Guangzhou Auto Industry Takes Shape to Build Core Competitiveness


“Without Guangzhou Honda, there is no Guangzhou Motor City today.” Zeng Qinghong, Vice Chairman and General Manager of GAC Group. This native-born native has become the most appropriate witness in the history of Guangzhou's automobile development. No one had thought before that the car factory that was once noisy and weak and was on the brink of collapse actually produced a hot car, which has been in short supply for several years. Moreover, Guangzhou Honda has become Honda’s most profitable subsidiary in the world.

The success of Guangzhou Honda has driven the industrial process in the entire city. Since then, the FENGSUN Bluebird unexpectedly came, and Toyota also extended an "Olive branch" to Guangzhou. The big pattern of the Guangzhou automobile industry has taken shape: the east is Guangzhou and Honda cooperation, the north is the cooperation between Dongfeng and Nissan, and the south is Guangzhou and Toyota cooperation. Around these automobile giant joint venture factories are several large-scale auto parts supporting bases including Guangzhou Economic and Technological Development Zone, Guangzhou Huadu, and Zengcheng Yonghe. A Guangzhou auto industrial cluster with Guangzhou Automobile Group as its core is rapidly emerging.

On June 28 of this year, just one week after the swift marriage of Korea Modern, GAC Group Co., Ltd., which has been operating for three years, was formally established. The Guangzhou Auto Group, which has always been low-key, was uncharacteristically and even burned two fires to become the most prolific role in the industry. Previously, Guangzhou Automobile Group and South Korea Hyundai reached an agreement on the production of commercial vehicles: GAC and Hyundai invested 50% each, and established a new Guangzhou Hyundai Commercial Vehicle Base in Huadu, Guangzhou. The first phase of investment was 430 million US dollars, and production in 2007 was to 2011. Annual output reached 200,000 vehicles, with a total investment of 1.24 billion US dollars.

People in the industry believe that the launch of the Guangzhou Modern Commercial Vehicle Project will allow GAC to complete the layout of the car field and will be more perfect in the product line. GAC will use this to fill the gaps in heavy-duty models and revitalize the commercial vehicle business. At this point, the development of GAC has been relatively mature: the car segment consisting mainly of Guangzhou Honda and Guangzhou Toyota; the commercial vehicle segment dominated by Guangzhou Automobile Modern; the passenger car segment dominated by Guangzhou Denway and Guangzhou Isuzu; Guangzhou's parts and components, light trucks, motorcycles and service trade. "Guangzhou Honda must achieve a production capacity of 300,000 units. Clustering benefits will be generated by nearby supporting companies. From this perspective, the scale of GAC will definitely promote the development of the Guangzhou automobile industry cluster." Zeng Qinghong said that with the scale of the automotive industry, With the increase, the benefits of industrial clusters will be more clearly reflected. It is reported that GAC Group, especially Guangzhou Honda, has become one of the most competitive car companies in China and has attracted a group of internationally renowned parts suppliers, mainly Japanese companies investing in Guangdong. According to incomplete statistics, only the Guangzhou Economic and Technological Development Zone has nearly 40 parts and components manufacturers, with an investment of more than US$500 million.

According to the "Guangdong Provincial Industry Development Plan for Nine Major Industries (2005-2010)" issued by the Guangdong Provincial Government, it is expected that in 2005, the automobile production capacity in Guangdong Province will reach 650,000; by 2010, the total output value of the province's automobile industry will reach 3,600. 100 million yuan, an average annual increase of 25%; Guangdong's auto production capacity reached 1.6 million, the car's domestic market share of more than 15%, automotive exports accounted for more than 10% of the total.

Behind the ambitious, there is a strong support of technology and sales, but also has a legend of "sparrows become phoenix". From the very beginning, "less input, faster output, and rolling development" have become the keynote of Guangzhou Honda's development. On the basis of the transformation of the original factory building, Guangzhou Honda took only 9 months to form an annual production capacity of 30,000 vehicles; in 2001, Guangzhou Honda achieved an annual production of 50,000 vehicles in 4 years. Capability; In February of this year, the annual production capacity of 240,000 units of the plant has also been advanced.

Corresponding to the expansion of production capacity, Guangzhou Honda's all-pervading sales performance. With only Accor, Fit and Odyssey products, in October, Guangzhou Honda sold 16,936 vehicles, which accounted for 7.6% of the passenger vehicle market in the month; from January to October this year, its cumulative sales reached 189,000, an increase of 22.3% over the same period of last year. The total sales rank fifth in the industry.

The success of Guangzhou Honda was once known as the "Accord Mythology" and directly prompted Toyota Motor and Dongfeng Nissan to settle in Guangzhou. At the Guangzhou Auto Show, the Japanese companies settled in Guangzhou showed an amazing momentum of development. The new models of 06 Accord, GAC Toyota New Camry, Nissan Teana, Tiida, and Tiida will all impact the Chinese auto market next year.

According to the general manager of Toyota (China) Rocky Rock, the new Camry has officially changed its name to Camry. "The new generation Camry will start sales in 2006 and it is scheduled to produce 100,000 units a year. At present, the construction of a new factory has started." According to Jiji Peiji, Guangzhou Automobile Engine Company, which produces the Camry engine, has an annual production capacity of 300,000 units. It is Toyota's first engine export base in China. Obviously, Toyota wants to strengthen its strategic position in the Pearl River Delta, GAC Toyota is undoubtedly a big bet.

For Nissan, Guangzhou is a blessed land. In 2001, Fengshen Automobile Co., Ltd. moved to Huadu and began direct investment and construction of Dongfeng in Guangzhou. In June of last year, Dongfeng Motor Co., Ltd., a company with a total investment of 8.35 billion yuan, was formally established by Dongfeng and Nissan. The cooperation period was 50 years, and the planned production capacity reached 380,000.

Although the road to the start was somewhat twisted, Dongfeng Nissan quickly won the "double harvest" of the company. The introduction of Scorpio, Tiida and Tiida brought Dongfeng Nissan into the fast lane. In the first ten months of this year, compared with the same period of last year, its sales performance increased by 169%, again creating a miracle in the Chinese auto industry.

At the same time, around the three major vehicle companies in Japan, Hitachi, Japan, Denso, Tiens, Stanley and other well-known Japanese auto parts companies have also invested in factories in Guangzhou, auto parts industry has become a foreign Investment hotspots. Lin Yuanhe, executive deputy mayor of Guangzhou, said: "Guangzhou has a good industrial base, talents, investment environment, three major development advantages, the main parts of automobile parts must be in Guangzhou."

On the other hand, as the center of economy, culture, science and technology, and information in South China, Guangzhou, the center and the regional radiation are the key to Guangzhou becoming the automobile center in South China. Its economic radiation capabilities include the Pearl River Delta region, the southeast coastal areas, Hong Kong and Macao regions and Southeast Asia. These radiation areas are all areas where foreign-funded enterprises in China are most concentrated, have the most developed economy, have the highest living standards, and have the strongest purchasing power. This also determines that Guangzhou will become an important supplier base for international commercial vehicle bases and global parts.

Zhang Fangyou, chairman of GAC Group, told the reporter that the current number of cars in Guangdong Province ranks first in the country, and that of the Pearl River Delta region accounts for 1/3 of the country’s total sales. “With the rapid rise of the auto industry, Guangdong has become the largest automotive production base in South China, which has laid a good foundation for the development of the Guangzhou auto industry cluster.” He believes that the mechanism of industrial clusters is obtained through geographical proximity. , and promote the efficiency of division of labor, reduce the high costs due to frequent transactions and long-distance transport. Because industrial clusters have obvious industrial advantages, such as helping to increase the degree of specialization, reduce costs, and help promote the extension of the industrial chain, increase the ripple effect and scale effect of the industry, enhance competitiveness, and establish regional brands of industrial clusters. In most of the countries, the automotive industry is accelerating through the way of industrial clusters.

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