China's weakest point in the electric vehicle industry chain is vehicle manufacturing, with the difficulty lying in the need to support and improve the entire industrial chain.
How to do that?
In the view of Guotai Junan Securities, perhaps looking back at the rise of China’s independent mobile phone brands can give us a little inspiration and inspiration.
The turning point in China's mobile phone industry actually appeared with the entry of Apple in 2011.
Before that, Chinese mobile phone brands such as Bird and Amoi were short-lived due to the lack of advanced technology and mature industry chain.
On the surface, Apple has made hundreds of millions of profits using China’s cheap labor and a complete industrial chain, but it has also made a huge contribution to the rise of China ’s own mobile phone brand.
1. Apple has built China's mobile phone industry chain for other mobile phone companies with its strong supply chain management capabilities.
Before 2011, China had a relatively complete mobile phone industry chain, but it has not been effectively organized.
Foxconn foundry and China's huge market demand, combined with Apple's management capabilities, have brought China's mobile phone industry chain to a higher level.
2. Apple has cultivated a lot of demand for smart phones for the domestic market.
Through the popularity of Apple's mobile phones, the demand for the domestic smart phone industry has exploded. First, domestic mobile phones and the industrial chain were provided with opportunities to grow larger and stronger, and finally began to import substitution.
Thanks to this, we can see the names of Huawei, OPPO, VIVO, Xiaomi and other companies on the global mobile phone list today.
If Tesla really localizes all parts as promised, can we expect it to benefit local electric vehicle companies in the long run, just like the rooting of Apple's industrial chain in China?
Musk said last year, "By the end of 2020, all parts of the Model 3 made in China will be fully produced in China!"
Chinese companies are stepping into Tesla's core supply chain step by step.
Even before that, as Tesla's electric vehicle production capacity in China gradually rolls out, Tesla's Model 3 batteries, motors and parts housings will also generate strong demand for raw materials in the industrial chain.
More on Cars
