China's auto parts industry development positioning and change trends


"Car Blue Book - China Automotive Industry Development Report 2009" No. 14

China Economic News: In the context of the financial crisis, the comparative advantage analysis of China's auto parts companies was affected by the US financial crisis and the consequent impact of global economic shocks. The short-term recession of auto parts companies in China is inevitable, but in the long term China's auto parts enterprises still have comparative advantages and there is still sufficient room for development.


1. One of the advantages: China's timely and decisive macroeconomic policy under the financial crisis has provided an important guarantee for the development of the auto parts industry.


2. The second advantage: China's huge consumer demand for automobiles will have a huge driving effect on the development of the auto parts industry.

3. The third advantage: An excellent investment environment will bring good prospects for the development of the auto parts industry. Despite the rising cost of some factors in recent years, China is still one of the countries with the best investment environment in the world. Along with the slump in the international auto market, China has gradually become the focus of the global automobile assembly and component giants, which will bring continuous and good development opportunities for the development of China's auto parts industry.

4. The fourth advantage is that the existing strength of the automobile industry and the strong strength of the manufacturing industry are potential advantages in the development of the auto parts industry.

Potential Changes in China's Auto Parts Industry in the Future

1. One of the possible changes in the future: China will become the world's automobile parts production and manufacturing center.

In 2008, the multinational component giant stepped up its strategic deployment in China. In addition to the “BorgWarner Dual Clutch Drive System Co., Ltd.”, Bosch Chassis Systems (Dalian) Co., Ltd. officially launched and the groundbreaking ceremony for the BorgWarner China Technology Center was held. , Delphi Pike Wuhan Automotive Electronic Production Base, etc., are all major news of the annual parts and components industry.

In the field of commercial vehicles, the German component giant Continental Group has signed a strategic cooperation agreement with Sinotruck. ZF, a world-renowned transmission component manufacturer, has signed strategic cooperation agreements with Futian and Yutong respectively in 2008. Multinational companies have spent more than 20 years completing the layout of the passenger vehicle market in China. Now it is the commercial vehicle that is the “cake”.

At present, China is becoming the main battlefield for multinational auto companies. In order to gain competitive advantage in fierce competition, countries are also shifting the latest technology to China. In the coming period, China will probably become the world’s auto parts production. And manufacturing center.

2. The second possible change in the future: China's domestic-funded parts and components companies have stepped up their efforts to “go global”.

At present, many automobile manufacturers in Europe and the United States are affected by the financial crisis and have announced that they will stop production and reduce production. This may be an opportunity for Chinese auto parts companies to seek cooperation with European and American manufacturers and even directly acquire European and American companies. If the international companies lay off large numbers of employees, the independent brands will have an excellent opportunity to attract talents.

In addition, due to lower foreign demand, in order to maintain its own development, more excellent foreign parts manufacturing companies will also increase cooperation with domestic domestic-funded enterprises. FAW, SAIC and other 12 independent brands of auto enterprises jointly built the "China Development" and the United States BorgWarner co-developed DCT transmission is the best proof.

3. The third possible change in the future: China's auto parts industry still has much room for development.

First, the Chinese auto market is different from the European and American markets, and there is still room for development in the auto market. The vehicle ownership in China is still very low compared to the population in China. Automobile consumption is still dominated by the first purchase of new cars, and market demand is far from being met.

Second, China's automobile and rural markets have been fully started. The market of 940 million farmers will inevitably guarantee the sustainable development of the automobile industry.

Third, the development of the automobile maintenance market will promote the steady development of the parts and components industry. It is estimated that by 2010 it will reach 80 million vehicles, and the increase in the number of cars will greatly increase the demand for parts maintenance.

4. The fourth possible change in the future: China's auto parts industry is further squeezed by multinational companies.
As auto multinationals enter China to open up markets, 70% of the world’s top 100 auto parts suppliers have come to China for business, and more than 1,200 foreign companies are producing auto parts in mainland China. The component market already accounts for more than 60% of the market share. The competition in the entire auto parts industry is very fierce. Domestic auto parts companies are facing tremendous pressure. China's auto parts and components industry lacks independent research and development capabilities and forms a dependence on foreign-funded enterprises in key components, resulting in the lack of market discourse rights for domestic auto parts companies. It can be predicted that in the coming period of time, China's auto parts industry will face further pressure from international multinational companies.

5. The fifth possible change in the future: China's auto parts industry is forced to transition to high-end.

In recent years, China’s labor costs are gradually increasing, and the prices of production factors such as land have also risen to varying degrees. The low-cost advantages of production factors that have lasted for more than two decades are gradually being weakened. Under such circumstances, some are sensitive to low costs. Enterprises have begun to shift outwards, and the remaining enterprises must strive to upgrade to the high-end of the industrial chain through R&D, design, branding, and marketing channels.

China's auto production reaches tens of millions of vehicles in the context of the development of domestic-funded enterprises

In 2009, China's auto production will exceed 10 million, and the goal of becoming the world's largest new car sales market will soon be realized. Under the background that China's auto production reaches 10 million vehicles, the auto parts industry must achieve leapfrog development.

1. In terms of scale, the output value of China’s auto parts has leapt to the fourth place in the world. However, under the background that the automobile output reaches tens of millions of vehicles, China should not be satisfied with becoming a world leader in auto parts production and should strive to become a strong country for parts production.

2. In terms of technology, China's domestic auto parts companies should increase their capital investment in technology, use independent innovation at a high starting point, master key and core technologies, provide more system products and system technologies for automakers, and become a global auto purchaser. An important link in the chain, at the same time, increase the communication and coordination between parts and components companies and vehicle companies, and form a positive interaction.

3. In terms of import and export, the state should encourage parts and components companies to “go global” and “import them”. The parts and components companies must optimize the export market and export product structure, promote brand strategy, and actively develop the developed country's auto market.

4. In terms of talents, it is necessary to attach great importance to the investment and training of automotive talents and to grasp the strategy of auto talent from the perspective of national strategies. We must adhere to the combination of the present and the long-term, and build a comprehensive personnel training system from high-end talents to technical operators. Make full use of the international automobile talent resources, and introduce and use well-qualified foreign auto talents.



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