China's auto parts industry presents four new trends

<


With the development of the automobile industry, China's auto parts industry has also gradually grown up, and has generally gone through four stages of development, fluctuation, transition, and adjustment.

The main features of the rise stage are the development of parts and components driven by the vehicle and the supply of fixed parts. However, at the time most of the parts and components companies had very low production levels, the production scale was very small, and there was no capacity for product development and updating. As a result, the parts and components companies had poor product quality and high prices, and they could only be matched with the required manufacturers, and they could not be sold arbitrarily. To other vehicle companies, basically for domestic medium and heavy trucks and light vehicles.

From the middle of 1978 to the mid-1990s, it reached the wave stage. During this period, parts and components developed around the entire vehicle, and the competition for parts and components gradually took shape. The parts and components industry supporting the car was established. In the mid to late 1980s, the country decided to build the automobile industry into a pillar industry of the national economy, and a large number of small and medium-sized component enterprises emerged. However, the scale of these enterprises is also very small, more than 80% of sales are below 100 million yuan, and the number of duplicated constructions is huge. There are 2,000 fixed-point component manufacturers in the country, and the actual number is 5,000; the technical strength is weak.

In the transitional phase, there has been a parallel development of parts and components relative to the entire vehicle, and the company’s competitiveness has been gradually improved. After the development from the mid-1990s to the end of 2001, China's auto parts industry has made great progress in terms of productivity, product variety, management and technical level, and technological innovation capability.

After joining the WTO, China's auto parts industry has entered the adjustment phase. Multinational companies have poured in and the industrial structure of parts and components has been adjusted. In particular, in 2003, the number of foreign-funded joint venture parts and components companies grew almost double that of 2002. According to statistics, at present, the number of foreign-invested parts and components companies in China is close to 500. Most of the world’s top 20 auto parts companies have set up joint ventures or wholly-owned enterprises in China.

The accelerating entry into China of multinational component giants and their strategic changes, coupled with their own capital and technological advantages, have enabled these companies to gain more and more market share in the Chinese market, and have also made the domestic component companies face more competitive pressures. The bigger it is. Under this background, the domestic parts and components companies only choose to cooperate with transnational corporations and other methods to adjust the industrial structure.

At this stage, the strategic investment of multinational corporations entering China is not simply the use of China’s low-cost advantages, but also involves the division of labor and the transfer of international industries, forming a situation in which domestic demand and external demand affect the development of the industry. It requires that China's parts and components industry must achieve the transition from an internal recycling industry relying on domestic resources to an international one. The industrial development policy must also be changed from a purely supply-side bilateral policy of supply and demand.

The rapid growth of China's parts and components industry in recent years has led to an increasingly greater role in the output value of the automobile industry and the entire national economy. The proportion of the total output value of the automobile industry rose from 24.23% in 1998 to 2002. 26.20%, it is expected to account for more than 27.5% in 2003. As of the end of 2003, the number of employees in the parts and components industry reached 12.56 million.

Parts industry will develop in parallel with the automotive industry

As the increasingly globalized competition intensifies, new changes have taken place in the auto parts industry in the developed countries of the world. Correspondingly, China's auto parts industry will also present the following trends:

First, the parts and components industry will keep pace with the automotive industry.

The progress of the development of the auto parts industry in major auto-producing countries in the world shows that the parts and components industry and the auto industry have basically developed in parallel. China’s experience has also shown that if a vehicle manufacturer is built, if parts and components cannot be manufactured, they cannot guarantee the supply of spare parts in time, and the entire vehicle factory will be unable to play a role. If a large number of parts and components are imported over a long period of time, not only will it cost a lot of foreign exchange, but it will also be difficult for the auto industry to be in a strong position.

When vehicle manufacturers develop new products, component manufacturers can not only reduce the manpower and material resources of vehicle manufacturers, but also shorten the development cycle, and at the same time can form a close-knit, coordinated operational partnership with the vehicle manufacturers. Group advantage.

Second, industrial restructuring was carried out by way of mergers, mergers and acquisitions, and the trend of corporate restructuring was strengthened.

In recent years, as major auto companies have reformed the supply system, auto parts companies have become popular in mergers and acquisitions. In our country, if we want to manage the problems of scattered and unbalanced parts and poor economic efficiency of the parts and components industry, we must take advantage of the strength of the market economy, make full use of the effects of economies of scale, and, under the guidance of the country’s macroeconomic policies, selectively support a considerable scale. The backbone component enterprises with certain strengths in terms of products and technologies, through asset allocation, mergers, equity participation, and controlling, and other companies with certain advantages, form large-scale parts and components companies, and increase the economies of scale and overall strength. Only in this way can the parts and components companies continue to expand their capabilities, improve product development capabilities, system development, and system supply, while shortening the development cycle and providing quality and cheap products.

Third, the parts and components companies and vehicle companies will be separated and separated from each other, but the cooperation between parts suppliers will be closer.

At present, many auto OEMs in the world continue to reduce their parts autonomy and reduce the number of collaborating plants, and adopt strategies for global production and global sourcing, from sourcing from multiple parts manufacturers to purchasing from a few system suppliers. Parts purchases are transformed into module purchases and transferred from domestic purchases to global purchases. This change has strongly promoted the independence and divestment between parts and components companies and vehicle companies. In this case, in order to gain the advantages of negotiation, the parts and components companies have a closer cooperation relationship, which makes the global parts supply system gradually evolve toward the pagoda structure.

Fourth, the speed of technological progress will accelerate, the globalization of business operations will increase, and the anti-dumping complaints facing the export of parts and components will also increase.

At present, safety technologies, power technologies, energy-saving technologies, and environmental protection technologies are widely used in automobiles. In addition, coupled with the increasing number of imported models, the continuous improvement of the technology level of imported vehicles will certainly promote the improvement of China's spare parts level.

In terms of business scope, in order to further reduce costs and occupy the market, many multinational companies in the world's auto parts industry have all developed toward internationalization. As the export of parts and components products in China continues to increase, foreign technical barriers and foreign anti-dumping complaints against auto parts will also increase.


The machinery of 50  Concrete Batching Plant stationary is one of the model-sized series Batching Plant of Shine company. It`s suitable for small-scale construction projects, precast yard and commercial concrete companies. It is full-automatic Concrete Mixing Plant which is composed by feeding, batching, mixing, electrical control and steel structure components. International popular modular compact structure. The mixing system with excellent mixing performance. Main electrical components from Germany SIEMENS. Suitable for small-scale construction project Adapt and apply for the most advanced technologies.

50 Concrete Batch Machinery

50 Concrete Batch Machinery,Removable Concrete Machinery,Portable Concrete Batching Plant,Concrete Batching Machine

SHANDONG SHINE MACHINERY CO.,LTD , https://www.shinebatchplant.com