What is the result of joint venture autonomy?

The Tianjin International Automobile Forum held in succession and the Chengdu Global Automotive Forum focused on independent innovation. The Qichen R50 coincided with the low price at this time. The three companies “jointly” pushed the joint venture's own brand (hereinafter referred to as “joint autonomy”) to the cusp. At present, there are many disputes over the autonomy of joint ventures. The topics are mainly focused on the background of the joint venture brand, which has a comparative advantage in terms of brand influence, cost control, sales channels, etc., and the models themselves are mostly products of older models changing the model and brand. It is far from innovation and at the same time it squeezes the living space of independent brands.

It is undeniable that a joint venture takes a shortcut, and companies do not have to spend huge sums of money to engage in research and development. Channel development can rely on joint-venture brands, and the brand image enjoys the premium of a joint venture brand. Parts procurement has scale advantages, and it is natural enough to be close to the people in terms of price. In the joint venture's main market of less than 100,000 yuan, the price is still the dominant factor in the purchase. The Qichen R50 has a minimum selling price of less than 70,000 yuan. According to statistics from the Federation of Travel Unions, in August, Qichen D50 sold 3,378 units, sold 1098 units for the joint-venture name market, and sold 1702 ideas S1 and Siming 1,435 units. Although the sales of the “old car” could not be considered satisfactory Kega, but still acceptable, after all, are still in the new brand development period.

In contrast, the sales of passenger cars in the first seven months of the year increased by 1.2% year-on-year, which was lower than the overall 6.4% growth of passenger cars. The market share was 40.8%, a year-on-year decrease of 2.6%. It can be seen that the self-owned brand is currently living very hard. If the joint venture becomes a climate, it is inferred from the status quo that the self-owned brand will become more and more difficult.

Of course, while the joint venture exerts its own pressure, it sets an example for its own brands in terms of cost control and so on. Although the joint venture has the advantages of scale procurement and the like, it can cut costs, but how to control costs and quality is still worth learning from independent brands. According to reports, at the beginning of the brand's creation, Qichen let the component suppliers participate in R&D and manufacturing. The two parties' demands and the bottom line can be well combined. Although this is a microscopic detail, it can provide an idea for the independent brand car companies. There are many problems with self-owned brand models, but the quality and reliability are the most criticized, and the purchase price has a decisive role. In fact, this is a matter of balance between cost and quality. How to balance the relationship between the two parties, how to adopt them, how to select parts and components dealers, and how to maintain consistency are all worth learning for some auto makers.

In terms of branding, some reports had earlier reported that some Dongfeng Honda dealerships replaced Siming's LOGO with Civic, which reflects consumer recognition and favor for joint venture brands. The joint venture with the joint venture brand's halo is still self-contained, and the situation of independent brands can be imagined. Raising brand affinity, influence and recognition is the top priority of independent brands, but there is no experience to follow; while joint venture auto companies must develop their joint ventures to increase their gold content, how to develop medium and low-end brands in China's market environment, The joint-venture car company is also a brand-new topic, and its development experience in different markets will help it. This is something that independent brands cannot match. It is also this point, independent brands can be as tigers and cats, not necessarily copied, but how to learn a few tricks, Gabriel without harm.

While the initial success of the joint venture has achieved initial success, we can see that some manufacturers are very motivated and have achieved good results in sales; some manufacturers are perfunctory and the market effect is general. This is also a matter of caution for independent brands, whether it is for a brand, a car, or a design. Yin Fanshan, chairman of Lifan, once said, “Making a car is a marathon. It is not relying on small smarts to seek development. The long-term plan is to establish a sound system to promote brand growth.”

The dispute over the joint venture's autonomy will continue, but the autonomy of the joint venture has become a reality. Independent brands can only bravely face and complain that it will not help.