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Sub-anchor: Innovation key for China's auto industry

05-04-2012 08:22 BJT

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Chinese market has hosted foreign investors and provided them with made-in-China services and goods. But the country is also working towards upgrading its own manufacturing industry, with some companies already well on their way to boosting the image and quality of the ’Made in China’ brand. Full story >>

And, we’re joined right now by our reporter Ai Yang in the studio.

Q1. We’ve seen that the privately owned Geely company is blazing a trail in terms of enhancing the image of Chinese-made cars, and going global. But can you give us an idea of the more general picture, in terms of how the other Chinese carmakers are doing in this increasingly competitive market?

A1. Indeed, quite a number of Chinese car manufacturers now seem to be focusing more heavily on quality, rather than quantity. But as I mentioned in the story, Chinese car brands only have about a 30 percent slice of the domestic market with 70 percent of people buying foreign brands made in China. Chinese manufacturers can add to their profits by participating in joint ventures with these foreign companies. But, at the end of the day, the Chinese partners aren’t really helping themselves, because they’re helping to open up the market for more foreign cars. And, of course, the core technology remains under a foreign patent. Many analysts agree that the workforce is in place and ready to go. We just need some more Chinese branded creativity. So - technology innovation is the key! But, although many Chinese carmakers seem to be aware of that fact, a recent industry report shows that the average investment in research and development by Chinese car companies still only accounts for 2 percent of sales figures. That’s far below the 5 to 8 percent of some major foreign brands. So it seems we still have a long way to go.

 

 

Editor:Zhang Dan |Source: CNTV.CN

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