Recently, the National Development and Reform Commission completed an anti-monopoly investigation of 12 auto companies in Japan. It has been found that Chrysler and Audi do have monopolistic behavior and will be punished according to law. Insiders of the National Development and Reform Commission revealed to Phoenix Finance that the anti-monopoly is mainly concentrated in three parts: vehicle prices, accessories and maintenance prices, and bundled marketing.
1. What is the anti-monopoly investigation of foreign-funded car companies?
Background: The development of China's market economy has entered a new stage today. The new leadership also emphasizes that the market plays a decisive role. China's economy is also aligned with the market economy of Europe and the United States. This is the background for the more use of anti-monopoly law.
Purpose: The National Development and Reform Commission's investigation of automobiles and accessories began at the end of 2011. The purpose is to maintain the competitive order of the automobile market and protect the legitimate rights and interests of consumers.
Reason: Law enforcement agencies have confirmed that some car companies have horizontal restrictions, vertical restrictions, and abuse of market dominance and other suspected monopolistic behaviors. The National Development and Reform Commission confirmed that it has completed an investigation into the monopoly case of auto parts and bearing prices of 12 Japanese companies and will be punished according to law. It has been found that Chrysler and Audi have a monopolistic behavior and will be punished accordingly.
Foreign media observation: The Chinese government is increasingly aware that foreign companies' prices for Chinese consumers and corporate customers are usually higher than those of other global markets. The Chinese government is trying to exert greater influence on the pricing of foreign-invested companies' products in China.
Foreign media believe that the Chinese regulator may use the anti-monopoly law as an international tool to protect the development of related industries and support domestic enterprises. The reason why China adopts anti-monopoly law is due in large part to the anti-American system.
The monopolistic behavior of China's auto industry is mainly "the main equipment factory monopoly spare parts sales channel"
2. Is there a “monopoly†in the Chinese auto market?
Insiders of the National Development and Reform Commission revealed to Phoenix Finance that the anti-monopoly is mainly concentrated in three parts: vehicle prices, accessories and maintenance prices, and bundled marketing. Limit the price of the whole vehicle, that is, horizontal monopoly; limit the price of spare parts and maintenance price of 4S shop, that is, vertical monopoly.
Horizontal monopoly does not exist: Zhong Shi, a senior expert in the automotive industry, said that the Chinese auto market is a mature market. Nowadays, the market competition is extremely fierce. It is very difficult for auto companies to control prices. “Horizontal monopoly no longer existsâ€.
The monopolistic behavior of China's auto industry is mainly "the monopoly of monopoly spare parts sales channels." "This monopolistic behavior is caused by the monopoly of channels. The supply of channels and the pricing of spare parts are all determined by the automakers. From upstream suppliers to downstream dealers, to consumers, there is no choice." Analysis said.
The vertical monopoly features are obvious: Auto suppliers have comprehensive control over the distribution network established by 4S stores to bear high costs. Some experts said that this relationship between auto suppliers and 4S stores actually has the characteristics of vertical monopoly behavior. The more common form of expression is the unilateral behavior in the form of business policies, circulars, information, notices, etc. issued by car suppliers to dealers.
Specifically, the automobile supplier directly fixes or limits the resale price of the dealer, the sales profit of the fixed dealer, limits the maximum discount of the dealer to the customer, and limits the fluctuation range of the resale price; the automobile supplier requires the 4S shop to distribute only End users (including individuals and business users) in the region sell cars; when auto suppliers supply tight models to 4S stores, they sell fixed-selling models, and when they supply new cars to 4S stores, they can buy original parts. To constitute a monopolistic behavior regulated by the Anti-Monopoly Law.
In the after-sales market, the reporter found that in China's automotive after-sales market, the original spare parts are exclusively supplied, the original parts are tying and repairing services, and the availability of maintenance technical information is relatively low, and the "bad consequences" of these phenomena are in China. In the automotive aftermarket, the zero ratio can reach an abnormally high 12:1.
In the repair service, some areas also have the phenomenon of horizontally limited working hours between 4S stores.
Local protection induces the monopoly of used cars: In the industry's view, the local protection of the automobile industry is mainly concentrated in the circulation of used cars and the entry of new energy vehicles. The poor circulation of used cars caused by the restrictions has been transmitted to the new car market, and the local monopoly phenomenon is equally serious in the field of new energy vehicles that are currently booming.
3. What is the anti-monopoly?
Luxury car profits: This round of "anti-monopoly" is actually to eliminate the drawbacks of the automobile industry due to years of high praise and enthusiasm. It is more like a centralized rectification of the phenomenon of high price in the automobile industry. The most typical problem is imported cars. It is the price of imported cars that are much higher than the price of new cars abroad, and the astounding zero-ratio coefficient of selling new cars in China.
The entire industry law: a luxury car brand staff member who did not want to be named said that her company has a special legal staff to train all members of the "Anti-Monopoly Law", so that people in different positions know what can be done And what is forbidden, in the past everyone did not have this awareness.
To create a paradox for the withdrawal of the old "Measures": In 2008, the China Automobile Dealers Association began to organize and discuss the revision of the current "Measures", including the Ministry of Commerce, which also publicly stated last year that the current "Measures" It is no longer suitable for market development, and is being revised with the National Development and Reform Commission, the State Administration for Industry and Commerce and other departments.
The entire Chinese automobile industry will undergo major changes. IV. Who will be injured in the anti-monopoly investigation of imported cars?
With the deepening of the anti-monopoly investigation, the cost of luxury cars, parts prices and maintenance will decline, and Chinese consumers will usher in a better consumer environment. For the relevant car companies and dealers, the impact is hard to avoid, and the entire Chinese auto industry will undergo major changes.
Fear and autonomy, joint venture brands: Now the state intervention price cuts, the most affected may be the first independent brands and other joint venture brands. The city gate caught fire, and the pool fish. "In the past, the state imposed high tariffs on imported cars. It is hoped that multinational companies can produce in China and drive domestic employment. They hope to reserve price space for the development of independent brands. However, after this round of anti-monopoly, the living space of independent brands will be further compressed. "The industry said.
On the one hand, it is good for large-scale auto dealers with strong strength to develop diversified business models such as “automobilesâ€. In the future, 4S stores will break the current situation of single-brand automobile sales, and it is expected that there will be “automobile stores†and “automobiles†and other business models, including huge Group, Yaxia Automobile, etc.; on the other hand, it is conducive to the development of the imported car market, and it is like a company that provides wholesale trade services like SINOMACH.
The distributors made the monopoly roots. A consulting assistant who has been engaged in luxury car consulting work for a long time told Phoenix Finance that from the perspective of price cuts, since the main investigation direction of anti-monopoly is after-sales, there are very few people who actually touched. Moreover, now everyone says that the "zero ratio" is too high, and the focus is only on a small part of the after-sales. After-sales service also includes insurance, maintenance, etc., and it is even more difficult to control the pricing of these intangible services.
For the whole vehicle price, the supply and demand situation in the Chinese market determines that the seller of the luxury car market is tough, has the right to speak and pricing, and the price reduction is not large.
From the perspective of fines, the consultant said that the NDRC’s chances of issuing “high price†tickets are not high. Because the automobile industry's industrial chain is very long, and the interests involved are many, the joint ventures are the major local government tax collectors. Unless the country is determined to rectify the automobile industry, the fines of foreign-funded enterprises will not be high.
V. How to crack the monopoly The root of monopoly: the monopoly of a single brand creates a monopoly.
Automotive analyst Jia Xinguang believes that, to some extent, the current status of the market has a lot to do with current policies. “The Implementation Measures for Automobile Brand Sales Management implemented in 2005 stipulates the exclusive authorization of a single automobile brand, which makes the dealer and after-sales service form a closed system, thus resulting in a strong position of the automobile enterprise and a monopoly of the price of the supporting service.â€
Breaking the general dealer system: The State Administration for Industry and Commerce recently issued a document to abolish the mandatory binding relationship between auto dealers and OEMs, which means that the situation of auto dealers obeying automakers has changed over the years, which will drive the anti-monopoly of automobiles. A major role.
Breaking the boundaries of brand monopoly: Taking imported cars as an example, it is necessary to introduce free traders and break the monopoly of imported auto sources by multinational auto companies.
Breaking the monopoly of accessories channels: the original parts and "homogeneous parts" are freely circulated in the market, and hope to establish a unified vehicle maintenance record to break the monopoly of maintenance parts.
Chinese-style anti-monopoly dispute: the National Development and Reform Commission of the Ministry of Commerce and Industry jointly enforced China's anti-monopoly work is carried out by the Development and Reform Commission, the Ministry of Commerce, the Ministry of Industry and Commerce, three organizations, it can be said that the organization is huge. It is not excluded that several units may be arguing for profit.
Moreover, in recent years, with the liberalization of the market, the NDRC's licensing, planning and examination and approval powers have been reduced, and the party that once called for "the wind and rain" has long since disappeared. Some insiders speculate that this round of auto anti-monopoly may be the opportunity for the National Development and Reform Commission to take the opportunity to attack. The scope of the crackdown may be the requirement of the performance project.
The freezing of three feet is not a cold day, the high price of the luxury car market is not two days a day, why is it now vigorously rectified? This involves regulatory issues in the automotive industry.
Today, the auto industry is in a multi-headed management, and the interests are complicated and difficult to coordinate. The competent departments are mainly the National Development and Reform Commission and the Ministry of Industry and Information Technology, and the quality supervision is the responsibility of the AQSIQ. In addition, the Ministry of Commerce, the State Administration for Industry and Commerce, the State Certification and Accreditation Administration, the Ministry of Environmental Protection, the Ministry of Public Security, the Ministry of Finance, and the State Administration of Taxation also conduct coordinated management and supervision of different aspects of the production, sales and use of the automobile industry in accordance with relevant regulations. In addition to these large and small departments, there are various industry organizations such as China Automobile Industry Association and China Automobile Distribution Association, which undertake functions such as self-discipline management, information statistics and international exchanges. Such a complicated system makes people ask a question mark on whether the work can be carried out smoothly.
6. How to anti-monopoly in foreign countries?
In the anti-monopoly of the automotive industry, the experience of developed automobile markets such as Europe, the United States and Japan is worth learning.
The EU adopted the “open car sales formatâ€: they redefined the model to adapt to the new industry environment, completely separate sales and maintenance, and reformed the car sales method, allowing dealers to license multiple brands.
The United States has fostered dealerships with the help of associations: the rise of the American Automobile Dealers Association (NADA) and the large auto dealership group has changed this. Since its inception in 1917, NADA has been striving for equal relationships between dealers and OEMs.
Japan promotes market competition by allowing parallel imports of cars to break monopolies. Parallel imported cars refer to original genuine cars that have not been authorized by foreign auto companies and authorized or licensed by domestic distributors.
From the international experience, it is the key to breaking the monopoly of the auto industry by giving full play to the market mechanism, balancing the relationship between OEMs and dealers, and establishing a harmonious ecological system.
Conclusion: The ultimate goal of this "anti-monopoly" should not be to let most multinational and local car companies reduce the zero-to-negative ratio to a tolerable range, but to form a long-term institutional outcome for pricing mechanisms and process control. For example, after many years of revision and improvement of the "Measures", is it possible to choose an opportunity?
Die Cast Aluminium,Led Lamp Housing Parts,Aluminium Die Casting Parts, Led Light Cover Parts
Ningbo Best Channel Import & Export Co., Ltd. , https://www.nbbtc-metal.com