Three reasons why China's auto parts endeavor

With the continuous high growth of automobile production and sales in China, the future development of the parts and components industry is attracting more and more attention. The rapid development of the parts and components industry will also provide strong support for China's auto industry to become bigger and stronger. On June 21, 2010, Weichai Group announced that it will build a global leading full-series and all-round engine platform and strive to sell more than 2 million units in 2020, with sales revenue exceeding 100 billion yuan. Weichai will also become a global technology leader in powertrain suppliers. With the release of this "100 billion strategic plan", the development of China's auto parts industry has entered a new stage.

Weak foundation for development of parts and components

China's auto parts industry originated in small workshops that overhaul imported cars before the 1950s. This kind of small workshop has simple equipment, poor manufacturing process, small production scale, and low product quality. However, this has formed the prototype of China's spare parts industry. The construction of FAW in the 1950s provided an opportunity for the development of the parts and components industry. Along with the advent of the first domestic automobile, the parts and components industry has been initially developed on the basis of the original, formed an auto parts factory with a certain production scale, and trained some technical personnel engaged in the research and development of auto parts products. However, due to the slow development of China's auto industry at that time, the variety of vehicle models was limited, and the output was very low. The technical level of the auto parts products that were matched with them was generally not high, and most of them were for trucks. Although there were some imported cars at that time, due to the low number of possessions and high technical content, most of the parts needed were imported.

After the reform and opening up, China's auto industry has embarked on the road of a market economy, and its parts and components industry has gradually begun to face the market. In 1985, Shanghai Volkswagen was established and began producing Santana sedans. At that time, in the face of the technical requirements for Santana, the supporting capacity of the national auto parts was almost zero. Afterwards, starting from the CKD assembly and achieving localization, Shanghai Volkswagen spent nearly 6 years to establish a localized community of Santana and fully accelerated the localization process of Santana. The success of localization has enabled Shanghai Volkswagen to establish a complete system of parts and components, which has made outstanding contributions to the development of China's auto parts industry.

After China officially joined the WTO at the end of 2001, the parts and components industry began to face fierce competition in the international market. The most prominent manifestation is the increasing investment of multinational component companies in China. Most multinational component giants set up factories in China. This is undoubtedly a huge challenge for China's domestic component companies. China's auto parts industry is increasingly required to strengthen mergers and reorganizations, integrate key resources, and increase production concentration, thereby accelerating the development of enterprises with large production capacity and strong anti-risk capabilities.

Increased strength of local companies

Judging from the laws of the development of foreign auto industry, including the world-famous auto parts manufacturers - Bosch in Germany, Delphi in the United States and Denso in Japan, etc., are gradually developing along with the growing auto industry in the country. . Without strong auto industry strength, it is impossible to lead leading component manufacturers; similarly, if there is no strong supply of spare parts, the automobile industry will be even bigger, and it will not form a sustained growth force. Therefore, for China's development of parts and components industry, there is an urgent need to change the past "rebuild vehicles, light parts" idea, to provide a good space for the development of parts and components.

A few days ago, under the guidance of the Ministry of Commerce, more than 1,000 professionals from more than 400 domestic and foreign OEMs and first-tier large-scale component manufacturers purchased and researched and developed more than 1,000 professionals. The market share of local parts and components companies is increasing, and the market share of domestic companies in more than 40% of market segments exceeds 50%, especially in commercial vehicles and second- and third-tier component parts.

According to a research report, local auto parts suppliers have a dominant position in more than ten automotive sectors such as automobile wheels, glass, batteries, drum brakes, cylinder blocks, filters, pumps, radiators, flywheels, connecting rods, and horns. .

In the past five years, many fields such as alternators, clutches, wiper systems, and seals, which have dominated the market for foreign capital, have developed rapidly and have taken a place, and are expected to gain even greater space for development in the future. In particular, local companies have performed most prominently in the product areas where cost factors dominate the purchasing decision. According to a survey report published by Gasgoo.com, local companies account for more than 70% of the 70% of parts and components, and local suppliers have obvious advantages in some product areas. Such as body parts, gearbox parts, brake pump boosters, GPS, brake pads and other products. From this we can see that in recent years, the local parts and components companies have rapidly risen in many segments, and the overall growth rate has surpassed that of foreign-funded companies in quite a number of areas.

Guide the healthy development of the industry

For the progress of China's domestic parts and components companies, relevant experts believe that there are four reasons: First, the development of self-owned brand vehicle companies and the increase in market share have brought great growth opportunities to local parts and components companies. In the recent three years of rapid development of China's own-brand vehicles, these OEMs have been more open to local suppliers of parts and components than their international counterparts in procurement strategies, and have provided support and quality and management for a large number of local parts and components companies. opportunity. Second, the local parts companies have emerged a group of outstanding entrepreneurs and make full use of the excellent development opportunities in the current auto market. Different from 10 years ago, the blowout development of the automotive industry in recent 5 years has re- attracted the attention of a large number of entrepreneurs who were previously reluctant to invest in domestic matching markets. They have fully utilized the development opportunities in recent years and improved Internal management, and narrowing the distance with foreign companies in terms of competitiveness. Third, the localization trend of procurement of international brand vehicle companies is getting stronger. At the same time, starting from 2009, part of the joint-venture vehicle companies, procurement strategy began to adjust, from the relatively stable and stable supplier system to the reconstruction of the supplier system according to the characteristics of the Chinese supply market, competitive Chinese domestic suppliers It is also included as a candidate supplier, which brings great opportunities for local suppliers. Fourth, global procurement has brought about an improvement in concepts and management capabilities for Chinese companies. Since 2003, the automotive industry has been pursuing global procurement. Over the past six years, while bringing international orders to many Chinese domestic parts and components companies, it has also brought about changes in the concept of supply chain management and improved management capabilities. This has also greatly increased the overall competitiveness of local parts companies.

While seeing the progress of China's domestic spare parts enterprises, we should also note that in some key component areas, including EMS engine control systems, airbags, ABS systems, three-way catalytic converters, automatic sunroofs, air conditioning systems, car seats As for the systems and components such as chair assemblies, electric window regulators, lighting systems, automatic transmissions, and high-pressure fuel pumps, the competitiveness of local parts and components companies is still not strong. China's domestic auto parts enterprises still lack the ability to develop simultaneously, but only have the ability to develop according to prototypes or develop according to drawings. At the same time, due to huge investment in research and development in the field of high-tech parts, high development costs also make local components. It is difficult for enterprises to change this situation in a short period of time; in addition, China's domestic spare parts companies do not have the opportunity to develop simultaneously with the vehicle companies. Judging from the current OEMs, the vehicle development of the joint ventures is basically conducted abroad, and foreign parts companies can also win opportunities for the simultaneous development of new vehicles. At present, domestic self-owned brand auto companies are increasing their efforts to develop products. However, in some high-tech parts products, they also tend to purchase foreign parts and components to ensure the quality of new vehicles.

Judging from the current stage, the overall characteristics of China's domestic auto parts companies are that they tend to increase their product development efforts, such as brakes, wheels, etc., with relatively little technical content and relatively low investment in technology, and they can demonstrate advantages in cost control. Dong Jianping, Secretary General of the China Association of Automobile Manufacturers, said in an interview: “There are many deep-seated problems in the auto parts industry in China that have affected the continuous, steady, and healthy development of the parts and components industry, and adjustment of the structure is a long-term solution. Therefore, we must handle the relationship between the short-term and long-term, while ensuring growth and expansion of domestic demand, we must also pay attention to solving the structural problems in the spare parts industry." Therefore, he suggested that the state should study the issue. Encourage policies to guide the healthy development of the parts industry. In order to solve the problems of small production quantities, decentralized production, and low-level redundant construction of parts and components companies in China, the state should support leading small-sized enterprises specializing in spare parts to become bigger and stronger.

TIG Welding Torche

Ningbo Yongshock Precision Machinery Company LTD. , http://www.yongshockparts.com