A Study On The Innovation Ability Promotion Strategy Of Chinese Self-own Brand Automobile Enterprises

With the rapid development of technology and economy, the China’s auto manufacturing industry is no longer characterized as a traditional labor-intensive industry. The industrial advances place greater demands on technology input and capital investment. Given the fact that capital investment is not a key bottleneck for auto industry in China nowadays, the only road towards and crucial process of having an advanced auto manufacturing industry in China is to enhance innovation ability, create more self-owned brands, and upgrade from a manufacturer of quantity to one of quality. Although self-owned auto brands, such as Chery and Great Wall, have made remarkable achievements in scaling up and expanding both domestic and international markets, the development of China’s self-owned auto enterprises still faces problems such as low level of core technology, lack of independent innovation capability, lack of sophisticated R&D human resources, low conversion rate from policy incentives to industrial development. Therefore, these auto brands find it difficult to get rid of the impression of "low quality with low cost" in customer’s mind. Even worse, they are confronted with a risk of being marginalized in market. The fierce competition and risky situation forces China’s auto enterprises to quickly find ways to break the deadlock and survive. It is imperative for them to increase R&D investment, team up R&D talents, make significant progress in key parts relating to engine and safety, and upgrade innovation ability.Based on the above observations, the author analyzed internal and external environment of China’s auto manufacturing industry, and pointed out external reasons for the lack of innovation capability in China’s self-owned auto brands, as well as the reasons from internal institutional mechanisms. On this basis, the author further puts forward the "government-enterprise" "two-wheel driven" strategy and tactics to promote innovation ability of our self-owned brand auto enterprise, by learning lessons and experiences from their counterparts in America, Japan, South Korea and Germany.