Multinational Auto Giants' Top Three Competition Moves to China

With the change in the number of car seats worldwide, Volkswagen has surpassed Toyota for the first time, becoming the world’s second-largest automaker after GM, while Toyota Motor was affected by the Japanese tsunami and the Fukushima nuclear crisis, seated in 2010. The world’s first place becomes the third place in the world.

Faced with GM, Volkswagen, Toyota's competition in the global market, the Chinese market is increasingly important for the re-determined seats in the future. At present, China has become the largest single market for GM and VW in the world. Toyota, which is lagging behind in the Chinese market, naturally refuses to stop. In addition to increasing investment and R&D, it also shifts all decision-making teams from Toyota China, which was previously located in Japan, to China has demonstrated its resolve to fight the Chinese market.

Car analyst Jia Xinguang believes that the test that each car company will undergo in 2012 has only just begun. The increase in market share of the Chinese market in global sales will determine the ranking of car companies in the global market.

Toyota's review of China's strategy Toyota finally realized that it needs a "revolutionary" change in the Chinese market. Recently, in order to promote the on-site decision-making in the Chinese market, Toyota Motor has transferred part of the functions of the China Ministry of Toyota Headquarters to Toyota China, and the Toyota China Sales Planning Department and Business Unit have been formally established. Among them, the Sales Planning Department replaced the sales plan of Toyota Motor Corporation's headquarter in China to match its operations in China. The China Department of Toyota's headquarters will not be canceled, and the production-related business room department will remain in Japan and will not move out.

The spokesman for Toyota China News, Nguyen Nguyen, told reporters that prior to the institutional adjustment, China’s policy decisions need to be coordinated by both China and Japan before they can get the decision of China’s headquarters. After the adjustment, all decisions concerning China were completed in China.

“After getting rid of the unforeseen factors of consecutive years, Toyota Motor began to accelerate the reform of the Chinese market.” Jia Xinguang said.

In fact, as early as last year Toyota Motor began to change. Last year, Dong Changzheng was appointed as the deputy general manager of Toyota China and became the first Chinese person to assume this high-level position. This is seen as a signal that Toyota wants to completely localize.

However, the large-scale recall affected Toyota Motors’ leader Tomoko Toyoda’s further implementation of localization in China last year, which also led to Toyota’s “backwardness” in the Chinese market.

After a series of changes, Toyota announced in its 2011 global vision that in 2015 China's sales volume will account for 15% of its global sales, that is, more than 1.5 million.

Volkswagen's preemptive overall layout In fact, since the “2018 Plan” was proposed, the Chinese market has become the largest single market in the world. According to the plan, in 2018, Volkswagen’s global sales volume will reach 10 million, becoming the world's number one. To achieve this goal, the global market share of the Chinese market is crucial.

Statistics show that in 2011, Volkswagen sold 2.26 million vehicles in the Chinese market, an increase of 17.2%, accounting for 28% of its global sales. Although the overall sales target for this year has not yet been announced, according to data disclosed by the VW joint venture in China, Volkswagen’s sales this year are expected to maintain an increase of more than 10%.

Two years ago, Volkswagen officially launched the "South Strategy" in China. After two years of intensive cultivation, Volkswagen's southern strategy has achieved remarkable results. Volkswagen's share in the South China market has reached 15.8%, which is faster than the national average. From the perspective of its two major joint ventures, FAW-Volkswagen has maintained a growth rate of more than 30% in the Southern market for two consecutive years. Shanghai Volkswagen has even more noticeable. Shanghai Volkswagen’s market share has increased from 6.6% to 8.2 at the end of 2011. %, only 1% of the gap with the first place.

In addition to the "Southern Strategy," Volkswagen is still planning to enter the "western strategy" of western China. Although compared with the strategy in the south, the strategy in the west has been low-key, but the localization of the public in China has already begun quietly. Last year, FAW-Volkswagen pioneered the operation of a new plant in Chengdu. The new plant is designed to produce 350,000 vehicles a year. According to sources, Shanghai Volkswagen also plans to build the sixth Shanghai Volkswagen plant in Urumqi and increase investment in Western strategy.

The industry believes that the public obviously has a comprehensive layout considerations. With the finalization of the planning of the Northwest Base, the layout of Volkswagen’s industry in China has become unprecedentedly complete, relying on FAW and SAIC’s two partners to form more dense production with production bases located in the northeast, east, south, southwest, and northwest. Manufacturing and sales service network.

General Multi-brand Attack Although General Motors regained the number one spot in the world with the performance of the Chinese market, GM did not dare to ignore the pressing competition from competitors. According to the plan, General Motors will launch more than 60 new and upgraded models in China, and strive to achieve sales of more than 5 million, achieving a 17% annual growth target.

According to Shanghai General Motors, General Motors will launch 5 models such as the Chevrolet Malibu and the Chevrolet Revue Vision in the Chinese market this year. In the next four years, General Motors will launch more than 60 new and upgraded models in China. It is noteworthy that there is news that GM Shanghai joint venture company in China will establish a branch in Wuhan to build a new base for 300,000 vehicles a year. This will be the fourth passenger car production base of Shanghai GM following Shanghai, Yantai and Shenyang. Although the news was not confirmed by Shanghai General Motors, the layout of GM in China has apparently been quietly launched.

At present, Shanghai General Motors has a combined annual production capacity of 960,000 at the three major bases in Shanghai, Yantai, and Shenyang. The Shenyang plant is also expanding its production capacity by 100,000 units. In addition, SAIC-GM-Wuling is currently planning to build a new production base in the western region. Industry insiders predict that if GM wants to complete the annual sales target of 5 million vehicles, in addition to introducing a multi-brand strategy and increasing product launches, the deployment of new production capacity in China has become inevitable.

It can be seen that the three major multinational auto giants of GM, Volkswagen, and Toyota are already in full swing in China. return.