The independent brand monopoly bus purchase catalogue concerns the implementation details

On February 27, the automotive stocks that had been quiet for a long time rose sharply. The stocks of Dongfeng Motors, Yaxing Buses, and JAC Automobiles had a strong daily limit. Nearly half of the auto stocks ended in a fluttering red.

Prior to this, on February 24, the Ministry of Industry and Information Technology issued the “2012 Catalogue of Selection of Official Vehicles for Party and Government Organs” (Draft for Soliciting Opinions), and it solicits opinions from the entire society. The deadline is March 9. In this bus procurement catalogue covering 412 models, the joint venture models were eliminated due to less than 3% of R&D expenditures. The finalists were self-owned brands.

According to statistics from Xinhuaxin, the amount of bus purchases in China in 2008 was approximately 80 billion yuan, and the purchase volume accounted for 7.4% of the total passenger car sales, and approximately 500,000 vehicles. According to the data of the Ministry of Finance, the amount of bus purchases each year has increased by more than 20%. Analyst Bai Xiaolan of Guotai Junan believes that if the growth rate of bus purchase in 2012 is calculated at 10%, the sales volume will reach 730,000 units, which will provide nearly 12% growth rate for independent brands.

Joint venture brand was nominated?

As a participant in the development of the bus procurement catalog, Dong Yang, Executive Vice President and Secretary-General of the China Association of Automobile Manufacturers, declined to comment on the release of the “Catalogue”.

At the China Aviation Association’s monthly meeting in February this year, Dong Yang told the media in a firm tone that the establishment of the “Catalogue” did not intentionally exclude joint venture brands. “We did it in accordance with one rule, and in my impression we had a joint venture. Brands and self-owned brands are listed on the "Catalogue." It should be in the final approval process of relevant government departments."

Judging from the results of the current "rules" announcement, the lack of a joint venture brand on the list is directly related to the following terms. According to the “Catalogue” requirements, reporting companies need to “have continuous vehicle technology research and development and product improvement capabilities, and have product R&D institutes. The research and development expenditures of enterprises in the last two years accounted for no less than 3% of the main business revenue.” .

“This standard almost blocks out joint venture models.” Jia Xinguang, a well-known car analyst, told reporters that joint venture models are generally derived from the global R&D platform of multinational car companies and are used by subsidiaries in each region. Although the current joint venture car companies in China continue to increase their research and development expenses, their main business income is relatively large, even if the investment of one billion yuan is insignificant compared with the main business revenue of hundreds of billions of yuan.

"This rule is in fact a major benefit to the smaller autonomous car companies." In Jia Xinguang's view, using the rules to block joint venture brands outside the bus procurement market, is actually the government's relevant departments on the concept of "domestic cars." One correction. “Before the relevant government departments believed that domestic cars are cars produced in China, so even if bus purchases had the requirement of 'first consideration of domestic cars' before, bus models of joint ventures could also be listed in large numbers. But now we look at the requirements of the Catalogue. In the future, domestically-made cars will specifically refer to self-owned brand models."

In fact, the introduction of the new "Catalogue" is not unrelated to the promotion behind the self-owned brand car companies. Zhan Qinghong, vice chairman and general manager of GAC Group, told reporters on February 27th that the “Creating New Leading System” and “Expanding the Future—China Automotive Industry System and Mechanism Innovation Summit Forum” revealed that Dong Yang had led some autonomy not long ago. CEOs of car companies wrote a report to the State Council’s prime minister and hoped that the government would support the self-owned brand models. “On just these few days, the bus procurement catalog was announced.”

"As an autonomous vehicle company, I would like to agree with this list and hope that the relevant government departments will continue to do so." Zeng Qinghong, a deputy to the National People's Congress, told this reporter that even if the bus procurement catalog does not lean toward independent brands, he also The motion will be put forward during the two sessions this year. It is hoped that the government will support and develop the autonomous car enterprises and clarify the definition and ultimate development significance of independent brands.

Dong Yang also disclosed in this forum, implicitly, in favor of the government’s support for domestic models in the “Catalogue”.

"A friend who once worked in foreign capital told me that the government should not openly support domestically-made cars. I think since the German prime minister and the U.S. president have openly supported their auto industry, why can't our country?"

The definition of official vehicles is vague. However, incumbent government officials have changed their “car” from Audi to Geely. According to experts in the industry, it is a difficult job to do.

Although the "Catalogue" on February 24th set out the brand, model, and displacement information, the definition of the scope of the public car that has been controversial has not yet been determined, leaving uncertainties for the official brand's official car market. .

According to Article 2 of the "Detailed Rules for the Selection of Models for Selection of Official Vehicles Used by the Party and Government Officials" (hereinafter referred to as the "Detailed Rules") issued in November 2011, "The official vehicles referred to in these Rules refer to the use of party and government agencies for the performance of official duties." The motor vehicles are divided into general official vehicles and law enforcement duty vehicles."

Because the "Catalogue" is formed on the basis of the above "Detailed Rules" requirements, this means that the "Catalogue" uses only models for "general official vehicles" and "law enforcement duty vehicles", while the party and government agencies use vehicles. The "leading cadres car", "specialized technical vehicle" and "other car" do not include it.

Last year, Beijing announced that there were 620,260 official vehicles, a far cry from the 700,000 previously predicted. Statistics in Beijing refer to the actual number of motor vehicles used by Beijing party organizations and government agencies at all levels and full-funded institutions to perform official duties, including all cars such as cars and passenger cars.

Most industry experts believe this definition is too narrow. However, even in the broader Guangdong version, the definition is used by party and government agencies, public institutions, social organizations, state-owned companies that account for more than 50% of state-owned enterprises, centrally-administered and provincial public vehicles purchased in Guangdong, not many people think. Any purchase of public finances should be considered as a bus."

These broad definitions leave doubts on the actual operation of official car purchases that are entirely independent brands. According to insiders of a local government, before the government unit used the car to improve the subordinate units, after buying a new car, the old car was used for personal use. "If you don't want to buy a car within the "Catalogue," you can still use this method to buy cars for your own use in units within the definition of subordinate non-civil service vehicles."

For example, according to Beijing's caliber - non-full-funded industrial units, state-owned enterprises, etc. are not included in the scope of official vehicles, subordinate units of government departments can still purchase brand models not in the "Catalogue" within the scope of the policy.

In fact, at the bus procurement stage, all local governments have always adopted the "Regulations on the Formulation and Provision of Official Vehicles for Central Government Officials" issued by the State Council Affairs Bureau in 2004 (hereinafter referred to as the "Regulations"). "The "Regulations" actually set three principles for the procurement of buses, the first being safety, the second being environmental protection and the third being the supporting standard. There is no document now that the "Regulations" will be invalidated due to the "Catalogue". It involves the question of exactly which set of standards to implement for the procurement of buses.” Jia Xinguang, an auto industry analyst, told reporters.

The enterprises are more concerned with the implementation rules. "According to the actual situation, unless it is the lowest grassroots, the least economically developed streets and townships, it is possible to buy independent brands as official vehicles." The head of the large-scale client department of a state-owned auto company complained that The biggest difficulty encountered in market development is brand prejudice.

“Quality, shape, configuration, security, and Guangzhou Auto Group are among the top performers in the procurement of official vehicles, and even win some joint venture brands. The Catalogue is very good for Chuanxi, but the follow-up policy Need to follow up and improve.” Insiders of Guangqi Chuanxi said in an interview with this reporter that the most worried is the follow-up effect of the follow-up policy after the introduction of the “Catalogue”.

The concerns of companies are not unreasonable. As early as 2009, the "Auto Industry Adjustment and Revitalization Plan" proposed that from 2009 onwards, all levels of government and public institutions equipped with newer public car brands should not be less than 50%. However, the actual proportion of official brands purchasing their own brands was far below this figure.

On November 18 last year, the Ministry of Industry and Information Technology, the State Council Organ Affairs Authority, and the Office of the Authority of the People's Republic of China Central Committee issued a circular jointly requesting that “the purchase of government official vehicles be limited to 1.8 liters or less and the price of 180,000 yuan.” In accordance with the above regulations, there are few joint-venture brand models in mid-to-high-grade cars that meet the displacement and price. However, the self-owned brands that meet this requirement have a variety of models that are spacious and have a solid appearance and meet the requirements of official vehicles. However, the purchase of official vehicles has not fully complied with this requirement.

"The main reason is that the follow-up policy has not followed up, there is no specific binding rules, many companies and local governments are not even 50% of the vehicle in the end or the purchase amount of 50% is not clear." The above said.

There are no shortages of concerns about the future implementation of the Catalogue. “The Ministry of Industry and Information Technology has only made technical requirements and has not provided details for the regulation of local government procurement. It is the Department of State Organs Affairs Bureau and other departments that actually govern this matter. The follow-up needs these departments to jointly issue orders.” Luo Lei, deputy secretary-general of the circulation association, reminded.