is smooth and standardized, including automobile industry chain, supply chain, consumption and after-market, use and scrap recycling and other links. It also includes relevant enterprises and local and industry organizations. Especially in some emerging areas and the end of the branch, the standard degree needs to be improved.


These concerns are not unfounded. In August 2023, it was reported that Tesla was banned from an airport in Hunan Province because the Tesla camera with sentinel mode was still collecting video data around the car after the power was turned off, and there was a risk of revealing trade secrets and personal privacy. In this regard, despite Tesla's explanation, it has triggered a heated debate on how smart car data is protected and used in accordance with the law.


Yuan Wenbo believes that automobile data also includes production and sales, project investment and construction data, and on the basis of protecting trade secrets and personal privacy in accordance with the law, the effective and timely exchange of relevant data is the key and foundation to guide the balance of supply and demand in the automobile market. In addition to the data elements related to automotive products, some "nodules" in the automotive industry chain have also had an impact on accelerating the construction of a unified large market in the automotive industry. "From the upstream raw material market and battery market to the downstream vehicle consumption and aftermarket, they are all part of the unified large market of the automotive industry." Fan Yongjun said that, like the power battery market, capacity in the past few years, "lack of core and less electricity" is seriously insufficient to blindly start and expand production, "overheating" brings "excess", there is "Wolf meat less" phenomenon, 2023 power battery capacity utilization rate may only be about 40%, The market price of lithium carbonate per ton has dropped from a high of 600,000 yuan 2 years ago to only about 100,000 yuan at present, and there are many human factors from local and corporate influences between rises and falls, which is worth reflecting on.


"It involves the incorrect orientation of local protection and blind greed in individual local industrial support policies." Waverley believes that the non-unification of local policies has greatly increased the market transaction costs of auto companies, brought artificial unfair regional competition, formed market barriers, destroyed the market ecology, and ran counter to accelerating the construction of a unified large market for the auto industry. Therefore, in accordance with the guidelines of the state and the competent authorities, we should carry out special rectification of problems such as hidden market segmentation and local hidden protection, remove various obstacles that are not conducive to the construction of a unified national large market, and eliminate blocking points at the end of some branches to promote and accelerate the construction of a unified large market for the automobile industry.


Continuing to increase speed is important


Accelerating the construction of a national unified large market for the automobile industry is an inevitable requirement for smooth domestic circulation and promoting the construction of a new development pattern for the automobile industry, and it is also an important starting point for releasing the potential of domestic demand, consolidating the economic recovery and improving. The automobile industry needs to unify the big market, but also the inherent requirements of the high-quality development of the automobile industry, such as quickly improve the basic system of market access, property rights protection and trading, data information, social credit, etc. In some key reform areas, we can increase the efforts to explore and explore and establish various systems and rules conducive to the construction of a national unified big market.


"With the increase in car ownership, it is easy to overlook that the car scrapping and dismantling market should be paid attention to, and it can also establish a national unified market." Lang Xuehong said that the size of this market is expected to reach 10 million in the next five years, but the current scrapping and dismantling efficiency is low, if the establishment of a national unified large market, concentrated in several regions to carry out the deep dismantling of the same series of vehicles, recycling parts for cross-regional flow, efficiency and utilization will be significantly improved. Therefore, to accelerate the construction of a national unified large market in the automobile industry, the core is to achieve greater scale effect and agglomeration effect through an effective market mechanism, reduce circulation costs and transaction costs, and thus reduce the operating costs of enterprises.


"A series of measures to speed up the establishment of a national unified large market key in the detailed implementation of local access, bidding, government procurement, investment and other areas of local protection, to timely correction and accountability, to ensure that good policies are truly implemented, for the future development of the auto industry." Zhang Yongwei, vice chairman and secretary-general of the China Electric Vehicle 100 Association, believes that local subsidies to auto manufacturers can be canceled, because long-term subsidies will bring problems such as fraud and product pricing distortion, and funds should be used to support the construction of new energy vehicle infrastructure, as well as subsidizing electricity, parking fees, etc., to provide protection for car use.


"China's auto production and sales have been leading the world for several years, and China is also the world's largest new car market. Accelerating the construction of a national unified market for the auto industry is the basis and premise for building a new development pattern." Wei Fulei said that in 2024, accelerating the construction of a national unified large market for the automobile industry, promoting the smooth flow of automobile commodity factor resources in a larger scope, and promoting the large market of the domestic automobile industry to become an organic cohesion and coordination of the whole, will further enhance the advantages of China's large scale automobile market, and help China to move forward from an automobile power to an automobile power.


Originally published by China Automotive News, January 8, 2024