As a senior person who has been engaged in foreign-related economic reporting for decades, I have heard and witnessed many cases of vicious competition and cannibalism among Chinese companies abroad. The end result was a feather in the country, and Chinese products withdrew from the country's market.
Vietnam is the world's largest motorcycle country, with 45 million motorcycles. Since the end of the last century, a large number of low-cost Chinese motorcycles have been exported to the Vietnamese market, squeezing out Japanese-made motorcycles. In 2002, Chinese-made motorcycles accounted for 80% of Vietnam's motorcycle market.
When domestic motorcycle companies saw this piece of fat, they rushed to the top and a large number of domestic motorcycles entered the Vietnamese market. In order to compete for the market, domestic enterprises are fighting in the Vietnamese market, low-price competition, vicious competition, and motorcycles are unimaginably low. In order to win in the competition, domestic enterprises are fighting the best battle with their domestic counterparts while using their hands and feet on accessories to reduce costs. As a result of the vicious competition, the quality of Chinese motorcycles has seriously declined, and finally the entire army has been defeated in the Vietnamese market, and almost all of them have withdrawn from the Vietnamese market.
In recent years, China's automobile exports have grown rapidly, breaking through the 2 million and 3 million mark, and is expected to exceed the 4 million mark this year. Automobile exports can enjoy tax rebate treatment, the foreign market is relatively stable, and the benefits are also very good. In the context of serious involution and low efficiency in the domestic market, domestic auto companies have entered the overseas market in a big way.
However, it should also be noted that domestic car companies are swarming into overseas markets, which also brings some hidden dangers.
Xin Guobin, Vice Minister of the Ministry of Industry and Information Technology, pointed out in his speech at the 2023 World New Energy Vehicle Conference a few days ago that there is still a big gap between Chinese enterprises in the overall production and sales scale, underlying technological innovation, and first-class chain management. At the same time, there are also some cases of involution and disorderly competition in the domestic market, and there is also a trend of being involved in the international market. These problems not only cause damage to the interests of enterprises themselves, but also are not conducive to the sustainable and healthy development of the industry.
A person in charge of exports of a domestic automobile group told the final word that the company's dealers in the Middle East, Latin America and other places reported that due to the intensification of local competition among domestic car companies, there has been a phenomenon of discounted competition. The person in charge said that Chinese cars are exported overseas, and no matter what company or brand, the locals think that it is Chinese cars. If you fight a first-class war and kill yourself, it will damage the image and interests of the entire Chinese automobile. Developing the overseas automobile market requires long-term and arduous efforts, and it is very difficult. However, it is easy to ruin this market by fighting ** wars, vicious competition, and self-killing.
The lessons of history are worth learning from, and China's automobile exports must not repeat the mistakes of motorcycle exports. When domestic auto companies enter overseas markets, they should not crowd into a single market, but work hard to open up new markets. When entering the overseas market, it is important not to fight the first war and spread the involution to foreign countries. Chinese auto companies should have a sense of the overall situation, and play a joint role in opening up overseas markets to achieve a win-win situation. (ENDS).