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explosion of homegrown brands in the Chinese auto industry in the five years since
the country entered the World Trade Organization has made a mockery of worries
expressed in 2001 that international competition would harm the fledgling local
auto industry when the country cut customs duties and opened up its domestic market.
On Beijing Inte'l Auto Show, according to the organizers, homegrown brands
account for one third of the 572 vehicles on display, the biggest share in the
history of the biennial event.
Zhu Yanfeng, FAW general manager, said
his company will sell two million vehicles in 2010, half of which will be homegrown
brands, worth a total of 200 billio n yuan (25 billion U.S. dollars).
The
state-owned auto giant plans to transform itself from a loss-making enterprise
into a competitive one, with priority given to developing homegrown brands and
earning profit, said Zhu.
An advanced automotive engineering center
will be built to facilitate the development of homegrown brands. Asked whether
domestic automakers can compete with multinational giants, some domestic manufacturers
said that "we often underestimate ourselves, while foreign counterparts have
a clearer view".
Homegrown brands are "a beautiful butterfly
that is struggling free of its ugly chrysalid", said Chen Guangzu, an expert
with the China Automotive Industry Consultative Committee.
The year 2006
saw Chinese homegrown brands reach a new level of sophistication -- besides improving
product quality and exterior design, they are now developing their own engines.
Chinese automakers have the bit between their teeth and will become rivals
of their counterparts in the United States, Japan and Germany in the near future,
said analysts, quoted by the Shanghai Securities News.
A roadways plan
devised by the Ministry of Communications will more than double the existing expressway
network, bringing it to 85,000 kilometers within 30 years. The roads are needed
to accommodate the growing number of auto vehicles and to support economic growth.
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