How to Break Through the "Fortress Besieged" of China's Auto Parts

As of November 2011, according to conservative statistics, nearly 40,000 automobile parts and components enterprises in China, large or small, generated total production value of about 2 trillion yuan in 2011, an increase of 20% from the 1.6 trillion yuan of the previous year.

At the same time as the rapid development of the entire vehicle industry, China's parts and components industry is also booming, but the ever-increasing price war in the entire vehicle market is eroding the profitability of the parts and components industry, and OEMs need to reduce costs and ensure profits. More and more demanding, the establishment of a global procurement platform has made the crisis of domestic parts and components companies more and more prominent. Among the important issues are the small scale of production, the relative lack of independent development capabilities of enterprises, and the serious problems of local protectionism. This has caused parts and components systems to become independent of each other, and it has been difficult to form scales. The lack of investment in product development has resulted in the simultaneous development of parts and components companies and OEMs. Ability is difficult to form. These problems have become an important factor affecting the international competitiveness of China's auto parts industry. According to statistics, the market share of the top 100 companies in the domestic spare parts industry accounts for only 50% of the entire industry, far lower than the concentration of the world's automotive industry.

According to statistics, as of the end of 2011, there were more than 8,000 domestic auto parts enterprises above designated size, but more than 85% were private enterprises, and the vast majority of annual sales were below 100 million yuan. The proportion of large auto parts companies in the industry is less than 1%, and large and medium-sized companies are also less than 15%. Moreover, 90% of the market share and manufacturing capacity of these parts and components companies are concentrated in low-end products, and the remaining 10% are involved in high-end products. The vast majority of companies in the product also have joint ventures with foreign partners.

Among the leading domestic parts and components companies, most of the products they produce are concentrated in a single area or a single product, and lack large-scale component groups with comprehensive supporting capabilities. Such as Wanxiang Group (universal joints, etc.), Weichai Power Group (engine), Fast Automotive Transmission Group (gearbox), Shanghai Yanfeng Johnson Controls Seating Company (seats), Zhejiang Asia Pacific Electromechanical Company (ABS, The large-scale parts and components companies, such as hydraulic brake parts, Ruili Group (brake system), and Fuyao Glass Industry Group Corporation (glass), have intangibly weakened their overall competitiveness due to a single product line.

The single product line of the leading parts and components companies has limited the opportunities to form a comprehensive supporting supplier. In addition to a few large-scale parts and components companies in China that have multiple companies (in the same field as engines, transmissions, brakes, and other types of enterprises), most of the rest are attached to a host plant or a supplier or a second-tier supplier. , such as Changchun FAW, Hubei Dongfeng, Shanghai SAIC, Chongqing Chang'an, Guangzhou GAC, Anhui's Chery / JAC, Zhejiang's Geely, Shandong's CNHTC / Zhongtong, etc., these host plants are gathered around a big The manufacturers of batches of parts and components, their products are closely related to these OEMs and demand-based supply and demand, lack of a broader range of market expansion vision, it is difficult to become bigger and stronger, it is difficult to form a climate in the industry.

The geographical scale brought about by the accumulation of parts and components can complement each other and reduce the costs of logistics and warehousing. However, if we really want to enlarge and strengthen the auto parts industry in China, we must also strengthen technology research and development, upgrade core technologies, and implement integration optimization. In order to form a real sense of scale effect, we can continue to respond to the impact of foreign-owned parts and components enterprises. Only in this way can we gradually grasp the right to speak and standard in the process of China's auto industry from big to strong.