Car Subsidy Program For Rural Areas And The Development Of Own Brand Cars

The development of Chinese own brand cars is always the focus of people's attention. The past 30 years since the reform and opening-up have witnessed China's great changes, and we have created a rapid economic development which is called"economic miracle". However, great economy does not produce great enterprises. With the entrance of foreign cars into Chinese market, the market share of our own brand cars has decreased year by year.One reason of this phenomenon is the lack of right understanding of market economy for our own brand cars. Market economy is the most advanced economic form of the human society. The basic reason lies in that market economy is competitive economy. Influenced by the thinking pattern of planned economy for a long time, our own brand cars lack the accumulation and improvement of independent creative ability, and thus in the competition with foreign brand cars are always in an unfavorable condition.In January 2009, in response to the negative impact of U.S. financial crisis on China's automobile industry, China's government issued"The automobile industry restructuring and revitalization plan."In the same year in March, the government issued"Car Subsidy Program for Rural Areas". It is the first policy which clearly encourages individuals to buy cars."Car Subsidy Program for Rural Areas"has achieved great results. In 2009, China's own brand car sales and market share have been increased significantly. Each economic phenomenon has its logic. Since the reform and opening-up, the rapid improvement of rural economy in China is the basic reason of the success of Car Subsidy Program for Rural Areas. For a long time,"poor and slow"is always the impression the rural areas leave on people. However, after the reform and opening-up, rural economy is becoming prosperous. The need of rural market for consumption goods is in a constant increase. Nowadays, rural market, as the urban market, has become an important motive force for the rapid development of Chinese economy.From a planned economy to a market economy, from the catch-up strategy to exploiting the comparative advantages, each progress in Chinese economic development is the result of emancipating the mind. At present, China's own brand cars is in a critical period of development and growth. Own brand cars should use the Car Subsidy Program for Rural Areas as an opportunity, to further emancipate the mind, and re-examine the business development strategy.The thesis analyzes the relationship between the policy and the future development of own brand cars in a dialectical way, and draws the conclusion that the success of Car Subsidy Program for Rural Areas is necessary. The rural market not only has great need potential, but also it is conducive for own brand cars to develop comparative advantage and realize a catch-up. Car Subsidy Program for Rural Areas is bound to have an important influence on the future development of Chinese own brand cars.