Parts Provider: Or "First Battleground" for Deepening Reform

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The monopolistic behavior of automobile manufacturers mainly includes two aspects: one is to limit the price of whole vehicles; the other is to limit the spare parts prices and maintenance prices of 4S stores. A senior person in the auto industry said that some brands have reduced the prices of some models, but the odds ratio of other models is not low. Internationally, the zero-to-total ratio is usually 2:1 or 3:1. In turn, it is speculated that the future price reduction of multinational brands may be greater in the spare parts rather than the entire vehicle price.

Dr. Qiao Liang, executive director of the Society of Automotive Engineers of China, said that at present, the prices of spare parts for imported vehicles are still high, which is due to the monopolistic supply of spare parts by manufacturers and dealers have no right to speak. Some spare parts originally required only 50 US dollars for a single change, but the manufacturers demanded that consumers must be replaced in groups, and the price would be as high as 500 U.S. dollars. This kind of replacement model led to the monopoly of manufacturers on spare parts prices.

According to Cui Dongshu, the fundamental reason for the monopolistic status of Japanese parts and components manufacturers lies in their mastery of core technology advantages and high technical barriers. It is difficult to change the antitrust policy alone. Therefore, he suggested that in addition to asking them to cut prices, they can also require that the parts and components companies also joint ventures with local Chinese companies, on the one hand to enhance our technical strength, on the other hand in order to change the monopoly.

In fact, the monopoly of automobile spare parts has caused widespread concern and attention. Once the auto manufacturers' monopoly in this field is broken, the auto parts industry is likely to take the lead in introducing a more adequate market competition mechanism and become a deepening market reform for the auto industry. The "First Battleground".