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Blue paper says Chinese auto industry uncompetitive

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2008-04-16 16:05

China still lags behind developed countries in terms of competitiveness of its auto industry, despite the fact that the sector is undergoing transformation, according to a blue paper released in Beijing, the 21st Century Business Herald reported today.

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The China Auto Industry Blue Paper, compiled by the Development Research Center of the State Council and the Society of Automotive Engineers of China, also said China's auto industry is speeding up independent innovations.

Internationally, China's auto industry scores only 47.36, assuming developed countries are at 100 scores maximally.

China's homegrown auto brands and auto-related patents rated an especially poor 24 and 15 scores respectively, suggesting China hasn't effectively transformed its inputs in auto innovation into production results.

But China is bridging the gap with developed countries in auto trade competitiveness, according to the report.

Meanwhile, Chinese automakers face significant problems in research and development, particularly in the auto electronic control and engine assembly technologies.

"We are in severe shortage of core technologies," said Fu Yuwu, secretary general of the Society of Automotive Engineers.

"Chinese automakers perform well in auto body research and development," Yu said. But they are still too weak to develop and use new technologies, according to the report.

"Total demand for anti-locking braking systems (ABS) in 2007 in China reached 4 million units, but only 100,000 were provided by domestic enterprises," Fu said.

In addition, the electronic stability program (ESP), which has higher technology requirements than ABS, has come out, signaling an expanding auto technology gap with developed countries, according to Fu.

Currently, foreign auto parts companies dominate many core technologies, such as high pressure common rail fuel injection systems and pump nozzles. Additionally, no Chinese companies rank among the world's top 100 auto parts club, said Fu.

Fu added that collaboration among auto parts manufacturers, universities and research institutes might be one way of getting core technologies.

This year, an automotive electronics union will be formed by the auto engineering society to reduce the gap with developed countries.