Chinese and foreign companies compete for auto parts market


If fuel is the car's blood, then spare parts are the body's various organs.

With the development of the Chinese automobile industry, parts and components are slowly maturing as various body parts of the car.

From the "restructuring of vehicles and light fittings" to the "development basis of the automotive industry", from the shortage of plans to the supply of goods in the auto parts market, the development of China's auto parts industry is proud; from the late 80s of last century, Since China's accession to the WTO, from the regional and local to the globalization of procurement and the globalization of information, the grim situation of China's automobile parts and accessories industry has also been alarming.

2003 was the 50th year of the Chinese automobile industry. The 50-year development has nurtured a large number of localized automobile parts manufacturing companies. As the consensus of the national automobile industry becomes bigger and stronger, it is deeply rooted in people's minds. With the new market planning, local barriers are constantly falling apart, and the Chinese automobile parts and accessories industry is facing from There are no opportunities. Of course, it is more challenging. Focusing on opportunities and challenges, both Chinese and foreign companies are trying to lay out a piece of content and start fighting to compete in this huge auto aftermarket. China's auto parts market is home to unlimited business opportunities. Strong foreign investors, local companies that are in possession of favorable conditions, and local companies are eager to share a share. In 2003, China's auto production reached 4,443,600, of which more than 30% of the spare parts were purchased from abroad, especially the rapidly developing passenger cars and passenger cars, and the number of imported accessories was even greater. As a result, global auto parts and multinational companies such as Delphi, Bosch, Denso, Michelin, etc. entered China through joint ventures or sole proprietorships. The auto parts and components produced by Chinese auto industry enterprises are accelerating into the global production system of multinational corporations.

Toyota, Volkswagen, General Motors and other multinational companies already have dozens of top-notch auto parts factories in China. In the all-round cooperation between Dongfeng and Nissan, Nissan is committed to integrating auto parts suppliers from Shanghai, Shiyan and Xiangfan into its global procurement system. China’s auto parts suppliers are now facing unprecedented market opportunities. In addition to the rapid growth of domestic auto production, the demand for auto parts will be strongly driven, and the demand for auto parts products in China will also grow strongly in overseas markets.

Different from the incremental demand arising from the increase in domestic automobile production, the growth of auto output in overseas markets is flat. The demand for auto parts in China belongs to an alternative requirement. That is, purchasing products from China instead of those that are originally foreign (national) Made products. Overseas markets are divided into the OEM market and the Aftermarket. The former should be close to 3 times the latter in terms of total quantity. Historically, the vast majority of China’s auto parts exports have been concentrated in foreign aftermarkets, and mainly in countries such as the United States, which have dominated the independent aftermarket, and the supporting markets have been opposed by technology, manufacturing quality, costs, and union opposition. It is difficult to enter for other reasons.

Nowadays, with the lack of global auto demand, there is increasing pressure to reduce costs and competition between auto giants, and the manufacturing level and competitiveness of auto parts companies in China have been continuously improved in the past 10 years, plus China. Other industries, such as electronics, have become one of the global manufacturing bases, and their reputation has risen, making the giants of the automotive industry shift their sights to China. For a time, "SOURCING FROM CHINA" became a hot topic.

General Motors and Ford have been urging their first-tier component suppliers to either invest in China or purchase directly from Chinese companies since 2002. In fact, many vehicle manufacturers, first-tier suppliers, and circulation giants in the aftermarket are all actively formulating strategies and implementation plans for China's procurement. The door to the international matching market is opening up to parts suppliers in China more and more quickly.

In the next 10 years, China may become one of the global manufacturing bases for a wide variety of auto parts. It is expected that Chinese auto parts will enter the international OEM market from the start of 2004 and will enter a period of high-speed development around 2005.

The foreign spare parts industry will make a big impact on China, and it will surely cause an impact on the domestic companies in China. However, domestic companies can still rely on their own advantages to find a place in this hot and fast-changing market stage, to achieve their own great cause and even dominance.

At present, most of the components needed by the domestic automobile manufacturing industry are supplied internally by enterprise groups, and the self-control rate is above 70%, while the self-preparation rate of parts and components required by foreign automakers usually accounts for only 30%. To change the status quo of China's parts industry with low engineering and small production volume, it is necessary to adjust the organizational structure of the auto industry. The main task is to fully reorganize the production of auto parts and completely change the current auto manufacturing industry and zero. The integrated structure of the component manufacturing industry has established a new system of specialized matching component manufacturing companies.

According to statistics, the Chinese auto industry has passed 50 years, during which time a large number of local auto parts manufacturing enterprises have been cultivated. The export volume of Chinese auto parts, especially basic parts, rubber and plastic parts and testing equipment, is increasing year by year. "China's strength lies in the cheapness of its products, because China has a comparative advantage of cheap labor. China's average wage in manufacturing is equivalent to only 8% in South Korea and 4% in Japan, the United States, and Germany. China's auto parts are in terms of quality and quality. The price is very competitive in the market.Chinese auto parts companies can also make full use of international resources.In 2001, Zhejiang Wanxiang Group, a private company, successfully acquired UAI, a listed company in the United States, and created a township enterprise in China to acquire overseas listed companies. As a precedent, this group has gained overseas market operation capability and technological development capability.FAW Automotive Research Institute and German FEV Co., Ltd. have developed CA6DE series diesel engines and made new breakthroughs in Chinese automobile industry diesel engines.China Bluestar Corporation and South Korea APOLLO joint venture Established a modern automotive plastic parts company, the two sides invested a total of 170 million yuan.

However, we should also see that in the aspect of technology development of auto parts, the Chinese auto industry has considerable development capabilities in some low-value-added products, and many key auto parts and components are still only imitation of foreign products, such as China. The mass production engine of auto parts companies is only equivalent to the international level of the 1990s. The overall level of the auto engine industry is more than 20 years compared with developed countries.

It can be expected that with the continuous expansion of the Chinese auto market and the development of the Chinese auto industry, multinational companies will transfer their production bases to China and transfer more models and more auto parts to Chinese production. China Parts of the automotive industry will enter the global procurement system of multinational corporations more.

Parts and components industry is a relatively weak link in China's auto industry, but it is also the most promising part of the world.