The launch of the adjustment and revitalization plan of the automotive industry greatly encouraged the long-awaiting automotive industry. Words like confidence, inspiration, and energy are the common comments of delegates and commissioners of the automotive industry. As an important mainstay industry of the national economy, the automotive industry has a wide coverage, high degree of association, and can stimulate consumption greatly. The launch and implementation of the adjustment and revitalization plan of the automotive industry is of great importance for the automotive industry to boost the industrial structure optimization and upgrade, improve corporate quality and international competitiveness, and keep stable and relatively rapid economy development.

Cars are busy going to the countryside.


In the adjustment and revitalization plan of the automotive industry, relevant supportive measures to cultivate new auto market will directly benefit many automotive enterprises.


Since they can enjoy the dual preferential of half-reduced purchase tax and financial subsidy for once, mini cars benefit most from the adjustment and revitalization plan. Meanwhile, in recent years, with the farmers' income continuously increasing, the rural market has become an important market of mini car sales, and many mini car makers have begun developing and perfecting the sales and service system of rural market in advance, which lays a foundation for the further exploration of rural market.


"The launch of the adjustment and revitalization plan of the automotive industry is a great driving force for the strategic development of Chana Group." said Yin Jiaxu, a deputy of the National People's Congress and Vice General Manager of China South Industries Group Corporation (CSGC). He added that both the policy of purchase tax reduction by 5 percent on cars of 1.6L and lower emissions and the supportive policy of enterprises' independent innovation and technological alternation are great encouragement for Chana. At the beginning of 2009, almost all important moves of Chana, which is mini car oriented, are related closely to the rural market exploration: At the beginning of 2009, the great action of "mini cars to the countryside and RMB100 million yuan subsidy" was launched; shortly after the launch of the adjustment and revitalization plan of the automotive industry, Chana held the signing ceremony of strategic cooperation of Chana mini cars and motorcycles to the countryside with six major brand motorcycle manufacturers as Jialing, Jianshe, Jinan Qingqi, Qingqi Suzuki, Chongqing Jianshe Yamaha motor, Luo Yang North Enterprise Group Limited Company, which allows Chana Group to make 50,000 mini cars for the 6 major motorcycle manufacturers as their work, promotion and service vehicles at county level. In 2008, the aggregated marketing network amount of Chana mini cars achieved more than 3,000 with the network coverage rate of 41.2% in countryside.


For Li Jindian, deputy of the National People's Congress and Board Chairman of Liaoning Shuguang Automotive Corp. Ltd. (SG), the launch of the adjustment and revitalization plan of the automotive industry is a golden opportunity for product structure adjustment. It has become the important content of product structure adjustment to pay attention to the rural auto market which has great potential. "We should produce new-energy cars, produce cars affordable for farmers, and produce axles and accessories with low price and high quality, demonstrating the brand effect of our leading products. In response to the state policy of automotives to the countryside, we actively launched prosperity cars at RMB40, 000 odd yuan and pickups with the most reliable quality for farmers to expand our rural market."


In addition, auto manufacturers like SGMW and Great Wall Motor successively explore their rural auto market more energetically. Chery launched its mini car brand Karry shortly after the new year, and conducted the second development on its current car types in line with the characteristics of rural and town users.


Once launched, the measure of stabilizing and expanding the automotive consumption demands in the adjustment and revitalization plan of the automotive industry is warmly welcomed by the market. Statistics from CAAM show that passenger cars of 1.6L and lower emissions in China increased by 18.8 percent in January, 1.5 percent up year on year, much higher than the total increase of passenger cars. Among them, 56,700 sets of cross passenger cars under 1L emissions are sold, increasing by 151.24 percent month on month and 3.24 percent year on year; 72,500 sets of cross passenger cars with the emissions between 1L to 1.6L are sold, increasing by 32.16 percent month on month and 25.93 percent year on year. Most mini passenger car manufacturers realized a good start in 2009, and their sales in January hit a record high. Chana's sales volume in January increased by 266.61 percent month on month, and sales volume of Hafei Automobile Group in January increased by 46.21 percent than that of December 2008.


Speed up the structural adjustment


Challenge is a rich mineral bearing opportunities. Only by finding and seizing opportunities in challenges could a company become an excellent company with competitiveness.


"We are seizing the opportunity to adjust product structure, reduce cost, and introduce technologies and talents, so as to improve the core competitiveness of our group. We find opportunities in the crisis, so we actively purchase and introduce foreign technologies and talents. Making use of the depressed foreign auto industry, we purchase and introduce advanced technologies and practical expertise for our own use, narrow the gap between China and other countries, command latest auto technologies, employ high-tech talents, strengthen the innovative capacity of independent brand, and lay solid foundation and make preparation for the better development in the future." stated Li Jindian.


Deputy Yin Jiaxu stated that in terms of product pattern, both for Chana sedans and mini cars, car types of 1.6L and lower emissions take up a great proportion at present, which apply with the national energy conservation and emission reduction policy and the newly launched adjustment and revitalization policy. Chana V101, which is independently developed by Chana will be on the market in this month, and in the future 5 years, Chana plans to release several sedan products with independent brand. Moreover, in terms of new energy auto technology, Chana has obtained great breakthrough. Currently, Chana has mastered the core technologies of micro hybrid electric vehicle and mild hybrid electric vehicle, and has industrialized them. Chana has also made breakthrough in the core technology of full hybrid electric vehicle. At present, Chana possesses more than 300 various patents in the new energy auto technology field including 27 patents of invention, and has built up China's first independently developed HEV production line.



The promotion of energy conserving and new energy cars is an important content of the adjustment and revitalization plan of the automotive industry, and also a key problem concerning the future developing road of the automotive industry. How to develop and produce cars that can better conserve energy and how to make the energy conserving and new energy cars more acceptable for the market are problems commonly noticed by deputies in the automotive industries.