New energy car joint stock is more than letting go of the game of Chinese and foreign technology and strength

The new openness of the Chinese auto industry is a cause for concern. On April 17, 2018, the National Development and Reform Commission of the People's Republic of China further clarified the timetable for the opening of auto industry stocks after President Xi Jinping announced at the 2018 Boao Asia Forum that "will release restrictions on foreign auto companies as soon as possible."

"This is a measure to further open our country to the outside world. "The director of the Institute of World Economics of the Shanghai Academy of Social Sciences weighed the first financial reporter. He pointed out that China's manufacturing industry has been open for nearly four decades, and the auto industry has been greatly improved through its own development. At present, from the production point of view, the supply and demand market share has reached a new stage, and the immediate need is to improve quality. Including meeting consumer demand for international brands and related services. Further opening up will help the Chinese auto industry to improve its own strength in competition and cooperation, and on the other hand, it will also help to reduce the prices of related products and services.

On balance, there is a need to look at stocks at a higher level in a larger pattern than opening up and opening up.

A cautious attitude from the outside

According to the new timetable of the NDRC, the Chinese auto industry will implement a transitional period of classification and opening, and in 2018 it will cancel the restrictions on the ratio of special vehicles and foreign investment in new energy vehicles; Cancel the restrictions on the ratio of foreign capital to commercial vehicles in 2020; In 2022, the restrictions on the ratio of foreign capital to passenger vehicles were lifted, and the restrictions on joint ventures not exceeding two were lifted. With a five-year transition period, the auto industry will lift all restrictions.

For most foreign car companies, which have already set up joint ventures in China to localise production of the country's main products, stocks will be more complex and indirect than the impact on them and on the joint ventures they have established in China. Take Volkswagen Group as an example. In 1985 and 1991, it established joint ventures with two Chinese partners, SAIC and FAW. In 2017, the Chinese market accounted for more than half of the global sales of mass brands and has become the current Volkswagen Group. The most important source of profit. It can be described as a profit cow.

"The Chinese government's move will further promote free trade and economic development, and it will also be beneficial to the development of the entire Chinese market. HerbertDiess, chairman of Volkswagen's board of directors, told First Financial that the relationship between Volkswagen and its joint venture partners had long been one of mutual trust and had been going on for many years. The success of the joint venture is largely due to the strong joint venture partners SAIC and FAW. "At present, this policy change has no impact on the group's development strategy. Mr Deeds stressed that the new policy had not led the public to reconsider the equity or financial arrangements the group had made.

Distis also revealed that during the senior internal meeting of the public during the Beijing Motor Show, senior officials also discussed the impact of the new policy direction on the public from the entire group level. "We have given the team the task of drawing up a detailed plan over the next two to three months to explain what Volkswagen should do in such a new policy environment to fit into the direction of Chinese policy," he said. "

As for the transfer of FAW-VW shares to Audi under the previously agreed agreement, the current agreement is postponed. It is likely that the FAW-VW stock ratio adjustment will continue. Deeds said that the stock ratio adjustment is mainly to optimize business management, which has nothing to do with the public's commitment to Chinese joint venture partners and strategic deployment. For specific markets, the public always hopes to find the most suitable model, so the restructuring of the stock ratio is mainly optimized from the perspective of management and finance.

Hejunjie, president of Changan Ford, who was interviewed by First Financial reporters, also said about the opening of Chinese auto stocks: "So far there has been no impact on us. Meiaiming, China's president under Ford, also said she respected Beijing's new policy and that the joint venture with Changan Automobile would be announced by the end of the year.

After all, no one wants to lose money on a joint venture that already exists. Professor Yinchengliang, Dean of the Automotive Engineering Research Institute of Shanghai Jiaotong University, analyzed the First Financial Reporter and said that in his opinion, the cautious attitude of the joint venture companies is understandable because the Chinese car market is huge and the external side is very important., and experienced early years of hand holding and years of grinding, The joint venture has adapted to each other, and foreign investment has also adapted to the Chinese market through joint venture companies. No one will have much objection to subsequent cooperation.

However, Yinchengliang also pointed out that the significance of the launch of the Chinese government's New Deal is to give new possibilities and give foreign parties the possibility of seeking greater interest.

In fact, although there is still a five-year period for the liberalization of the foreign capital of passenger vehicles, most passenger car companies currently have a joint venture contract expiration date of around 2030, that is, a 10-year period. Yinchengliang said: "In a contract period, maintaining the status quo, when the contract period is approaching, and the Chinese side to explore the change of stocks ratio, this possibility can not only exist, but will certainly appear. "

A game of technology and power

Tesla said on May 2, 2018 local time that plans to build factories for pure electric vehicles and batteries in China are making progress. It is said that the site of the factory will be announced in the near future. Some analysts believe that Tesla is seeking to be the first car giant to build a wholly-owned factory in China.

At Tesla's earnings call on May 2, CEO Elon Musk announced that the Chinese plant will be the second complete vehicle plant after the Fremont plant in California. Tesla has been discussing local production in China, which has become the world's largest pure electric vehicle market. Musk said at the conference: "I am very grateful to the Chinese government for announcing that it allows (foreign) to have full production facilities."

In this regard, Yinchengliang's judgment is that "Tesla will be solely owned by 100 %."

On the other hand, there will be the opposite situation with Tesla. With the increase in China's voice, foreign car companies are brewing more possibilities and looking forward to working with Chinese companies that are more familiar with the Chinese market to gain advantages in terms of channels in the Chinese market.

On the day before the Beijing Motor Show, Geely Automobile and Guangzhou Automobile Passenger Cars respectively signed a joint venture agreement with Aixin Seiji, a famous Japanese auto parts manufacturer, and announced the establishment of two new joint ventures to produce and sell FF6 automatic transmission. The registered capital of the two joint ventures is US$ 117 million. Aixin holds 60 % of the joint ventures. Each company plans to have 400,000 units per year and will start production by 2020.

Anconghui, president of Geely Automobile Group, said: "The establishment of a joint venture with Aixin AW Co., Ltd., a world-renowned transmission company, will help enhance Geely's R&D and manufacturing capabilities in the area of advanced power assemblies and accelerate the '2020 Strategy' and 'Blue Geely Action'. The advancement. In the future, the two sides will further explore broader cooperation in technology development and application and establish long-term strategic cooperation. "

On May 2, Ford Smart Outbound Co., Ltd. signed a memorandum of cooperation with Zhongtai Automobile Co., Ltd., formulating 50 % of each party's investment and forming a new joint venture company. The registered capital of the company is US$ 20 million. It is committed to providing electric vehicle rental services, data fleet management solutions, in-vehicle digital services, smart network connections, and vehicle customization services for network contract operators and network car drivers. The new joint venture company is located in Zhejiang and will take the lead in promoting the online car business in Zhejiang.

"The share ratio is by no means one-sided. It simply reduces the Chinese share ratio. For example, for some powerful Chinese car companies, in the context of new energy national policy support, industrial support and double points, these outstanding Chinese companies are likely to increase their share of shares and voice in the cooperation. Chinese companies now have their own advantages over foreign companies in new energy vehicles, mobile travel and smart networking.

The Chinese car market is gaining weight in the world. Represented by new energy vehicles, the United States sold nearly 200,000 new energy passenger vehicles in the world's top five new energy passenger vehicles (pure electric and plug-in hybrid) sales in 2017, an increase of 26 % year-on-year. Norwegian sales of 62,200 vehicles, an increase of more than 25 %; German sales were 53,600 vehicles, which doubled year-on-year; French sales rose to 36,000, up 26 per cent from a year earlier. The fastest growing country, new energy passenger car sales of about 556,000 vehicles, an increase of 69 % from a year ago, are far more than the other four countries, the market advantage is evident.

Taking new energy vehicles as an example, Shu pointed out that many Chinese car companies already have technological and manufacturing advantages in terms of new energy vehicles. In particular, battery companies equipped with new energy sources, such as Ningde Battery and BYD, have an important position in the international community. Car companies such as SAIC Group and Ningde Battery have in-depth cooperation, and SAIC itself has a lot of accumulation in the development of new energy vehicles. "Predictably, the future of openness and cooperation is not dependent on the foreign side, especially in the context of the decline in the influence of foreign brands, but more through the game of technology and strength. " said Shuchang.

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