If Chinese automakers want to
drive forward with their own self-designed models, they need to go beyond just
creating a car using a platform developed by foreign carmakers, and instead
build a completely new car using domestically engineered core parts.
Auto analysts said, however, it is still a long road ahead for domestic car
producers to roll out models that are purely developed by themselves despite the
hype the concept is sweeping the nation.
Several weeks ago, FAW, China's largest carmaker, launched a new so-called
self-designed sedan in Shanghai. The firm claimed the Benteng, which means
"galloping forward" in Chinese, is China's first domestically designed sedan in
the mid-to-high end market.
However, the model, powered by a 2.3-liter or 2.0-liter engine, was developed
on the platform of the Mazda 6, which is also produced by FAW under licensed
production from Japan's Mazda Motor Corp.
Its Benteng model uses core auto parts from Mazda including Mazda 6's engine,
power and transmission systems. But the Chinese firm has made changes to body
design, safety equipment, interior decoration and incorporated a thickened steel
board and over 3,883 welding spots over the past three years developing the
Benteng.
But the Benteng is not alone. SAIC, China's second largest carmaker, will
also roll out its first self-branded models based on the Rover 25 and Rover 75
after it bought intellectual property rights from the failed British MG Rover.
More and more models are being labeled as self-designed but they share a lot
in common with various home-produced models introduced by foreign carmakers
including General Motors Corp, Volkswagen, Toyota and Ford.
"Strictly speaking, models like Benteng could not be called a self-developed
model as its core spare parts were not made by ourselves (domestic carmakers),"
said Ma Jun, vice professor of the automotive college at Shanghai-based Tongji
University.
"The (so-called) self-development is actually a complete knocked down model
with little changes to meet local demand," he pointed out.
He also pointed out that Chinese automakers should acquire "technology in car
design, modules, brands as well as spare parts," but it "is difficult to achieve
for the toddling Chinese auto industry now."
Last year, China's vehicle sales surpassed Japan to rank as the world's
second largest auto market. But over 80 percent of the technology, especially
engines and transmission systems were made by foreign carmakers.
Domestic state-owned carmakers including FAW, SAIC, Dongfeng Automotive
Group, Chang'an Auto and Jianghuai Auto, all plan to launch models under their
name plates to echo the government's call to develop self-designed models in the
11th Five-Year Plan starting this year.
Zhang Xin, an auto analyst at Guotai Jun'an Securities Co Ltd, said
self-development doesn't mean that one invents a model from scratch.
"Learning from advanced technology would help to shorten the R&D efforts,
avoid repeating the mistakes and it's not a matter of patent infringement or
copyright dispute either. But we are also encouraging more technology innovation
to boost the development of the whole industry over the long term," Zhang said.
Chinese state-owned automakers used to rely on models introduced by foreign
partners to lower the R&D costs and make profit more quickly.
"China's auto industry has spent the past 10 years to achieve development
that took foreign counterparts 30 years to do. We need time to absorb the
technology and it may be another five to 10 years before we roll out a genuine
self-developed model," Ma said.
Between 1985 and 2005, the Chinese domestic automakers made 15,686 patent
applications, but they represented only one-fortieth of that in the information
technology industry.
But Chinese carmakers are catching up quickly.
In 2004, Chang'an Group registered 106 patents, surpassing the combined
number over the past 10 years. Last year, 160 patents were registered.
SAIC has invested 1.8 billion yuan (US$225 million) to expand its auto
R&D institute to produce hybrid vehicles and fuel cell models.
Zhejiang Province-based Geely automobile Co Ltd, one of China's leading
private carmakers, together with Brilliance China Automotive Holding Ltd, Chery
Automobile Co Ltd and BYD Automobile Co Ltd has already developed engines using
their own technology.
The technology of an engine, the most essential core part in a car, used to
be controlled by foreign counterparts and the high royalty fees created a
roadblock to reduce the auto costs on home-made models.
Geely, which specializes in producing small vehicles and is China's leading
private carmaker, has invested more than 100 million yuan to develop engines
with the highly advanced CVVT - continuously variable valve timing - technology
that is able to generate 140 horsepowers, on par with Toyota's new CVVT engine.
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