Learn from The Chinese and Indian Auto Industry Model

[dprox]

In the case of China: as with tools, shoes, and toys -- so with cars.

There is a range of quality in Chinese-made goods.

Top quality is found in authentic goods, manufactured under license for northern hemisphere MNCs. The consumer has to pay a high price, covering production costs, markups, taxes, etc.

"Beta" quality is found in licensed goods produced on the sly during "break time". Licensees remit nothing to their mother companies and the selling price drops even lower with smuggling.

When it comes to indigenous Chinese car brands, you can speak neither of original quality, nor of "beta" quality, since they are not licensed by any mainstream automaker.

These are independent carmakers who sell cheap by doing away with R&D and product development costs through reverse-engineering and outright copying. They also establish and squirrel away their own tongpats, instead of remitting percentages to a mother company. The downside is that for the sake of "maramihan sa mababa presyo" (aka "Chinese style marketing"), the quality of materials and durability is really, I mean REALLY low, at the moment.

In other words, PROC car entrepreneurs give waaay too much priority to economics of scale and product appearance than product quality. They will likely be riding on this business model until they feel secure about churning out Korean-quality, Japanese-quality, and German quality cars.

We test-drove a couple of them in the last MIAS. The first one was OK, although it felt like driving a toy; but the electrical system burned out on the second -- right on ignition. So, you have to be REALLY REALLY lucky for your 2008 Chinese car not to run into major breakdowns in the first two years of operation. You will get value for money on Chinese vehicles maybe only after, say, eight to ten years from now.

One way to measure the quality of Chinese cars is to monitor their junkyard volumes in the next five years. If I'm wrong about this, then the mainstream automakers have reason to worry.

Now, I wonder how the Tata Nano compares. I'd like to test drive one.
.

[jpdm]

ang galing nung X5 clone...

sobra gaya...

BMW will sue them if they sell it outside China.

The Chinese carmaker said the govt allowed them to make the X5 clone.

hahaha

Yan ang gusto kong gobyerno...

Support local industry

hehe

Ok lang ang mang-gaya to a certain extent. Admittedly, the auto industry is a mature industry. Marami ng nauna.

Cars/vehicles a.k.a horseless carriage were first developed in France. Then Germany, then then US.. Western Europe followed. See the auto history below:

The first self-propelled car was built by Nicolas Cugnot in 1769.
In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. This was subsequently used by him to develop the world’s first vehicle to run on such an engine, one that used a mixture of hydrogen and oxygen to generate energy.

In 1860 thereafter, Jean Joseph Etienne Lenoir built the first successful two-stroke gas driven engine.

In 1885 the four stroke engine was devised. Gottileb Damlier and Nicolas Otto worked together.Daimler created his own engines which he used both for cars and for the first four wheel horseless carriage. Karl Benz, was in the process of creating his own advanced tri-cycle which proved to be the first true car. This car first saw the light of the day in 1886.

The season of experiments continued across the seas in the United States where Henry Ford began work on a horseless carriage in 1890. He went several steps forward and in 1896, completed his first car, the Quadricycle in 1896. This was an automobile powered by a two cylinder gasoline engine. The Ford Motor Company was launched in 1903 and in 1908 he catapulted his vehicle, Model T Ford to the pinnacle of fame.

Bakit, wala dito Britain and Italy?

Anyway, In Asia, we have Japan (started in 1902-now, no.1 global producer), India (started 1947, now no.11 global producer), China (started 1949-now no.3 global producer, Korea (started in 1955-now no.5 global producer). , Malaysia (1960-actual 1985, now largest producer in ASEAN).

and our beloved Philippines (the automotive jackass of Asia led by a jackass government and insatiable and ravenous appetite of Pinoys on IMPORTS....

Gumaya lahat yan sa Western auto industry puwera tayo. Kasi tayo kutsero, ahente, mekaniko at parokyano nila....


Anyway, Lahat ng nabanggit either, nag-licensing agreement, technical assistance, joint venture, re-badging etc... Nagbayad sa kinopyahan.

Ang China, gusto libre. Yung ang mali.

FMC halos nandun na sa stage na ito with Anfra using the powertrain and parts of Mazda until the jackass philippine government entered the picture. Warak na naman.

At least, ang gobyerno ng China, malinaw ang direksyon. Lumaban sa mga giants (in 2006, China is projected to become the second largest producer after Japan).

Ang isang bansa, kung baga, kung sasabak sa labanan para mag-survive, maghanda. Ang masama, di pa nagsisimula suntukan, umaayaw na agad, hindi lumalaban.

Laban. matalo man, at least lumaban pa rin.

Buhay pa rin an native assemblers! So laban! and learn from these countries....

[dprox]

History is replete with economic and technical espionage and copying (aka "piracy").
Even the young Bill Gates pirated the original a computer operating system from a small shop in Seattle and branded it later as MicroSoft when he made his first major business deal (with IBM, I think, for the IBM PC).

In the car industry, spying is endemic. Look at the models and trends. Why do you think cars in the same class generally look alike?

Sa Pilipinas nga, pag may isang nag-fishballs, fishballs na rin ang buong barangay. Doon sa Parma, Italy, halos lahat ng domestic galing Mabini, Batangas.

HOWEVER ...

The way to avoid copying is to DESIGN FROM WITHIN. LET THE FORM FOLLOW THE INTENDED HUMAN FUNCTIONS. LET THE SHAPE EMERGE FROM THE SCIENCE AND TECHNOLOGY. That means,

(1) We have to define WHAT THE USERS NEED AND WANT. We can even go a step beyond that and address their unknown and unmet needs in vehicles.

(2) We need to incorporate THE LATEST TECHNOLOGIES that are DOABLE under the given circumstances.

(3) We can improve on what others have already accomplished.

This is the way to be original.

[TambayBlues]

Found this on the web, download nyo na lang. Maybe we might learn something from it and it might even be useful if anyone here does get the chance to go to the mainland for personal or professional reasons. Who knows it might be the start of a good career in espionage. JK

Illustrated English-Chinese Dictionary of Automotive Engineering
http://**********.com/files/93317702/Eng-Chin_Dict.rar


password : uztranslations

[pitbullz]

pirates? arrr.....

[Jun aka Pekto]

OT
This has nothing to do with the auto industry discussion. I just need clarification because the Bill Gates part sounds like a serious accusation.

History is replete with economic and technical espionage and copying (aka "piracy").
Even the young Bill Gates pirated the original a computer operating system from a small shop in Seattle and branded it later as MicroSoft when he made his first major business deal (with IBM, I think, for the IBM PC).

Did Bill Gates really pirate that OS? Not according to this:

http://inventors.about.com/library/weekly/aa033099.htm

It says he bought the OS (QDOS) for $50k which he then presented to IBM. Bill Gates persuaded IBM to let him keep the rights, allowing him to sell the OS (QDOS) to other computer makers.

There may have been some greed in there. But by the book, I didin't see any wrongdoing. He saw an opportunity and seized it.

Ok. Back to cars......

[wildthing]

that is not GREED, that is MARKETING.

As such if we really want to succede in the cars....we also need to have agressive MARKETING strategy.

[architect]

*jun aka Pekto

The story from that site is the generally accepted one by the industry although some versions have added details such as Kildall supposedly opting to fly a kite instead of meeting up with the IBM guys. Kildall passed away a few years ago, relegated to a mere footnote instead of the place he truly deserves in computing history.

Bill Gates' programming skills are also subject to endless debates but what can't be argued is his business savvy. This was quite evident early on as manifested in the IBM deal. But in terms of sheer technical abilities, Kildall and Paterson were way ahead of Gates yet we all know how things went for each of them.

I guess you can say there is a lesson there somewhere for all of us.

[dprox]

I admit the term "pirated" might have been too strong, since it could be interpreted in its full legal sense. The conversational meaning of piracy is when you present yourself as author, when in fact the real author was somebody else ("plagiarism" is a synonym) - and you make a killing out of it.

I was using the word "piracy" in the same colloquial vein as the movie "Pirates of Silicon Valley" does. I guess only a handful of tsikoteers have seen it. View it here (esp 48:30 to 53:30) ~ [ame="http://video.google.com/videoplay?docid=-1552555273778978142"]Pirates_of_Silicon_Valley_(1999).avi[/ame]

Some pirates are just kinder than others. I hope this helps us gain insights on originality, intellectual property, moral attribution/acknowledgement. Or you can just enjoy the movie. Bring out the popcorn and drinks.

[Jun aka Pekto]

I admit the term "pirated" might have been too strong, since it could be interpreted in its full legal sense. The conversational meaning of piracy is when you present yourself as author, when in fact the real author was somebody else ("plagiarism" is a synonym) - and you make a killing out of it.

I was using the word "piracy" in the same colloquial vein as the movie "Pirates of Silicon Valley" does. I guess only a handful of tsikoteers have seen it. View it here (esp 48:30 to 53:30) ~ Pirates_of_Silicon_Valley_(1999).avi

Some pirates are just kinder than others. I hope this helps us gain insights on originality, intellectual property, moral attribution/acknowledgement. Or you can just enjoy the movie. Bring out the popcorn and drinks.

Understood. I just wanted the clarification and I got it. Sure thing, Boss.