Chinese auto parts companies usher in an outbreak

With the rapid development of the automotive market, the Chinese automobile industry has become the largest cake in the world's automotive industry. As the cake has grown bigger and bigger, Chinese auto parts companies have ushered in an outbreak.

According to predictions released recently, China's auto parts manufacturing industry is expected to achieve an annual growth of more than 20% in the next five years. While the demand for new cars continues to drive sales of passenger vehicles, the aftermarket will become the new growth engine for the parts and components industry.

Challenges faced by the automotive industry Recently, Xiao Yaping, deputy director of the China Machinery Industry Federation, stated at the press conference of the “13th China Automotive Industry Development Summit Annual Conference and 2015 China Automotive and Parts Market Analysis and Forecasting Conference” that the current automotive industry is facing huge The technological changes and industrial changes, the challenges faced by the development of China's auto industry have also forced the auto and its parts and components companies to make adjustments and changes in their development strategies and development methods.

According to industry forecasts, the compound annual growth rate of passenger vehicles in China during 2013-2018 will reach 7%, and the sales of new vehicles will reach 25 million by 2018. In the domestic vehicle ownership from 2002 to 2013, the number of passenger cars aged 0-3 years reached 56.9 million, of which approximately 90% were under warranty.

Industry experts generally believe that, from the current point of view, although the potential of China's auto parts market is huge, local parts and components companies are in danger of being marginalized. At this stage, almost all of the core suppliers of auto companies are monopolized by foreign joint ventures or wholly-owned parts and components companies. Where does China's parts and components companies go? This is a serious problem facing the industry at the moment.

In this regard, Xiao Yaping told the Beijing Business Daily that the 13th China Automobile Industry Development Summit also focused on macro environmental factors, external factors such as energy conservation, environmental protection, safety, and transportation, as well as factors affecting automobile and related industrial policies and regulations. In-depth analysis was conducted on the focus market and focus competition of suppliers, and a combination of qualitative and quantitative methods was used to prospectively predict the future development trend of the industry, 2015 and future parts development trends and product technology development trends.

“In the first nine months of this year, China’s auto production and sales both exceeded 17 million. There is no doubt that although the growth rate has declined, China is still a large automobile country. To promote the transformation and upgrading of China’s auto industry and truly achieve a fundamental change from a big change to a strong one, it is We have a long-term strategic goal. This goal is not only the future expression of the many constituent elements of the Chinese dream, but also the continuous practice of turning dreams into reality." Xiao Yaping said.

It is worth noting that local auto companies are trying harder to improve. Chinese auto parts companies have accelerated their overseas investment in recent years. Some auto parts companies are no longer merely satisfied with the export of parts and components, but set up factories in the United States and other countries and regions or directly acquire local companies, hoping to become global auto parts suppliers.

It is understood that in order to follow the development of new energy vehicles and car networking technologies, many traditional parts and components companies use capital to enter these new areas. China's spare parts companies also participated in the acquisitions. The mergers and acquisitions involved areas including stamping parts, exhaust pipe trims, cable products, cast iron cylinder parts, airbags, seat belts and steering wheels, automotive shock absorbers, and fuel tanks.

According to the status quo of industrial development, Xu Changming, director of the Information Resources Development Department of the National Information Center, believes that domestic parts and components companies are small in scale, weak in strength, and lack of R&D capabilities. Under such circumstances, if the parts industry wants to develop rapidly, it must speed up mergers and reorganizations. Scale effect.

However, most domestic manufacturing companies will find it hard to improve their competitiveness in the short term. The Gasgoo.com survey results show that only 26% of respondents believe that local parts manufacturing companies will develop into the upper value chain in the next five years, 20% believe that it will take at least five years, and 54% do not think it will happen in the near future. There are changes. Many smaller local component manufacturers will focus on the increasingly competitive aftermarket, and the export of cheap components will remain strong.

It is reported that from the second half of this year, the automobile anti-monopoly concentratively rectifies the “zero-to-lot ratio” of automobiles. Although it is possible to curb the multinational companies from the policy level to extract high profits from the parts and components market, it cannot change the scattered, weak, and poor parts of the domestic spare parts industry. The situation.

According to industry insiders, relevant departments should further encourage and promote the existing joint ventures and independent brand auto companies to cultivate local suppliers. Currently, there are many joint ventures that have formed a good mechanism for fostering local suppliers. It is worth encouraging private brand cars to pay special attention to and establish this good mechanism. This is for learning advanced foreign technology and improving the product level and management level of China's spare parts enterprises. It is of great value to open up the international market.