Automobile companies should pay attention to policies and regulations to improve the competitiveness of enterprises


The new "Regulations on Mandatory End-of-Motion Standards for Motor Vehicles" is being revised and is expected to be introduced in the near future.

In the process of studying the new regulations, relevant departments responsible for the formulation issued questionnaires to some automobile manufacturers and logistics and transportation units, and also organized related conferences for discussion. To the astonishment of the organizers, companies participating in surveys and meetings were indifferent to this reaction. It seems that this matter has nothing to do with them.

"The sensitivity of manufacturers to national policies and regulations is too low and too short-sighted," said one organizer. He believes that companies that are too short-sighted cannot form long-term competitiveness.

I. Ignoring long-term effects

At first glance, the new mandatory scrapping standards do not seem to have much to do with manufacturers.

However, according to expert analysis, in the short term, the impact of the new regulations on auto companies is not significant, and from a long-term perspective, its impact on the industry is direct and profound.

The reason is that the new regulations have eliminated mandatory regulations for scrapped mileage and weakened the useful life, thereby prolonging the life cycle of vehicles and slowing the speed of updates. In this situation, the same social demand will make the product market relatively small.

This will lead to more fierce competition in the industry. Consumers will also tend to choose vehicles with advanced technology, durability, and higher value-added products from the perspective of cost. Those companies that cannot adapt to market changes in a timely manner and cannot rapidly upgrade their technology will be ruthlessly eliminated.

Most automobile manufacturers' understanding of this regulation is still limited to affecting the used car market. Few people associate the used car market with the existing market. They believe that since it is a regulation that affects the used car market, it has nothing to do with the new car market.

With regards to the service life of products, companies are obsessed with it. Just emphasize that if the product has problems during the warranty period, they will be responsible according to the relevant regulations of the country.

Experts involved in formulating new regulations told the author that most domestic manufacturers did not actually consider the service life of the product at all.

Large foreign companies will consider the product's service life from the design and development of new products to the production and sales cycle, because the life of vehicles is closely related to the cost of use of consumers. Its common practice is to follow up the investigation and keep track of a certain number of sold products until they are all scrapped, and then calculate the average service life of the products according to the relevant formula.

According to the analysis, although the market is a gradual process, if companies do not pay enough attention and do not make early preparations, they will be caught off guard, and they will gradually lose their competitive advantage in a gradual market.

Second, ignore the policies and regulations

Because of the insensitivity to policies and regulations that led to unprepared stories, it has been performed several times in the domestic automobile industry.

There was a time when imported car licenses were the "sweet scent" of the auto industry's mad rush. They could not buy high prices. In the period before the "Automatic Import Licensing Issuance Management" was issued, even if the departments concerned issued three orders and five applications, some people still disapproved and used it as hoard goods.

As a result, a paper regulation was introduced and the import vehicle permit system was completely abolished. Many car dealers have spent a high-priced permit on a piece of waste paper and suffered heavy losses.

When Alto, a small-displacement car with a very popular market, announced its withdrawal from Beijing, many consumers were unable to understand it. If they know that strict car emission standards will block this car outside the gates of Beijing, it is certain that people will question this question: Why did the manufacturers not prepare early?

Similarly, recently, the national "double collision" standard implementation, which does not meet the national mandatory collision standards, will no longer be included in the NDRC's Automotive Products Announcement Catalogue. Many manufacturers stated that this change has come too quickly and suddenly, and companies are simply not ready. According to relevant sources of the China Automotive Technology and Research Center, about 20% of vehicles in China are difficult to pass the "double touch" standard test.

The author has made rough statistics. Since 2003, China has issued about a dozen major policies and regulations for the automotive industry. Almost every time it was implemented, some companies were overwhelmed by lack of preparation, and some even suffered heavy losses. Companies that have to withdraw from the market due to their inability to respond to new policies in a timely manner are not unique.

According to reports, before each policy was introduced, the government departments left sufficient preparation time for the company, and sometimes even pushed back the implementation date to take care of some companies.

Even so, after some regulations and standards were introduced, some manufacturers still turned a deaf ear to make the national standards useless. For example, in GB 7258, compulsory bus companies are required to deploy ABS. It is understood that some bus manufacturers are trying to save costs, or this rule is not enforced at all, or the shortcut is greatly reduced.

Third, we should establish a long-term development concept

A consultant from Europe told the author about his own feelings. He believes that the short-sighted phenomenon of China's auto companies is too common, and some of the behaviors they make sometimes seem bizarre. For example, in order to cope with international procurement, some companies actually deal with other manufacturers' products.

The expert said that if this situation does not change in the short term, the international competitiveness of China's auto industry will seriously decline.

Recently, the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China (AQSIQ) issued a document requesting the various geological inspection departments to specifically examine the implementation of the recall system for automotive products. This shows that the recall situation of Chinese cars is not optimistic. Once this issue is identified, it is possible that the first domestic automobile manufacturer that has been forced to recall will be born.

According to reports, some companies do not understand the seriousness of the state’s policies and regulations, but sometimes they do not know the strength of their own. Some companies are only coveting immediate interests, seizing the hot market to earn a handful, have no intention or intent to study these policies and regulations, or adjust their product ideas and management strategies.

They did not realize that some seemingly ordinary rules not only affect the immediate market, but also have a long-term and profound impact on corporate technology, management, and development strategies. Once the company is not fully prepared, it may lose market opportunities or even suffer major losses because of inadequate response measures.



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