Do not demonize private auto companies to find opportunities for survival


A few pictures of the Lifan 520 rollover shot eight months ago were put on the Internet after the car was put on the market and it was really unpleasant for Yinfanshan, the head of Lifan. Although Lifan issued an investigation report citing the accidents in the traffic police department of Hainan Province, the scenes of “only speeds of 160 km/h” and “less than one year of driving” of the driver “only scratched hands” proved the accident and Lifan. 520 quality reliability does not have much to do with it, but the public’s trust in private companies is still shaken; at the same time, the online discussion about the credibility of independent brands’ quality has caused some people’s mistrust of their own brands to intensify. Nationalist sentiment was immediately replaced by the demonized mood of its own brand.


"With no trust, companies will be paralysed. The development of private enterprises will experience many hardships. We also need more support, tolerance and encouragement from the general public." Yin Mingshan, an elderly person who has entered the age of ancient people, is being interviewed. At the time, the frustration still lingers on words. Yin Mingshan’s greatest fear is not the days of suffering and Other permits, not the slander of some unreasonable people, but the lack of understanding of private companies’ own brands. Yin Mingshan himself also admitted that 70% of the people in the industry are not optimistic about Lifan cars. The exposure of this rollover event has deepened people's doubts about the future development of Lifan. Therefore, in response to this incident, Yin Mingshan proposed a “private setup” and hoped to conduct comparative experiments on the collision safety of vehicles in the same model. “We think we have technical problems and we use the technology to answer.”

This promise demonstrates to some extent that Yin Mingshan’s attitude of being unfollowed by this has caused people to be surprised and feel sad at the same time. Compared to Yin Mingshan's 68-year-old senior citizen, Lifan 520 is still suffering from many hardships, and it is even more worrying about the living conditions of Chinese private enterprises.

The vow to make Lifan's determination to make a comeback makes people deepen their favor for Yin Mingshan. The phrase “creating a hundred years of Lifan” sounded rather foolish, although in some people's eyes, Yin Mingshan looked stubborn and ridiculous. Others may have enjoyed the joy of family life at this age. The old man is still busy with his own brand that has not been supported by China for 20 years.

Yin Mingshan is very clear that the 20-year joint venture in the auto industry has made China's lands full of foreign brands. Most of the world's famous brands have settled in China, and consumers have become accustomed to it. In contrast, when an independent brand was born, it was the role of the plagiarist and imitator. People viewed their own brand with colored glasses. In this reality, as long as there is a slight problem in independent brands, people will become intolerable. In the automobile manufacturing field, the Chinese people's less determined national pride will often be shaken because their own brands are not very competitive.

Chinese consumers have seen the world now. Unlike five or six years ago, there was a rush of low-priced cars. If consumers were blind to the pursuit of price a few years ago, giving private companies a chance to grow and develop, after so many years of cultivation, the rational consumption consciousness of consumers will gradually mature, and the newly-entered private enterprises will not be so good. Shipped.

In the eyes of Yin Mingshan, domestic auto companies have three development models: First, the current joint venture model is widely conducted, but the problem is that the joint venture did not leave any technology and brand accumulation for domestic cars; the second is Autonomous model of building as represented by Geely, At the beginning of the venture, most of the components were domestically produced, “their direction is correct, but the roads are twisted”; the third is Lifan’s development path that is ready to go, insisting on independent intellectual property rights and national brands, and at the same time realizing open doors and vehicles, making full use of global technology and Talent.

In fact, the biggest difference between Lifan and Geely is definitely not the difference between opening a car and closing a car. When Yin Mingshan tried to draw a line with Geely boss Li Shufu, did he realize that Lifan’s current situation is much more difficult than that of Geely? Yin Mingshan believes that when Lifan “debuted”, the overall environment was much better, and the state’s support for independent innovation by enterprises was very strong. It was easier for Lifan to get a permit than they were then. But did he think that after the private enterprises represented by Geely pulled down the overall price of Chinese cars, people had formed a misunderstanding on their own brands. In many consumers' minds, self-owned brands mean cheap, which is the advantage of Chinese private enterprises over the years, but it may also be the biggest obstacle to their forward development.

Yin Mingshan admits that as an economical sedan, the price of the 77,777 yuan Lifan 520 is indeed a bit high. It is a private enterprise and an independent brand. This kind of price cannot be tolerated by many people. Yin Mingshan's theory of "car sales" has not been implemented on his own products. Consumers have also complained about this. Although after the investigation of the rollover incident, we can roughly draw a Lifan 520 crash-resistant, skinny conclusion, but we also have to admit that many consumers can turn a blind eye to a cheap car of average quality, but Can not tolerate the high quality of the car is not cheap, especially this matter still occurs in private enterprises.

Not only Lifan, but also Geely, the private enterprise that entered the top 10 Chinese car sales for four years in a row, faced with such a dilemma: In addition to price, it did not really establish a unique image, with the joint venture brand. The car began to save costs more rationally, and formulated some price strategies for private enterprises. Its weakness is becoming increasingly prominent. Although profit is gradually declining, the space for production costs to tap potential is very limited. Geely, who has always been shown in the form of “price butcher”, has to insist on his long-term low-price strategy and his competitors—the joint ventures. The cost gap with it is getting smaller and smaller. Although Li Shufu said that Geely has reached the stage of transitioning from “a car that the people can afford” to “a good car that the people can afford”, letting the people realize that the latter point is obviously more difficult than knowing the former point.

Although private enterprises have a promotional point of “self-reliance, self-reliance, and self-reliance,” the “threshold of trust” in the minds of consumers is not so easy to leap. Compared with wealthy joint ventures, it is easy for people to link issues such as “low manufacturing capacity, insufficient technical strength, and internal management confusion” with private enterprises. And a lack of honest Oaks, also cast a huge stain on the private enterprises in China. In order to change people's intrinsic impression in a short period of time, I fear that China's private enterprises will need to do more together.

Li Shufu said it well: “The core technology is to use money to buy, unless you go for a merger with a company that has core technology. Once you have merged it, the technicians may have run away, and the core technology is not necessarily you". He believes that private enterprises have no money for joint ventures, and no money for mergers with other companies, but they know that they can firmly control their own technological property rights in their own hands, because only by expanding their own brands can they survive in a hostile environment. Opportunity.

Our reporter Wang Chao



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