Dongfeng University’s own strategy, the new engine of the local automobile industry


Recently, a statistical data from the Hubei Automobile Industry Association shows that at present, the automobile industry has become the first pillar industry in Hubei Province, and more than 95% of automobile production and sales come from Dongfeng; in Wuhan, the automobile industry has become the city's economy. The biggest highlight is to help Wuhan's automobile production capacity reach one million mark. This has led to billions of output value. The annual output value will exceed 200 billion yuan and become the first industry in the city to have exceeded 200 billion yuan.

In Shifeng City, Dongfeng’s hometown, in the first half of the year, the total industrial output value of Dongfeng Motor Co., Ltd. (Shiyan District) increased by 24% year-on-year, that of Dongfeng Group Co., Ltd. (headquarters) increased by 42%, that of Dongfeng Industry Co., Ltd. increased by 16%, and that of Dongfeng Commercial Vehicles increased year-on-year. 6%. With the strong support of Dongfeng Commercial Vehicles, the Shiyan automobile industry has made a lot of efforts. In the first half of the year, it achieved a total industrial output value of 58.7 billion yuan, an increase of 24% year-on-year.

Under the framework of the self-determination strategy, Dongfeng is making every effort to achieve the target of 3 million cars of self-owned brands in 2016, which has become a new engine for stimulating the local automobile industry and has effectively stimulated the rapid development of the regional industrial economy.

Dongfeng University’s own strategy to give power

At the end of 2011, Dongfeng released its own plan for self-employment and formulated a challenging independent business goal for the next five years (2012 - 2016).

According to this plan, Dongfeng’s own brand will reach 3 million units in 2016, including 1 million Dongfeng Shuangfeiyan commercial vehicles, 1 million Dongfeng brand passenger cars, and 1 million other independent brands. At the same time, Dongfeng Commercial Vehicles will be the first in the country and the top three in the world. Dongfeng’s own brands will be the first camp of domestic self-owned passenger vehicles.

One million Dongfeng “Shuangfeiyan” commercial vehicles will be deployed in the following areas: 400,000 Shiyan bases, 300,000 Xiangyang bases, 200,000 bases in Zhengzhou and Liuzhou, and 100,000 other bases. Dongfeng's own brand passenger car business is mainly promoted from three fronts. The first front line is the Dongfeng brand's autonomous passenger car business, which will form the 2+2 Business Unit. The first 2 represents Dongfeng Passenger Car Company and Dongfeng Xiaokang Automobile Company. The second 2 represents Zhengzhou Nissan Motor Co., Ltd. and Liuzhou Automobile Co., Ltd.; it plans to achieve sales of 1 million units and strives to reach 1.2 million units. The second front line is based on Dongfeng Yulon and will develop Greater China brand passenger cars. By 2016, it will exceed 250,000 vehicles. The third front is the joint-brand company’s own-brand passenger vehicle business plan. Dongfeng Nissan Passenger Vehicles and Dongfeng Honda Motor Co., which are owned by Dongfeng Motor, have all arranged their own brand development plans. This front line plans to achieve sales of 550,000 vehicles.

Under the guidance of the "great autonomy strategy", Dongfeng also proposed the "big commercial vehicle strategy". The center of gravity of this strategy was laid in Shiyan to revitalize the "863 Plan", "61 Action Plan" and "government-enterprise cooperation" of the old industrial base. A series of action measures such as the establishment of a million-magnitude automobile city cooperation framework agreement will be promoted to accelerate the construction of the Shiyan large-scale commercial vehicle base. The new plant of the powertrain and the construction of the new heavy truck plant have been launched, and Volvo has joined hands with the establishment of a new international commercial vehicle alliance to sell Dongfeng commercial vehicles with the "Shuangfeiyan" logo.

With the support of the “Commercial Vehicle Strategy”, Dongfeng’s total investment in the Shiyan base will exceed RMB 14 billion over the next five years, with a focus on the development of medium- and heavy-duty commercial vehicles, passenger cars, light-duty vehicles, parts and equipment and equipment. These investments and construction will create a “new Dongfeng” in Shiyan, laying a solid foundation for Shiyan to realize the dream of building an “International Commercial Vehicle Capital”.

Shiyan Automobile Industry Renewed Forces

Driven by this favorable factor, in recent years, Shiyan automobile industry is gradually coming out of the bottom, and the development situation is gradually improving.

The dominant position of the auto industry is stable, and there are about ten industrial development patterns. Since 2011, it has exhibited a high-speed development trend. It has exceeded 570,000 vehicles throughout the year, making Shiyan Automotive Industry's share of the city's industry stable at around 70%. At the same time, Dongfeng’s leading role has also emerged, leading the healthy and rapid development of the Shiyan automobile industry. Dongfeng commercial vehicle sales ranks first in the country. Dongfeng brand heavy trucks in the depressed market structure further stabilize the top position and continue to maintain industry leading position. This special advantage of Dongfeng Commercial Vehicles will be the biggest leader of the Shiyan automobile industry no matter past, present or future, and it will continue to vigorously promote the sustainable development of the Shiyan automobile industry.

The support role of key enterprises has been highlighted, and the rapid development of the automotive industry has been promoted. In addition to 21 Dongfeng commercial vehicles, Shiyan has an existing production capacity of more than 1 million vehicles, and has formed a number of key enterprises with strong driving power, such as Dongfeng Industrial, Dongfeng Xiaokang, Shiyan Chitian, and Sanhuan Special Automobile. There emerged a number of well-known brands such as Dongfeng Xiaokang, Shi Zheng, Shenhe, Chitian, Condor and Shitong. The proportion of local auto industry in the Shiyan automobile industry has increased year by year, basically forming a good pattern in which the local auto industry and the Dongfeng Company's Shiyan base are equally divided.

The ecological function of the automobile is perfect, and the comprehensive competitiveness of the industry is strong. The entire vehicle product covers the commercial vehicle field. Shiyan has more than 3,000 national announcement catalog products; the auto parts industry is relatively advanced, and various types of auto parts are readily available in the commercial vehicle field. Supporting OEMs; Technological innovation capability has been further enhanced. As of now, Shiyan Automotive Industry has 17 high-tech companies, 11 provincial-level technology development centers, and 20 brand-name products at or above the provincial level; the automobile culture is rich in culture and possesses the “national automobile”. With the reputation of “Dudu,” “China's top 50 auto industry clusters,” and “China Truck Capital”, as well as rich science and education resources and human resources, automobile culture has become an important focus of Shiyan City to cultivate urban culture and urban spirit; auto parts sales With active market, China (Shiyan) Auto Parts City is the only auto parts city with the registered name of “China” and is one of the three major price information platforms in the auto parts market in China.

Building an International Commercial Vehicle Capital

Under the background of Dongfeng’s “great autonomy strategy”, although Shiyan has ushered in new development opportunities, it must integrate into Dongfeng’s grand strategy and follow up on the internationalization of Dongfeng. Shiyan still has many real problems to solve. Long way to go.

First of all, the problem of the irrational structure of the Shiyan automobile industry product is quite prominent. The performance of commercial vehicles is rapid, and the development of passenger vehicles is lagging behind. From the perspective of commercial vehicles, the medium and heavy trucks strongly support the rapid development of mini-vehicles, and the development of light trucks, buses and Special Vehicles lags behind; The unloading trucks represent a large scale of transport-specific vehicles and represent a lack of high-tech, high-value-added special-purpose vehicles; from the perspective of auto parts, most of the Spare Parts enterprises can only survive in the attached main plant. Independent research and development and lack of innovation capacity; from the market structure, the city's more than 60% of automotive and parts products are based on the development of the Dongfeng market, the market share is relatively narrow.

Second is the inconsistent corporate structure. Although there are more than 500 auto parts enterprises above designated size in Shiyan, compared with the national and large auto parts enterprises, the current production scale of auto parts companies is relatively small, which is summarized as “three more and three less”: the production of automobiles There are many parts and there are few assemblies; there are many large road products, and there are few high value-added products; there are many repeat production companies, and there are few specialized giants. This is incompatible with the current templating and systematic procurement methods of the host company. At the same time, bottlenecks in production factors still exist. In particular, the problems of financing difficulties for SMEs, high-level scientific and technological talents, and lack of management talents have become more prominent.

In the face of these development problems, Shiyan must strive to overcome self-improvement.

Vigorously introduce and cultivate the development of vehicle companies. Firstly, it is based on trucking companies to support the local vehicle companies to face the market and differentiate their development. Second, the Special Vehicle companies support the breakthrough in the development of local special vehicles, and strive to achieve a production and sales volume of 200,000 special vehicles in 2015 in the city. Above; third is bus companies as new business, attracting famous enterprises, striving for the formation of 50,000 Dongfeng passenger cars, Dongfeng Industrial Special Bus Co., Ltd. to form a production capacity of 30,000; Fourth, the development and industrialization of new energy vehicles, and strive to 2015 The annual sales volume has exceeded 50,000 vehicles and the output value has reached 10 billion yuan.

Efforts to strengthen independent innovation and collaborative innovation. The first is to build an independent R&D and innovation system to provide a strong impetus for the development of commercial vehicles. The second is to build a state-level commercial vehicle experiment and testing center to provide favorable conditions for research and development. The third is to hold a commercial vehicle technology trade fair to provide a platform for technology transactions; It attaches great importance to the training of automotive talents and makes Shiyan become the cradle of automobile talents. Fifth, it attaches great importance to the research of automobile development strategy and establishes the China Automobile Strategic Research Center.

Build commercial vehicle parts and equipment industry clusters. First, continue to expand the scale and support the development of key parts and components companies; second, adjust the product structure and cultivate suppliers of parts and components systems; third, build an e-commerce platform for commercial vehicle parts and components, strengthen and expand the parts and components marketing industry; Equipment manufacturing industry will improve the overall level of the manufacturing industry.

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