Research On Chinese Automobile Industry’s Main Problems And Countermeasures

The automobile industry is a pillar industry in our national economy, it is an industry that is labor concentration, capital concentration, and technical concentration, and it has great association degree, placing a decisive effect in our national economy. After China joins WTO, as opening degree is intensifying, the Chinese automobile market will become one part of the automobile market of the world. The automobile industry will face more intense competition. However, because the development of China automobile industry is behind many strong countries, has a weak foundation and lacks primary technique, the level of our automobile industry development is far behind powerful country of the automobile, such as American, Japan and Korea. The Chinese automobile industry has many problem, such as low concentration degree, low economic scale, low productivity ratios and specialized levels, R&D ability weak, and lacking own brand, which seriously hinder the rapid expansion of our automobile industry. Therefore, how to resolve these problems in order to make our automobile industry enough strong to resist the shock of the world automobile transnational company, and make China become "auto powerful country" instead of "auto great country", which is the greatest subject the Chinese automobile industry faces.Based on this, this paper first using the model of SCP (Structure-Conduct-Performance) on the status of China’s automobile industry is analyzed. According to the analysis of the current situation of our automobile industry, we found the existence of the automobile industry, such as low market concentration, low economic scale, low product differentiation and lacking own brand, low R&D and innovation ability, short of government’s sound policy support. These problems directly affect international market competitiveness of China’s automobile industry and sound development and utilization of domestic automobile industry development. Secondly, by analyzing the develop course of the United States and Japan, studying the advanced experience, also combing with China’s actual situation and directing at the problems, this paper proposes the corresponding policy recommendations:eliminate the local protectionism to construct a whole country’s unified market, mainly restructuring the automobile manufactures of the single ownership capital structure into the multi-elemental capital structure by many ways, and reforming the property rights of enterprises to destroy the regional and departmental blockades; carry out the pattern system of certification, setting up a just and authoritative third-party certification organization; establish reasonable exit mechanism, mainly perfecting various insurance system, establishing sound capital market system, sounding various laws and regulations of the market exit; perfect the mechanism of technology development of our automobile industry, government should establish the cooperative model about enterprises, universities and development leading by enterprises, enterprises should establish own research and development system and scientific research center; perfect the guarantee system of technology development, mainly increasing capital investment in the technology development, strengthening the effort to introducing and cultivating talents; found own national brand, mainly inspiring the large automobile enterprises to implement brand strategy, encouraging and supporting enterprises to establish own brands; accelerate automobile industry to merger and recombination, mainly perfect the policy of recombination, promoting merger to integrate our automobile industry, recombining assets to cultivate the core competitiveness of our automobile enterprises.Innovation of this paper is to use the more popular abroad SCP method to analyze the situation of our automobile industry, which is mainly based on quantitative and qualitative research to analyze, in order to make a thorough inquiry of the problems in the development of our automobile industry. Moreover, in order to make an objectives assessment of the market performance, this paper construct an evaluation index system of the market performance of the automobile industry, following the principle of systematic, multi-layered, comparative, feasibility, combination of quantitative and qualitative way of analysis, and make a comparison with the America. Finally, by studying the advanced experience of the developed countries, and directing at the problems in the development of our automobile industry, this paper put forward constructive recommendations corresponding with our national conditions.Empirical Analysis and relevant policy recommendations will be in future research.