Strategic Analysis Of China Automobile Enterprise Export

Internationalization of automobile industry is consistent with the economicglobalization. Since the new century, China’s auto production and marketing haveexpanded rapidly, at the same time, export quantity and amount are also growing,showing much new situation and new features, but compared with the automotiveworld powers, China’s car exports still face many problems, we still have a large gap.For automobile enterprise, auto export itself is a complex process, involvinginternational trade, international marketing, business management, and many othertheories, tactics and methods.After sixty years’ development, China has been the biggest consumer market forautomobiles, while our industry technical level is still weak, and the market aredivided up, the share for passenger vehicles of self-owned brand is low, less than halfof the home market. Although auto exports have increased quickly with optimizedvehicle type, compared with domestic sales, China’s auto export volume is still small,the share of export is not only lower than some developed countries such as Germany,Japan, South Korea and United States, even lower than Brazil, India which are alsodeveloping countries, and normally the auto exported are self-owned brands which areat a lower level, the main body of exports are from the independent car companiessuch as Chery, Geely, Great Wall Motor. Facing fierce competition from domesticenvironment and complex international environment, the cars of China don’t haveobvious comparative advantage, the share of international market is low, prices ofimported automobiles are far higher than prices of exported automobiles, in a word,auto competitiveness of China’s exports is quite weak. China’s car exports have manyproblems, such as excess export enterprises, disordered competitive situation, lack oftechnology, poor quality, short of after-sales service, small brand influence.Our automobile enterprises have accumulated a lot of successful experience andfailure lessons after entering international market, a lot of strategy can be summed up in the end. Market, which is concerned with geographical distribution, economicdevelopment, national potential and several other factors, can be subdivided into sixareas, they are Southeast Asia-South Asia, Middle East-North Africa, Sub-SaharanAfrica, CIS countries-Central Asia, Latin America, the European Union-NorthAmerica-Oceania. When selecting the targets, the advantages of the free trade areasshould be made good use of, countries located in free trade areas could be chosen asthe target markets, meanwhile we should know the vehicle certification, emissionsstandards, tariff and other policies in the target market. When exporting cars, there arecomplete vehicle export form and components assembly export form, each haveadvantages and disadvantages, auto companies should mainly consider the marketscale and tariff policy, at present our automobile enterprise have built a large numberof overseas parts assembly plants. While choosing auto for exporting, we need tomake a deep analysis of the market and choose the competitive product. When pricingfor export cars, price of competitive products must be considered except for costs anddemand, in general, our car price is lower than similar products from Japan, SouthKorea in order to gain competitiveness. Car companies should also actively useadvertising, marketing, and other forms to promote.Based in Hebei Province, Great Wall Motor Co., Ltd is a private enterprisewhose main products are pickup trucks and Sports Utility Vehicles. It has achievedvery good effects and results in auto exports via expanding the international marketscale, optimizing the product structure, precise market segmentation, reasonable pricestrategy, promotion strategy and brand influence.After theory analysis and case study of strategy of China automobile enterprise,to solve the problems of China’s car exports, I come to several responses to improvethe level of vehicle exports: government and industry association should manageorder of exports efficiently and support automobile enterprise actively, car companiesneed to make a long-term strategic plan to develop overseas business and make fulluse of international marketing to strengthen the brand building.