How do pharmaceutical machinery catch medical reform opportunities? Wenzhou Pharmaceutical Alliance markedly effective

Why are the prices of Chinese auto brands like Geely and Chery significantly lower than those of joint-venture models in the same class? Some people believe it's because these independent brands have weaker brand recognition, which leads to lower pricing. Others suggest that it's a result of aggressive pricing strategies aimed at capturing market share through price wars. However, a key factor lies in the fact that Geely and other independent manufacturers have increasingly developed core technologies with independent intellectual property rights. This allows them to reduce costs by avoiding high patent licensing fees and technology transfer charges typically paid to foreign partners. As a result, they can offer competitive pricing without compromising on quality. During a recent visit to Zhejiang Geely Group, reporters were particularly impressed by the company’s independently developed plastic intake manifold. This innovation significantly reduces engine weight while improving fuel efficiency. An Zhihui, Vice President of Geely Holding Group and General Manager of Zhejiang Geely Automobile Co., Ltd., explained that in many joint-venture companies, similar components are controlled by foreign entities, with unit prices reaching around 1,300 yuan. In contrast, Geely’s own R&D and production of this part costs less than 200 yuan. “Only by mastering our own core technologies can we achieve cost control and procurement independence,” he said. Geely’s possession of independent core technologies goes far beyond just the plastic intake manifold. At the recently held Shanghai International Auto Show, the company showcased nine engine models featuring advanced technologies such as turbocharging, direct injection, common rail systems, and integrated CVVT and DCVVT technologies. The all-aluminum cylinder engine JL4G18, developed independently by Geely, has broken through China’s long-standing technological bottlenecks. With a maximum power output of 103 kW and a power density of 57.2 kW/L, it outperforms many 2.0-liter engines used by joint-venture brands in China. When it comes to the technical challenges faced by domestic automakers—particularly in automatic transmissions—An Zhihui pointed out that the profit margin for an automatic transmission is comparable to that of an entire vehicle. Geely’s breakthroughs in this area have laid a solid foundation for cost control. At the Shanghai Auto Show, Geely introduced China’s first self-developed dual-clutch automatic transmission, the 7DCT, featuring seven forward gears. The company also displayed two other internally developed gearboxes. Additionally, Geely recently acquired DSI, the second-largest automotive transmission plant in the world. DSI is capable of producing a wide range of transmissions, from low-torque to high-torque models. According to Geely’s plan, the company will launch large-displacement engines and rear-wheel-drive models. With DSI under its control, Geely aims to strengthen its full-range automatic transmission capabilities and challenge the foreign monopoly on transmission pricing in the Chinese market. Previously, sources from the China Automotive Industry Council revealed that the selling price of new cars is continuously decreasing, and the main profit sources for 4S dealers now include auto insurance, after-sales services, and maintenance. A long-term issue with joint-venture brands is their reliance on foreign-controlled core components, giving foreign parties significant pricing power. It has long been observed that the value of dismantled parts from old vehicles often exceeds the value of the car itself. In the long run, this not only harms consumer interests but also allows foreign companies to continue reaping substantial profits from the Chinese automotive aftermarket. It is worth noting that joint-ventures are increasingly launching their own brands. From a national perspective, this trend could be beneficial if it helps China gain control over core technologies. However, it raises important questions: How much real control do these joint-venture brands have over core component technologies, procurement channels, and pricing? While these brands may be jointly owned by Chinese and foreign companies, if the foreign partner still dominates key technologies and pricing, the so-called "independent brand" may simply serve the interests of the foreign side rather than the local market.

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