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Chinese auto brands should have performed well in exports

Source: | date: Nov. 4

  • China's auto sales have stayed20 million units on an annual basis. For the first nine months of 2015, the automobile sales exceeded 17 million units with only 560,000 units exported to overseas markets. The exported vehicles accounted for less than 3% of the combined auto sales in this country.

  • However, Chinese auto firms should have performed well in the vehicle export sector, as they have opportunities to learn from almost all auto giants to improve their corporate management throughout the automobile industry chain. Nowadays, almost all world-famous auto brands have established joint ventures in this country.

  • In fact, in vehicle exporting business, Chinese joint ventures not only failed to perform as well as expected, but also were overshadowed by indigenous brands operated by private companies. This in part because indigenous brands have a more flexible decision-making mechanism than joint ventures, most of which are backed by government.

  • In order to boost vehicle exports, joint ventures should step up efforts to improve the flexibility in their decision-making systems and replicate their advanced management in overseas manufacturing plants to ensure product quality. Furthermore, they should try to avoid vicious competition as much as they can.