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Cai Ronghua, deputy director (first-class inspector) of the Industrial Development Department of the National Development and Reform Commission, said at the 2020 International Forum on the Development of China's Automobile Industry that this year's automobile industry is expected to perform better than expected. it is expected to return to last year's overall level.

Cai Ronghua said that the rapid resumption of work and production in the automobile industry has promoted China's current economic growth. it is expected that the automobile industry will perform better than expected for the whole year and is expected to return to the overall level of last year, and may be a little worse in terms of quantity, production and sales. however, marketing income, operating income, total profits and growth are likely to reach last year's level.

In addition, Cai Ronghua also pointed out that China's automobile production and sales account for about 30% of the world, and the automobile competition is becoming increasingly fierce, but the problems of blind investment and relatively low capacity utilization have not been effectively solved. Zombie enterprises and invalid production capacity occupy a large number of factor resources, so we must speed up market-oriented construction, rule of law management, and strengthen regulatory accountability.

The so-called "zombie car enterprises" mainly refer to the enterprises that have the qualification of automobile production, but lack the ability to keep pace with the times, stop production or semi-stop production for a long time, and can not maintain normal market operation. For the domestic auto market, after two consecutive years of decline, the originally difficult car manufacturers are facing the risk of closure. According to the list of the worst car companies compiled before, there are many "zombie car companies".

Among the nearly 40 car companies with sales of less than 1,000 vehicles, including Haima Automobile, Huatai Automobile, Zhongtai Automobile, Cheetah Automobile, Lifan Automobile, Dongfeng Renault, Dongfeng Yulong, Zhidou Electric, Tianjin FAW and other car companies, among them, there is no lack of established independent car brands, as well as emerging new car-building brands.

For example, Huatai Automobile, which was founded in December 2000, is an independent brand car company with new energy vehicles, traditional cars and auto parts as its main business, but the problems of automobile production, marketing and operation are plagued by funds. the news of arrears of employees' wages and payment to distribution suppliers also emerge one after another. In October last year, Huatai Motor was exposed to the news of bankruptcy liquidation at the end of the year, and then Huatai Motor publicly refuted the rumor, and there was no bankruptcy liquidation at the end of the year, but there was very little news about Huatai Automobile in 2020, without sales data. under the background of factory shutdown and dealer suspension, Huatai actually exists in name only.

Changfeng Cheetah, which was first founded in 1950, was transformed into Changfeng (Group) Co., Ltd in October 1996. it also introduced Mitsubishi Pajero light off-road vehicle manufacturing technology in 1995, and became the largest SUV car manufacturer in China in 2005. However, due to the outdated technology can not keep up with the development of the market, cheetah car sales continue to decline, with total sales of only 33200 in 2019 and 349 in the first seven months of 2020. Cheetah is in operational difficulties, its factories are also shut down, dealers refuse to provide services, "zombie car companies" sit down.

Unlike these car companies, Dongfeng Renault is not nominally a "zombie car company" and directly chose to withdraw from the market because of the persistent downturn in sales. Founded in 2013, Dongfeng Renault is a young joint venture brand compared to Dragon Dongfeng Nissan, but due to development difficulties caused by falling sales, in April this year, Renault decided to transfer its shares in Dongfeng Renault to Dongfeng Automobile Group. Dongfeng Renault also got delisted.

Most of the autonomous car companies whose sales have fallen sharply have collapsed with the decline of the overall market and the implementation of the sixth national emission. For example, BAIC Yinxiang, Speed Automobile, Dongfeng Yulong, Haima Motor, Mahayana Motor and so on, due to the rapid decline in sales, factory production stagnation, business operation encountered serious challenges.

In terms of the new power of car-building, there is no sales data for space-time electric, lead car, electric coffee car, Zhidou electric, etc., along with the "exit" of Sailin Automobile, Baiteng Automobile, and Boxun Automobile, the new force of building cars with Internet car-building slogans and crazy money-burning, also entered the knockout stage ahead of time.

Since 2020, the news of weak brands shutting down and closing down has been heard constantly, and the news of being acquired has also been heard constantly. In the environment of stock competition, brands without core technology and innovation consciousness are gradually merged or eliminated, which has become history. For the automobile industry, with the improvement of manufacturing level and stock competition, more and more "zombie car enterprises" will gradually emerge, and "zombie car enterprises" will also become a "stumbling block" to the development of the industry.

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