China’s rise to become a global force in automobile manufacturing was the result of three decades of deliberate government policy, investment and technology transfer—not an overnight success, Chief Executive Officer of Zonda Tec Ghana, Yang Yang, has said.
Speaking on the Citi Breakfast Show on Friday, July 31, Madam Yang said China’s automotive industry began its transformation about 30 years ago when the government introduced policies to attract leading global manufacturers while building local technical capacity.
“China took the auto industry seriously 30 years ago,” she said.
According to her, the Chinese government encouraged major international car manufacturers, including Toyota and Volkswagen, to establish operations in the country by offering incentives such as free land, tax holidays and access to the domestic market.
The condition was they send their engineers to China to train our engineers, and we give them 15 years tax-free,” she explained.
Madam Yang said China’s emergence as a leading producer of automobiles was the product of long-term planning rather than rapid industrial growth.
It’s like everybody said, ‘Oh wow, how come China’s auto industry got prosperous in one day?’ No, it’s not in one day. It’s 30 years,” she said.
She noted that despite the presence of established global brands in China, the government later shifted its focus towards developing indigenous manufacturers, particularly in response to the country’s dependence on imported oil.
I think it was like 10 years ago, our government came out with a new policy. Because of its energy needs, China was a country in short supply of oil. Our government went to BYD, went to GWM, to Geely, and told them that, okay, you need to have your own technology,” she said.
According to Madam Yang, sustained government support enabled Chinese automakers to develop their own technologies and become globally competitive.
She cited GWM as an example, saying the company invested heavily in research and innovation to develop proprietary hybrid vehicle technology while producing affordable, high-quality vehicles.
Look now, he has all his own technology. GWM has been dominating the Chinese market for 17 years. It was also because the price is nearly half that of Toyota or VW. That is so affordable and quality,” she added.
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