China's auto industry still hollowing out new joint venture marketing

The market-for-tech industrial strategy was slammed by the Great East Japan Earthquake and fully demonstrated that the core technology hollowing in the automotive industry in China still exists.

In the past two months, Japan’s spare parts supply has been stretched, and Honda and Nissan’s production in China will have to face large-scale reduction and suspension of production. Toyota Motor China announced that from April 21 to June 3, the operating rate of all vehicle factories will be adjusted to 50% of normal time, and in extreme cases it may be adjusted to 30%. According to industry forecasts, the impact of the earthquake in Japan on the Chinese automobile market may be reflected in June. China's implementation of the "market-for-technology" strategy for 27 years still failed to completely replace a complete industrial chain. Many joint venture car companies still need to look at the faces of others. Since Japan has a large number of component exports to China, and most of them are concentrated in the core components of automobiles, the current earthquake in Japan has caused the supply of its core components to be in short supply. If it takes too long to resume normal production, it will inevitably lead to The Japanese domestic joint-venture car companies are subject to greater impact, and will also affect other domestic car companies that purchase Japanese core components.

In the 27 years of joint venture between China and foreign investment, a complete parts and components system has been established and the huge human resources of the Chinese automobile industry have also been nurtured. However, if China has given the market, but the technology has not been exchanged, the strategic will and the tactics are going their own way. China has used the world’s largest automobile production and sales company in exchange for the arena of foreign capital. In the field of car navigation maps, NavInfo, the leading domestic listed company, also saw this. Recently, NavInfo and SAIC Information signed the "Letter of Joint Venture" and jointly invested 20 million yuan to set up a joint venture company. This is a marketing innovation that breaks the market for technology.

Before 2006, NavInfo was the only one who had obtained the approval of the government to take the lead in developing the navigation map business. The oligopolistic market was unique. After 2006, in order to promote industrial development, the Chinese government has supported more map companies to enter the market in an orderly manner. Gao De, Imagination, Long Land, Yi Tu Tong, Ling Tu and other companies have been able to carry out navigation map business, and the domestic competition landscape gradually Expand. In response to an increasingly fierce competitive landscape, NavInfo and Toyota set up the new Beijing Jingwei Latitude, and Nokia set up Shanghai Nawei Information. The two newly formed joint ventures allow NavInfo to quickly own two major customers, Toyota Motor and Nokia, and are fully supported by cutting-edge navigation map technology from Toyota Group and Nokia Group. Toyota and Nokia have also been able to share with NavInfo the cake of the huge potential China navigation map market. NavInfo’s new market-for-technology strategy has achieved initial success, and it has also forced other mappers entering the market into a narrow living space. In 2009, NavInfo continued to expand its market share. For example, Shanghai Automotive, Shanghai General Motors, and SAIC passenger vehicles almost all major navigation models were won by NavInfo.

However, in 2011, the market situation changed dramatically. Not only did Toyota's navigation assembly volume drop drastically, Nokia was in trouble and more than 90% of Shanghai Volkswagen’s cars, more than 80% of Shanghai’s General Motors, and even more than 90% of the navigation map of SAIC Motor’s main vehicle Roewe 350 had been Converted to another photo provider Gold Software. In just two years, the market structure has undergone tremendous changes and NavInfo has won the throne of the first car navigation map market in China for several consecutive years. In particular, when Audi, Buick GL8 and other high-end navigation models introduce three-dimensional model data, the block shows the map of the district, lane guidance, tenants in the building floor navigation, road warning signs, road signs and other detailed navigation features such as cutting-edge navigation map, four-dimensional map The new inability to compete with competitors, taking a look at all the domestic high-end properties of the navigation map orders have been taken away by competitors, which may also include 2012 BMW orders. Not only that, the three major telematics services and real-time traffic information services that SAIC Motor has already launched are also taken away by NavInfo’s new competitors. Therefore, NavInfo's original market-for-technical strategy did not achieve the expected results. Instead, it gradually lost its competitive advantage, especially after entering 2011.

If the joint venture between NavInfo and Toyota and Nokia is to exchange foreign technology for the Chinese market, then the joint venture with SAIC Information will be used to exchange the benefits of the map for SAIC Motor.

This joint venture is NavInfo's innovation in channel marketing and business expansion. It is a brute force for competitors to take advantage of the unfavorable circumstances in which competitors have mastered core technologies. There is no doubt that NavInfo and SAIC Information will become a huge beneficiary of this joint venture, but the navigation users of the restricted SAIC Group may feel disappointed.