With the continuous development of auto enterprises on the Chinese market, the relatively mature first-tier and second-tier markets have gradually become saturated, and more and more companies have begun to choose to explore the market. Xinjiang, which is located in Xiqiao, has become a new investment target in the industry. Up to now, there have been seven national auto industry enterprises in Xinjiang, and the auto production capacity is about 20,000. One vehicle factory, one passenger car modification plant, and five special vehicle conversion plants. What are the reasons for attracting many auto manufacturers to build factories in Xinjiang?
Enjoy policy preferences and strive to achieve a win-win situation
With the deepening of the development of the western region, the economy of Xinjiang has developed rapidly. Many car companies looked to the wind and began to shift their planning focus to the west. Nowadays, Xinjiang has become a hotly contested place for auto companies.
“The major car companies are eager to choose to set up factories in Xinjiang. The emphasis is on many local preferential policies.†Mr. Ma, Service Manager of China National Heavy Duty Truck Group Jining Commercial Vehicle Co., Ltd. Urumqi Branch, said that at present, the national policy encourages car companies in the west Build factories and give preferential policies and financial support for construction land, taxation, technology upgrades, new product research and development, etc.
“Not only that, but the local government is also helping companies understand the local situation, supervise project progress, and provide complete living facilities according to their needs during the process of car companies building factories. These preferential policies cannot be realized in the mainland market,†said Mr. Ma. .
Everything is complementary. The car companies are getting good. For Xinjiang, the most direct effect is to get taxes and employment.
It is understood that a car company is expected to pay about several billion yuan in tax revenue in the first five years; after the completion of the second phase, the estimated tax revenue is about 2 billion yuan, which is equivalent to 20% of the current tax revenue in the local development zone. Local investment in building a factory, then the increase in tax revenue will be a very significant figure.
Not only that, the automotive industry will become a sharp tool for stimulating Xinjiang's economy with its long industrial chain and leading role in logistics, finance, and advertising industries.
“As a traditional industry, the automotive industry involves raw materials, electronics, plastics, composite materials, and so on, and has a great pulling effect on the industry. At the same time, automobile sales also involve a series of contents such as automotive finance, decoration, and services, and it can also stimulate regional production. The development of the company, said Jin Guozhi, general manager of Urumqi Xinhongzhi Automobile Trading Co., Ltd.
In addition, he believes that car companies can also promote the development of related parts and components industry. "After the auto manufacturers set up factories in Xinjiang, if they provide related core parts and components, the production cost will be increased. Therefore, the parts and components companies will also follow the car manufacturers to set up factories in the local area, which will drive the development of the entire industry chain. If it can really become a reality, it will solve the employment problems of many people in Xinjiang," said Jin Guozhi.
A research result shows that the automobile industry is a 1:10 industry, that is, the output of a unit of the automobile industry can drive the output of the entire national economy to increase by 10 units. This huge multiplier effect is unmatched by any industry. "As a result, car manufacturers in Xinjiang have become a win-win move. They not only completed an important strategic layout for their own development, but also responded to the government's western development industry policy and contributed to the balanced development of industries in the western region." Jin Guozhi said.
Focus on Xinjiang and overseas market potential
The reason why car companies have come to Xinjiang to invest in factories is that they saw the potential of Xinjiang's car consumption market in the coming years.
"As Xinjiang has a large number of infrastructure and aid projects to start construction, the local automobile market is in a period of rapid development, the demand for automobiles will also increase significantly, and investment in construction will usher in the best time." Xinjiang Wanguo Auto Sales & Service Co., Ltd. Yu Rong, the manager, told the reporter: “In the past, manufacturers were producing from the mainland and then started to Xinjiang. The cost of the road is very high. One kilometer is about 3.5 to 4 yuan. If we build a factory in Xinjiang, we can transport the whole parts over. Assembled in Xinjiang, in this way, a car can save almost 5,000 yuan. On the
other hand, we are closer to the Xinjiang market and can assemble vehicles according to the needs of users."
In addition, another important factor that attracts auto makers to deploy Xinjiang is the continued strong demand for autos in the Central Asian market. It is understood that in 2011, Xinjiang's auto exports were 10,000, an increase of 73% year-on-year; the export value was 343 million US dollars, an increase of 77% year-on-year. "Xinjiang borders many countries, has many export ports, and has developed export trade. There are several state-level ports along the border, and it has the advantage of opening up international major highways to the west. It invests in the Xinjiang automobile industry and can radiate west to Central Asia and West Asia. The south can be extended to the South Asian market, and the east can have the western China market, which is the main reason why many automobile manufacturers have settled down one after another.†said Ma Ming, deputy general manager of Xinjiang Yixin International Economic and Technical Cooperation Co., Ltd.
“At the same time, Xinjiang is bordered by eight countries, including Russia and Kazakhstan. Large-scale urbanization and infrastructure construction drive up the demand for cars in neighboring countries, which also provides objective conditions for Xinjiang to develop the automobile industry,†said Ma Ming.
Land value-added space is inestimable
For heavy truck companies, the low cost of land acquisition does not only exist as a preferential policy for the Xinjiang government to stimulate heavy truck companies to invest in and build factories, but is also a long-term investment for heavy truck companies looking at the future. "Getting to the ground means stabilizing your profits without losing money," said a heavy truck brand dealer.
This kind of "enhanced appreciation" is not groundless. The dealer said: “The current preferential policy enjoyed by truck enterprises in Xinjiang is that car companies must first transfer funds from Xinjiang to local banks before they can get the land at low cost. The assets of auto companies will rise in value with the development of Xinjiang in a few years. Therefore, even if the auto companies' plants in Xinjiang did not bring much profits, the appreciation of the land site will be enough to make a fortune."
The dealer also believes that the establishment of a factory in Xinjiang will have a similar effect on the local economy as the “real estate economy†that has clearly emerged in recent years, and will ultimately benefit the auto companies in the way of appreciation of the land.
In addition, according to industry insiders, in the automotive industry in China, there is currently a phenomenon of car prices. Some auto companies have signed investment and development agreements with local governments. After low-cost land acquisition, they do not build factories in the country, and they do not start factories, or the actual production capacity is lower than the planned production capacity. Investment in factories is only a pretext, and earning money is the real problem. purpose.
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