Yin Mingshan, a college teacher and editor of the publishing house, was 66 years old and started his business at the age of 54. In 2003, the sales revenue of Lifan Group was close to 5 billion yuan. However, Yin Mingshan's goal is two 10 billion yuan - 10 billion yuan and 10 billion US dollars in sales revenue. He said that doing cars can help Lifan achieve these two goals quickly. However, Lifan's road to building a car has also encountered a lot of questions. Yin Mingshan bluntly said: “For Lifan to build cars, at this stage, it is said to be good, there is also pouring cold water. To say that good is an encouragement, that is not good to make us more sober.†Recently, our reporter visited Chongqing with doubts Lifan Group conducted an exclusive interview with Yin Mingshan, Chairman of Chongqing Lifan Holdings Co., Ltd. Lifan steers the middle of the road. Reporter: Why did Lifan enter the vehicle manufacturing industry? Yin Mingshan: Motorcycles are a small industry, which is determined by the size of the economy. In general, when the per capita GDP index is between US$400 and US$1200, it is the era of motorcycles; after 1200 US dollars, motorcycles will definitely decline. China is currently approaching 1,000 US dollars and the space for motorcycles is already very small. Clone Honda Mode Reporter: Some people say that Lifan is cloning the Honda model. Is that the case? Yin Mingshan: Japan's Honda and Suzuki are good examples. Honda began to extend to the automotive industry. To date, Honda has achieved brilliant results—more than $20 billion in sales revenue. Motorcycles are still the first in the world, but motorcycles only accounted for 9% of sales, only 2 billion US dollars. This gives us a good revelation: If Lifan also extends to the car, today we can do 5 billion motorcycles, if you can completely clone the Honda model, according to the car profit is 10 times the calculation of motorcycles That is 50 billion. Reporter: You just said that motorcycles can be extended to cars. Can you explain them in detail? Yin Mingshan: There are several aspects of motorcycles that can be extended to the automotive sector, but it is only an extension, not a change. For example, the engine technology, braking, lighting, electronics, etc. are basically the same. Marketing methods and brands can also be extended. These are the successful experiences of Honda and Suzuki. We can go this way. Buy technical equipment Reporter: Please tell us about the technical source of Lifan's sedan. Yin Mingshan: Some people have said that Lifan rejects foreign technology and does not cooperate with foreign countries. I said we are not so stupid. I just say that we must take the lead in technological property rights. We have independent property rights. I should buy money and buy money. The technology and the people bought the money and bought it. The patent belongs to me. Reporter: Why did Lifan first enter the economy car market? Yin Mingshan: Our technical problems have been solved. Then is our technology as high as GM, Toyota, Volkswagen, and Honda? of course not. We still have a hard way to go, so at the beginning we are very real. We want to build economical cars instead of making hundreds of thousands or even millions of luxury cars. It's a bit of a step, so we are pragmatic. Independent Investment Report for Sedan Project: How much do you think domestic investment can make cars? Please tell us about the source of funding for Lifan Sedan. Yin Mingshan: How much money is needed to build a car in China? Some economists said that according to the world standard is 10 billion US dollars. Now 100 million US dollars is enough. Because it is now a complete set of parts and components, automakers only need to rush, weld, paint and assembly the four major workshops, the problem is whether you have the ability to drive, co-ordinate, collect parts and components. This is precisely the strength of Lifan. We have invested 800 million yuan in this first phase, plus a total of 900 million engines. The industrial policy is to reach 2 billion, but we can vote in phases. With an investment of 800 million, we did not look for government and banks. It was entirely the funds that we raised. Reporter: Why did Lifan not directly follow the path of joint venture or cooperation? Yin Mingshan: The road to joint ventures and cooperation is the fastest. I understand that by borrowing ships to sea, no joint venture or cooperation is mainly considered from two aspects. The first reason is that Lifan is known for exporting. Lifan Motors also wants to export. It is very difficult for me to observe the export of joint venture cars. There are also technologies, some of the joint venture cars have to change their screws to report abroad. Is the technology for the market successful? We don't know. Due to these two restrictions, we decided to do our own brand first. (Cong Gang)
Interview with Lifan Chairman Yin Mingshan: Lifan wants to open the door to build a car
Yin Mingshan, a college teacher and editor of the publishing house, was 66 years old and started his business at the age of 54. In 2003, the sales revenue of Lifan Group was close to 5 billion yuan. However, Yin Mingshan's goal is two 10 billion yuan - 10 billion yuan and 10 billion US dollars in sales revenue. He said that doing cars can help Lifan achieve these two goals quickly. However, Lifan's road to building a car has also encountered a lot of questions. Yin Mingshan bluntly said: “For Lifan to build cars, at this stage, it is said to be good, there is also pouring cold water. To say that good is an encouragement, that is not good to make us more sober.†Recently, our reporter visited Chongqing with doubts Lifan Group conducted an exclusive interview with Yin Mingshan, Chairman of Chongqing Lifan Holdings Co., Ltd. Lifan steers the middle of the road. Reporter: Why did Lifan enter the vehicle manufacturing industry? Yin Mingshan: Motorcycles are a small industry, which is determined by the size of the economy. In general, when the per capita GDP index is between US$400 and US$1200, it is the era of motorcycles; after 1200 US dollars, motorcycles will definitely decline. China is currently approaching 1,000 US dollars and the space for motorcycles is already very small. Clone Honda Mode Reporter: Some people say that Lifan is cloning the Honda model. Is that the case? Yin Mingshan: Japan's Honda and Suzuki are good examples. Honda began to extend to the automotive industry. To date, Honda has achieved brilliant results—more than $20 billion in sales revenue. Motorcycles are still the first in the world, but motorcycles only accounted for 9% of sales, only 2 billion US dollars. This gives us a good revelation: If Lifan also extends to the car, today we can do 5 billion motorcycles, if you can completely clone the Honda model, according to the car profit is 10 times the calculation of motorcycles That is 50 billion. Reporter: You just said that motorcycles can be extended to cars. Can you explain them in detail? Yin Mingshan: There are several aspects of motorcycles that can be extended to the automotive sector, but it is only an extension, not a change. For example, the engine technology, braking, lighting, electronics, etc. are basically the same. Marketing methods and brands can also be extended. These are the successful experiences of Honda and Suzuki. We can go this way. Buy technical equipment Reporter: Please tell us about the technical source of Lifan's sedan. Yin Mingshan: Some people have said that Lifan rejects foreign technology and does not cooperate with foreign countries. I said we are not so stupid. I just say that we must take the lead in technological property rights. We have independent property rights. I should buy money and buy money. The technology and the people bought the money and bought it. The patent belongs to me. Reporter: Why did Lifan first enter the economy car market? Yin Mingshan: Our technical problems have been solved. Then is our technology as high as GM, Toyota, Volkswagen, and Honda? of course not. We still have a hard way to go, so at the beginning we are very real. We want to build economical cars instead of making hundreds of thousands or even millions of luxury cars. It's a bit of a step, so we are pragmatic. Independent Investment Report for Sedan Project: How much do you think domestic investment can make cars? Please tell us about the source of funding for Lifan Sedan. Yin Mingshan: How much money is needed to build a car in China? Some economists said that according to the world standard is 10 billion US dollars. Now 100 million US dollars is enough. Because it is now a complete set of parts and components, automakers only need to rush, weld, paint and assembly the four major workshops, the problem is whether you have the ability to drive, co-ordinate, collect parts and components. This is precisely the strength of Lifan. We have invested 800 million yuan in this first phase, plus a total of 900 million engines. The industrial policy is to reach 2 billion, but we can vote in phases. With an investment of 800 million, we did not look for government and banks. It was entirely the funds that we raised. Reporter: Why did Lifan not directly follow the path of joint venture or cooperation? Yin Mingshan: The road to joint ventures and cooperation is the fastest. I understand that by borrowing ships to sea, no joint venture or cooperation is mainly considered from two aspects. The first reason is that Lifan is known for exporting. Lifan Motors also wants to export. It is very difficult for me to observe the export of joint venture cars. There are also technologies, some of the joint venture cars have to change their screws to report abroad. Is the technology for the market successful? We don't know. Due to these two restrictions, we decided to do our own brand first. (Cong Gang)