Subaru's global sales and domestic necessity analysis in China
Biogas Generator Home,Marine Generator Set,Factory Lpg Generator,Portable Lpg Generator Bison Machinery Co., Ltd. , http://www.tzgeneratores.com
In fiscal 2011 (April 2010 to March 2011), benefiting from the high sales growth in the United States and China, its global sales increased by 16.7% to 657,000 vehicles, which not only led to high sales volume, but also contributed to Fuji Heavy Industries (Subaru's Manufacturers) Net sales for the fiscal year reached 1.58 trillion yen and net profit reached 50.3 billion yen, both of which hit a new high since Fujitsu Heavy Industries released its corresponding information in fiscal 1999.
In the fiscal year 2001-2011, Subaru's sales in Japan showed a downward trend, while sales in other markets showed an upward trend.
Necessity of domestic production in China In China, Subaru and Chery discussed the news of a joint venture, which began in 2010 (which was confirmed by Chery at the end of the year). As of now (at the beginning of November 2011), although there is news that the joint venture project has actually obtained The Development and Reform Commission approved, but neither of the joint venture parties issued the approved news. For Subaru, whether the joint venture project can be approved to a large extent determines whether its domestic production plan in China can be achieved.
Subaru's manufacturing company, Fuji Heavy Industries, has a strong determination to make Subaru in China. This can be seen from the multiple statements made by the senior executives of Fuji Heavy Industries and Subaru, but it also stems from some hard factors:
First, according to Subaru's plans for the next five years, FY2016 (April 2015 - March 2016) Subaru's global annual sales volume will reach 900,000 units, of which sales in China will reach 180,000 units. In FY2011, its sales in China were only 57,000 units (up 62.9% year-on-year). To achieve the goal of 180,000 vehicles, domestic production is an inevitable choice.
Second, Subaru currently has only three vehicle production plants in the world, two of which are located in Gunma Prefecture, Japan and one in Lafayette, Indiana, USA. The two factories in Gunma Prefecture in Japan produce passenger cars as well as mini vehicles and export them in large quantities. Gunma Prefecture is located close to Fukushima Prefecture, the core area of ​​Japan's nuclear radiation this year. The production of the Subaru Gunma Prefecture plant is also affected by the 311 earthquake, the tsunami and subsequent nuclear radiation in Japan, and production resumes in October this year. The US plant only produces passenger cars, and the plant not only produces Subaru cars, but also Toyota Camry. For Subaru, the establishment of a production base outside Japan and the United States is an important choice for achieving its global sales target.
Third, Subaru, which only sells imported cars in China, is coveted because of its scale and future potential. Other major Japanese car makers Toyota, Honda, Nissan, Suzuki, Mazda, Mitsubishi, Isuzu and Hino have all made products in China. The appreciation of the yen and the high tariffs (25%) sold in the form of imported vehicles in China make the Subaru Motors sell at a higher price. At the same time, due to imported vehicles, the delivery time is relatively long, generally 5-6 weeks, and some even two. Three months, these have reduced Subaru's competitiveness to some extent.
Fourth, other companies (such as Land Rover, Infiniti, and Renault) that sell SUVs (Subaru's flagship products in China) in imported form have increased the introduction of new products in China, which has made Subaru even more fiercely competitive. At the same time, these imported car companies have repeatedly been exposed to domestic production plans in China, although not all true, but these are forcing the real plan to domestically produced Subaru to "get ahead of Others," preemptive competitors and domestic.