Stock ratio limits the last line of defense in the new energy automotive industry

The huge prospects of the new energy automobile market in China and the government’s policy support for the power have led many new energy vehicle and component giants to stare at China. Last year, Van Ander, then president of Volkswagen China, revealed that in the future, Dalian will produce Volkswagen's electric vehicle parts. This means that in addition to Volkswagen FAW Engine (Dalian) Co., Ltd. and Volkswagen Automatic Transmission (Dalian) Co., Ltd., Dalian will build a new Volkswagen factory. “Dalian has a policy tilt on high-tech investment. We are very much in agreement and we are willing to introduce new technologies here. I believe Dalian will become a base for China in this regard.”

Like the general public, almost all multinational giants, be it Mercedes-Benz, BMW, General Motors, Ford, or Nissan, have formulated development plans or sales targets in the domestic new energy automobile market. At the same time, Japan's small and medium-sized component manufacturers have also accelerated the pace of transferring production lines to China, including many core new energy component manufacturers and projects. For a time, China’s new energy auto market has become a deer.

However, in early April, the National Development and Reform Commission, together with the Ministry of Commerce and other departments, released the "Foreign Investment Industry Guidance Catalog" draft, which has discounted the dreams of foreign new energy component manufacturers. The Opinions stipulate that the proportion of foreign capital in key energy component projects for new energy vehicles should not exceed 50%. The list of new energy vehicle core components listed in the Opinions covers a wide range of components, including power batteries, cathode materials, separators, battery management systems, motor management systems, electronic control integration, drive motors, drive systems, electric air conditioning, electric brakes, and electric power assistance. Steering, idle start and stop. It also lists specific standards for various components, such as energy-type power batteries (energy density ≥110Wh/kg, cycle life ≥2000 times), battery cathode materials (specific capacity ≥150mAh/g, cycle life 2000 times no less than 80% of initial discharge capacity), battery separator (thickness 15 to 40 μm, porosity 40% to 60%), and the like.

This is the first time that domestic competent authorities have explicitly specified the equity ratio of joint ventures for key components of new energy vehicles. Previously, there are no restrictions on the share ratio of many domestic automobile core parts and components companies. For example, Volkswagen's Dalian DSG transmission plant is wholly owned by Volkswagen. Volkswagen FAW (Dalian) Engine Co., Ltd. and Volkswagen FAW Platform Components Co., Ltd. are all controlled by the public 60%. The equity. Including Bosch, Delphi and other multinational auto parts giants also have many wholly-owned or holding companies.

For the draft, the parties have different opinions. Fu Yuwu, executive vice chairman and secretary-general of the Chinese Society of Automotive Engineers, believes that setting up an equity ratio limit is a good thing. If you completely liberalize the share ratio, there will be no development opportunities for domestic key components such as electric control, motors, and control systems. However, most foreign OEMs and component manufacturers believe that although the potential for new energy vehicles is large, the current profitability prospects are not clear. In this situation, policies should be encouraged rather than limited. There are also parts manufacturers that this will force them to transfer production projects abroad, and ultimately to China's new energy automotive industry, causing losses.

The reason for the disparity in attitude is that the equity ratio restriction has affected the profit income of all shareholders. In recent years, with the blowout of the Chinese automobile market, the Chinese market has become a profitable cow for multinational car companies and parts and components companies. Taking component manufacturers as an example, Bosch's sales in China reached more than 30 billion yuan in 2010. Taking the auto manufacturer as an example, the Volkswagen Group's 2010 financial report showed that the company's net profit reached 6.84 billion euros, equivalent to approximately 68.4 billion yuan. Although the report has not been consolidated, according to statistics, the profit from the two South China Volkswagen vehicle companies reached RMB 34 billion, which does not include the profitability of parts procurement and imported vehicle sales. If the share-to-equity relationship changes, the financial statements of multinational companies will change significantly.

In the historical process of joint venture development, “market-for-technology” has not worked, and as a result, markets and profits have been eliminated, and few technologies have been absorbed. The prohibition of wholly foreign-owned companies and the limitation of the share ratio of new energy auto parts and components companies are actually intended to prevent the old road of the former full-vehicle joint venture.

History shows that independent research and development is the right way. China's new energy vehicle development strategy mentioned that by 2015, the domestic new energy vehicle market will reach 1.5 million. With market opportunities, accelerating domestic independent research and development of new energy technologies is an insurmountable stage for the development of new energy automotive industry. Although the share ratio restriction cannot completely prevent technological monopolies, it avoids certain risks and is precisely the independent research and development of new energy vehicles. Provides development time and market space.