Ding Hongxiang, general manager of guest Sohu Auto Channel

 December 12, 2007, Ding Hongxiang invited to attend the fifth general manager of Sohu car week to discuss the automobile market in China in 2007 and future development.
FY dialogue:
07 auto market automobile market outlook
inventory of 2008 Moderator: economic environment in China in 2007 greatly changed, the automotive industry environment, great changes have taken place, however, reflected in the market, most car companies, or to obtain a good harvest. The automobile bumper of the stories behind a lot, we have invited us sort out the small total inventory overall automobile market in China in 2007 situation.
Ding Hongxiang: We count the automotive industry in 2007, when the results achieved can be seen, the entire automotive industry has a lot to pay, but also have a lot of harvest. I personally feel that this harvest is not just car sales volume increases, the expansion of markets, not just our profits significantly more than even a large quantity of sales growth, more important is the whole of China as a manufacturing base for automobile manufacturing and the manufacturing sector this advantage has been further strengthened, in communication with a number of multinational companies which, in the protection of the quality of the entire vehicle cases, the cost of the manufacturing sector in China may be 20% lower than elsewhere, if the high degree of localization can be reduced some 30%; the same time, China's auto industry, the advantages of the manufacturing sector has also been further consolidated and strengthened; manufacturers are also more clearly strategic; 自主 brand's rise and rapid development of independent brands have made great progress and accumulated; all manufacturers pay more attention to R & D areas. In addition, Chinese automakers degree of internationalization, especially in some of the use of international resources, including R & D resources, technical resources, human resources, brand resources are very great progress; Chinese enterprises to use international resources on how to use the power to accelerate their development of other issues, including all aspects of automotive industry chain has more thought hh These are very encouraging,Discount UGG boots, the auto industry itself is a step by step to find their own path of development, in particular the rise of independent brands, although not a long time but our developed rapidly.
present we are facing so many challenges, I recently felt a bit abroad, found that not only the automotive industry in foreign countries, many large multinational manufacturing companies and non-manufacturing enterprises in R & D assets their total assets account for a large proportion, almost 50%, and R & D personnel accounted for more than 50%. have competitive multinational headquarters, then if a million people, five or six thousand people may belong to R & D personnel, left under the manufacturing sector the difference is not particularly large, including the background providing support personnel, including sales of the brand's staff. On the contrary, some of our most valued manufacturing enterprises how much of our area, we have a number of plants, but this For the truly competitive foreign multinational companies, is not it the most important core assets. For us, we continue to strengthen manufacturing this advantage, we must continue to accumulate the power of research and development, including branding basis, the ultimate advantage of the market, the manufacturing advantages of gradually transformed into our true competitive advantage, brand advantage, this may still have a long way to go, especially in developing this piece.
present in the Chinese automotive market the joint venture brand from the brand, the manufacturing cost may constitute its own brand a lot of pressure. because many joint venture continue to lower manufacturing costs, and even has been gradually approaching the cost of its own brand, which is a great challenge for us, Of course, I believe that our brands can break through this challenge, by means of setting up factories abroad to find suitable products in the market.
Overall, the market in 2007 continued a five-year growth of more than 20%,Bailey UGG boots, almost is more than twice the increase in GDP growth, is a rare opportunity. at this stage our country is a strategic opportunity for the automotive industry is also of strategic opportunities. in such a fast growing, certainly a lot of opportunities. The good news is that we were in the benefits of this growth, our profits faster than the growth of our growth. Of course, the overall profit figure it may be only five or six billion profit level, and many joint ventures enterprises to points, we still need further R & D investment and comprehensive in terms of level of profits now it is still not enough, but after a lot of growth than before, for us to invest more R & D to create the conditions.
mentioned the dominance of the manufacturing sector continued to strengthen, including supporting the strengthening of the system, this will facilitate further and better development. from the A-Class, B Class, C-class cars, including a proportion of imported cars increased , there is a very significant feature upgrades that demand structure, including the upgrading of product structure, there may have about this phenomenon for several reasons.
first grade in the major cities of the car escalated. Second, booming stock market wealth effect caused by a sudden so many people feel that all of a sudden transformed into very rich, buying a car is expected to increase further than the original. Therefore, the growth in imports of cars more than the growth of domestic cars, imported cars more than 30% of the overall growth of China-made cars is 25%. in the overall national economic growth for many years and the growth of the automotive industry, based on the structure of demand in 2007 significantly improved car.