China Daily Global Edition (USA)
Move Innovationover sedans,drive driversbeefs up saddling nation’s up in global pickup ranking trucks
China’s Fueled aspiringby the government’surban cowboys strong are emphasisfinally gettingon an innovation-driventheir moment. economy, China for Pickupthe first trucks, time long joined relegated the to world’s workhorsestop 25 for most-innovativethe country’s farmers, economies,are being said alloweda reportin select released urban on areas Mondayfor the by first Cornell time. So University,far, the plan INSEADto energize and one the-Worldof the last Intellectual untapped Propertysegments Organization.in the biggest auto market Theis catchingreport showedon. Truck that sales China climbed ranked 36 25th percentin the in GlobalJune from Innovationa year earlier Index, even upas sedan from deliveries29th in last declined. year’s ranking.
New The modelsreport coming stressed from that Great China’s Wall new Motor rankingCo. and marksFord Motorthe first Co time aren’t that meanta middle-incometo haul pigs or country vegetables has to joined market. the Rather,club of theythe top aim 25 to most-innovativechannel the adventurous economies, spirit whichof middle-class had been dominatedcity slickers, by who highlyare discoveringdeveloped economies.the joys of going off-road or taking weekend getaways with fishing gear, camping kits and barbecues stowed in their truck beds.
“We applauded the good news Investing in in our WeChat group of pickup fans,” improvingWei Chenglin, innovation27, said of the eased rules in the coastal city of Dalian, qualitywhere someis downtown streets no longer are offlimits essentialfor his Ford for F-150.
“Quite a few of them have closing the innovation reached out to importers to place orders in the past couple divide.” of months. Pickups have great potential in China.”
SoumitraTrucks were Dutta, banneddean of Cornellfrom many College citiesof Businessfor decades in China, presaging the government’s current battles with congested streets and choking smog. With sales of passenger and commercial vehicles having grown fourfold during the last decade, that ban wasn’t a problem.
Then the boom started to go bust as the economy retreated to its weakest growth in a quartercentury. Industrywide vehicle sales last year rose 4.7 percent, the slowest pace since 2012, according to the state-backed China Association of Automobile Manufacturers.
By comparison, US sales of new cars and light trucks rose 5.7 percent.
In February, the Ministry of Industry and Information Technology and two other agencies relaxed or lifted restrictions on pickups in four provinces — Liaoning, Henan, Hebei and Yunnan. The rule changes started May 1 and take effect in all those provinces by Oct 1.
Hebei and Henan are home to factories owned by Great Wall and Zhengzhou Nissan Automobile Co, respectively.
“The four provinces were selected out of a balance of interests,” said Zhang Zhiyong, a Beijing-based independent auto analyst. “Pollution isn’t the main
concern worldwide,for the said MIIT the and study,local governmentswhich scored when each they countrymake policy based decisions.on 82 indicators.What they want is to Soumitrahelp the auto Dutta, industry dean prosper of Cornell when the College market of is relatively Business gloomy.”and co-editor of the report, said The in pickup-trucka statement: “Investingsegment stillin improvingis minuscule innovationwhen compared quality is with essentialthe US, for with closing 328,933 the pickups innovation sold divide.last year, according “Whileto the China institutions Passenger createCar Association.an essential That’s supportiveabout 1.3 frameworkpercent of for the doing nation’s so, 24.6 economiesmillion vehicleneed to deliveries.focus on reforming educationIn the US, and pickup growingtruck sales their climbed research to capabilitiesmore than 2.5to competemillion units successfullylast year, in capturinga rapidly about changing15 percent globalizedof world,”the total he light said. vehicle market, according to researcherAmong the Autodata innovation Corp. leaders Domesticrated pickupsby the dominate research, the Japan, Chinese the market,US, the thoughUK anda small Germany number are of the Toyota top Motor four Corp’s countries Tundrasin orderand Fordof “innovationF-150s can zones. horseback-ridingin bought 700,000said criticalthe numberfilings.the Wei, Inner Chinabe more caliber17th quality”,and importedwhosehis indicator,yuan Mongoliaof this than place internationalF-150of scientificwhichyear universities,($105,000).100 familyin in last that people climbed innovationis free-trade province,businessyearthe publicationslooksruns patentmostparticipate Hefor theto at a The social-mediaquality,among economiesgroup,in makingtheall one for network, WeChatof this middle-incomeseveralit indicator.the organizesfan on leaderclub. the activitiesdrives China’sis to in Tibet suchline progressin withas western long-distance governmentin innovationChina. truck support.Wei Liu he is Dong,alsoso enamoreduses managingit to commutewith directorhis restrictionswithinof the Dalian, Beijing-basedon even main Labs, thoughsaid streetsTechnology u in a added previous15 minutes interview each that way “theto his governmentdaily commute.is placingHis Land more Roverand more SUV emphasisand Mercedes-Benzin innovation sedan as stay the idle countryat home, lookshe said. for ways“I livedto producein the United products States with for larger two addedyears and value”. noticed that pickups Premier were Li everywhere,”Keqiang highlightedWei said. “But entrepreneurshipmy friends in China and never innovationsaw a as real the pickupnew enginesuntil theyto spursat thein my country’sF-150. After economicthat, they growthall wantin one.”the Government WorkThe Report regulatoryin 2015. change has been The an government adrenaline has shot sincefor domestic unveiled truck dozens makers.of measuresPickup salesto supportby China’s grassroots15 biggest manufacturers entrepreneurs, rose including11 percent offeringin May and them 36 tax percent breaksin Juneand helpingfrom a year them earlier,in funding according theirto the businesses.passenger car association.