·China's auto parts industry faces four major bottlenecks

In recent years, international multinational auto parts groups have entered China one after another, and have long been attached to vehicle manufacturers. China's auto parts industry, which is obviously at a disadvantage in terms of capital, technology, management and R&D, faces an unprecedented severe challenge. Global procurement, simultaneous R&D, modular supply and neutral development have become the four major bottlenecks facing the development of China's auto parts industry. Faced with the challenges of global procurement, the industry believes that China's auto parts industry urgently needs to break the "home door" market concept, and urgently need to get the "tickets" to enter the global procurement platform. In this regard, the reporter interviewed Mr. Gao Jinhua, a partner of Stanley Consulting and a senior researcher in the parts industry.

In the short-term, China's auto parts companies, which cannot make breakthroughs in technology research and development, have no choice but to choose a joint venture with the international multinational auto parts group. The development prospects of the whole industry are worrying.

The most important bottleneck facing China's parts industry is research and development capabilities. Due to the low level of research and development, there is no independent brand, and it can only imitate the production of other people's products. Most of the parts and components enterprises in China cannot adapt to the requirements of synchronized research and development, which is not only difficult to match with new models, but also inevitably faces the danger of losing the traditional market.

Followed by global procurement. At present, China's auto parts industry has a low overall manufacturing level, extensive management, and weak cost control, which cannot meet the user's global procurement requirements for product quality, cost, and delivery time. Especially in the cost control, with the frequent price war of the car, the cost pressure is constantly shifting to the parts and components, and the cost control ability of China's auto parts enterprises faces enormous challenges. It is estimated that at least 10% of the current vehicle price will be reduced to at least 5% to parts companies.

Compared with the 50:50 stock ratio limit of the whole vehicle, in addition to the same restrictions on the energy-based power battery in the auto parts field, the other items are not limited, and the opening strength is increasing year by year. More and more open entries indicate that compared with foreign-funded parts, the development of China's parts industry is still relatively lagging. It is necessary to continuously learn foreign technology to shorten the gap with international parts companies.

The third is modular supply. Modular supply is a new management concept and business model brought about by global procurement. It puts strict requirements on the production management level, assembly labor productivity, cost control capability and electronic level of component companies. At present, China's parts and components enterprises are still far from the gap with foreign companies in this respect, and they cannot keep up with them in the short term. Especially in terms of integration and electronicization, due to backward technology, most of China's parts and components enterprises can only produce primary labor-intensive products. Therefore, Gao Jinhua believes that the added value of products is low, and only two or three can be implemented with vehicle manufacturers. Level matching, it is difficult to enter the ranks of first-class suppliers.

In addition, insufficient capital investment, small production scale, small batch size, and weak strength make China's auto parts companies unable to compete with international multinational parts companies.

The increase in market openness brings opportunities to the parts and components enterprises, but also brings risks. How can independent parts and components enterprises prevent foreign investors from controlling the Chinese market? In fact, from the current market development, China's parts and components are already under control," Gao Jinhua said, but we still have to work hard to create conditions and take the initiative to create opportunities for breakthroughs and development.

The foreign zero-relationship relationship is a mutual promotion and benign development relationship, and the whole vehicle will give priority protection to local parts and components enterprises. China's zero-relationship should also be like this. The government should create more opportunities for cooperation between parts and automakers and automakers, promote the coordinated development of zero-zero relations, and formulate an insurance mechanism to eliminate the quality of auto parts and products for automakers and consumers. Concerns, encourage the market to give priority to independent brand parts and components.

DTH Drill Bits

Dth Drill Bits,Hard Rock Drills,Excavator Rotating Grapple,James River Equipment

Jinan Lingong Mining& Rock Technology Co., Ltd. , https://www.lgmrt.com