The Ministry of Industry's recent release of the "2012 Annual Party and Government Organs of Public Service Vehicles Used Models Directory (Draft)" exclusively features domestic car brands. This move is expected to significantly stimulate the growth of homegrown automotive manufacturers. The directory's introduction is a clear indication of state support for local brands, which could lead to a surge in the development of dedicated automotive electronics and other related sectors.
The Ministry of Industry's 2012 vehicle procurement directory exclusively features domestic car brands, signaling strong state support for local manufacturers. This move is expected to boost the development of homegrown automotive electronics and related sectors. The policy could lead to increased R&D efforts and new product launches, particularly in high-end models. This article delves into the implications of this policy, the market's reaction, and the future of domestic car brands in China.
On February 24, the Ministry of Industry issued the "2012 Annual Party and Government Organs of Public Service Vehicles Used Models Directory (Draft)." Notably, all selected models are domestic car brands. This directory aims to further stimulate the development of local automotive manufacturers.
The introduction of this directory is expected to have a significant impact on the automotive electronics sector. Companies specializing in car DVD navigation systems and other dedicated automotive electronics are likely to see new development opportunities. According to a recent survey by HC Auto Electronics, more than 20 car DVD navigation manufacturers are gearing up to develop products tailored to domestic car models.
Domestic car manufacturers like Chery, Chang'an, and BYD, as well as joint ventures with brands like Toyota and Mazda, are expected to benefit from this policy. The focus will be on developing products that are compatible with both domestic and joint venture brands. This dual approach aims to capture a broader market share.
The market has reacted positively to the introduction of the procurement directory. The policy is expected to have a significant impact on market dynamics, particularly in the short term. Companies like Kai Oscillator are already preparing to adapt their product lines to meet the new demand.
Currently, the proportion of own-brand models to joint venture models is about 1:1. However, with the new policy, companies are expected to increase their focus on developing own-brand models. This shift is likely to result in more investment in R&D for domestic car brands.
The speed of product development for own-brand cars is expected to be faster compared to joint venture brands. This is primarily due to the complexities involved in integrating original car CAN bus technology and data protocols in joint venture models. Companies like Car Airlines and Health are planning to launch new products for own-brand cars within 15 days of stable R&D programs.
Newman, a key player in the automotive electronics sector, is focusing on developing high-end models for domestic cars. The company aims to cover both high-end and partial high-end models, ensuring a comprehensive product range that meets consumer demands.
The introduction of the 2012 vehicle procurement directory is a significant step towards boosting the development of domestic car brands in China. The policy is expected to lead to increased R&D efforts, faster product development, and a broader range of high-end models. This move not only supports local manufacturers but also enhances the overall competitiveness of the Chinese automotive industry.
By focusing on these areas, the Chinese automotive industry is poised for significant growth and increased global competitiveness.
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