Anti-monopoly automotive parts are desperate for top-level design is the key

The rain is coming over the building

Anti-monopoly policy is strengthening, luxury car manufacturers are pre-sensing.

A few days ago, a message that “the highest price cut of some Jaguar Land Rover models was RMB 300,000” was detonated.

Jaguar Land Rover China announced that it will start the downward adjustment of the guide prices of its three models starting from August 1, including the Land Rover Range Rover 5.0v8, Land Rover Range Rover Sport version 5.0V8 and Jaguar F-TYPE convertible models. The average car price dropped by as much as 200,000 yuan.

Coincidentally. The price of luxury cars has recently dipped and fell. A generous drop of hundreds of thousands of dollars, people's surprise that the profits of luxury cars is not groundless. Mercedes-Benz also took the initiative to reduce its maintenance menu from July 10, with an average price adjustment rate of 20%. Mercedes-Benz’s main models including smart and Mercedes-Benz A/B/C/E/GLK/M/R/S grades The basic A, B maintenance and accessories replacement prices.

Tao Ran’s father believes that the causality of his own self-paining besides the intensification of market competition, but also intensified by the anti-monopoly policies of relevant Chinese departments, and the coming of rain and rain on the wall, "Prophet" luxury car manufacturers are pre-sensing.

Some luxury cars have huge profits. The selling price in the Chinese market is obviously higher than that in foreign markets, even as much as three times.

On June 10, officials of the Ministry of Commerce confirmed to the media that the Chinese government is reviewing the potential monopolistic behavior of foreign brands in the domestic automobile market.

Therefore, the huge adjustment of luxury car prices was interpreted by industry insiders as a response to the National Development and Reform Commission's price supervision and inspection and anti-monopoly investigation by the Anti-Monopoly Bureau against the auto industry.

In the face of possible anti-monopoly sticks, luxury car manufacturers are paying close attention and self-adjustment.

The first step is to learn the lesson. Exorbitant market prices have caused many manufacturers to pick up their own feet. In 2013, the NDRC investigated the monopoly of Maotai Wuliangye, Samsung/LG LCD panels, and foreign milk powder prices. In May 2014, it imposed a fine of 19 million on the price monopoly of Essilor, Nikon, and Bausch & Lomb opticians.

With the warning from relevant authorities, luxury car manufacturers who are allegedly monopolized are actively trying to adjust their prices in order to avoid being attacked by "anti-monopoly sticks."

Luxury car manufacturers step back and avoid igniting their bodies. They are smart. Although on the surface the "high price" has been dropped, the time may come when the supply is oversupplied.

Monopoly is not only manifested in the field of vehicle sales

The scene of damage to the interests of consumers not only appears in the field of vehicle sales. "Parts profits" compared to "wholesale profits", is also a vertical monopoly in the field of sales.

Different from the full price of the vehicle, "Zhou Yu hits the yellow cover - one is willing to fight a wish." Consumers can only dumb and eat Coptis, and they can't say anything. It is difficult to keep a car and can't afford it.

On April 10, 2014, the China Insurance Association and the China Association of Automobile Maintenance jointly published research results on the "zero-to-zero ratio" coefficient of domestic common models. For the first time, the "Complete Parts Ratio" and "50 Items" of 18 common models were disclosed. Fractional parts ratio is zero." According to the report, the highest zero-to-total ratio for complete vehicle parts for 18 models is 1273%, the lowest is 272%, and the highest value is 4.7 times the lowest value. Among the 50 zero-to-total ratios of wearing parts, the highest coefficient among the 18 models was 223%, the lowest was 77%, and the highest value was 2.9 times the lowest value. What is shocking is that there are actually as many as 1273% of the total vehicle parts with a zero-to-zero ratio. This means that if all parts on the vehicle are replaced, then at least the equivalent of buying 12 new cars would have to be paid. In other words, "the total price of automobile parts is equal to 12 new cars." This deaf person's insider was denounced by the media as "the darkest part of the Chinese auto market."

Eradication of the monopoly of malignant tumors in the field of fittings is not based on regulations. In 2008, China introduced the "Anti-Monopoly Law," and the Ministry of Commerce responsible for business operators conducted a centralized review. The National Development and Reform Commission and the State Administration for Industry and Commerce are responsible for the monopoly agreement and abuse of market dominance. The State Development and Reform Commission is responsible for price monopolies, while the State Administration for Industry and Commerce Be responsible for. However, over the years, there has been no practical action to break the vertical monopoly in the field of auto parts. In breaking the monopoly and safeguarding the rights and interests of consumers, the relevant departments have either repeatedly lost their voices, or have had little rain and rain, affecting the "credibility" and criticizing people.

However, since the beginning of this year, the anti-monopoly problem of auto parts has been accelerated.

On the eve of the "two sessions" held this year, it was reported that the demolition and reform commission plans to conduct a peripheral investigation of the vertical monopoly of auto parts. On June 30, 2014, the Ministry of Communications issued the “Guidance Opinions on Promoting the Transformation and Upgrading of the Automobile Maintenance Industry and Improving the Service Quality (Draft for Soliciting Opinions)”, which includes encouraging the free circulation of auto repair parts and encouraging the original parts manufacturers to sell to the auto. The market offers original accessories and terms for individual aftermarket accessories with their own brands, trademarks or logos. On July 18th, Bloomberg reported that the National Development and Reform Commission is conducting sales and after-sales services for imported auto parts and components and conducting anti-monopoly investigations against foreign automakers. The survey targets Mercedes, Audi, BMW and Japanese automakers.

The anti-monopoly of the auto parts industry is ready to go.

Doing top-level design is key

Whether it is the sales of whole vehicles or the sales of accessories, the root cause of its monopoly is the “Implementation Measures for the Management of Automobile Brand Sales” that was formally implemented in 2005.

Article 25 stipulates: “Automobile brand dealers shall be engaged in vehicle brand sales, after-sales services, and accessories supply within the scope authorized by the automotive supplier”. Accordingly, the entire vehicle sales channel and the OEM auto parts distribution channel are all legally controlled by the main engine plant, resulting in an overwhelming majority of car manufacturers, overshadowed by the price of car parts, and consumers becoming lambs to be slaughtered.

The formation of a monopoly pattern of auto parts has given rise to a "zero-to-all ratio" of the highly surprising joint venture models. The 4S shop network authorized by the foreign party firmly controls the pre-sales and after-sales links, and through penetration and control of the entire value chain, it has obtained excess profits and acquired more hidden and overflowing wealth.

The monopoly of the aftermarket parts market stipulates that 4S stores can only obtain “genuine” from suppliers, while other auto parts dealers can only make a sigh of disappointment, even if they can already meet the “original” standard of automobile manufacturers.

Dealers are not allowed to use accessories from sources other than foreign-owned defective parts suppliers to reject parts that meet the quality standards but are cheaper from other parts manufacturers, and are not conducive to strengthening the Chinese auto parts industry. Bigger, it is also not conducive to reducing consumer vehicle ownership costs. As the foreign investment in the joint venture penetrated the whole value chain of auto manufacturing, the vast majority of profits were taken by the foreign party. In addition, multinational auto giants have introduced wholly-owned antimony components and parts supporting systems in China. The realization of large-scale support for the first-generation projects in recent years has also affected the process of independent innovation and application of Chinese auto parts and components, leaving them either useless or useless. It's hard to play on the bigger stage.

Stones from other hills, can learn. Industry experts pointed out that the international experience of supervising the monopoly of auto parts and components to maintain the competitiveness of local auto parts, vehicle industry, and consumer rights is worth learning from.

For example, the United States launched an investigation into the auto parts industry, which brought out dozens of companies and individuals involved and imposed fines of more than one billion US dollars. The German anti-monopoly agency also investigated six parts suppliers, including Magna and Foggia, suspected of price manipulation of parts and components, and even searched its office.