Market reform goes deep into anti-monopoly trend towards auto parts


With the deepening of market reforms, the anti-monopoly trend began to scrape into the auto market.

A few days ago, the China Automotive Technology and Research Center Automotive Industry Policy Research Office called on relevant parties to call for the breaking of the absolute monopoly position of auto parts manufacturers to resolve the chaotic situation in the auto repair market. In response, Zhang Li, deputy director of the Department of Comprehensive Strategic Research of the Ministry of Commerce, analyzed the reporter: “The anti-monopoly of auto parts is to a certain extent to cater to the new round of reform and opening up of the central government and further open up the upstream and downstream markets of the auto industry. ”

In fact, the industry's monopoly on auto parts has long been controversial, and the reason why things are highly valued at the current point in time, in addition to the current circumstances of the government reform, the auto parts industry's mature development trend is also one of the incentives. From the perspective of the industry as a whole and the auto parts industry, it is imperative to break the monopoly of auto parts manufacturers for parts. However, people in the industry are concerned that the elimination of monopoly may cause market confusion in the short term.

"Pioneers"

Auto parts are likely to become the "vanguard" of the auto industry to deepen market reforms.

"Include the automotive industry, many industries are now carrying out anti-monopoly measures. This is to cater to the country's demands for comprehensive deepening of reforms and allow the market to play its biggest role." Zhang Li told reporters as one of the most representative industries. The automotive industry has recently been attempting some major changes, including the monopoly of auto parts and the equity ratio of joint ventures, all to deepen market reforms and allow companies to fully compete to promote the upstream and downstream of the overall industrial chain. progress.

Judging from the current situation, the automotive joint venture companies that are still in dispute are more likely to let go than they are. The auto parts anti-monopoly in the downstream of the industrial chain has apparently taken a step forward.

Recently, Huang Yonghe, director of Automotive Industry Policy Research Office of China Automotive Technology and Research Center, convened the relevant departments of the Department of Road Transport of the Ministry of Transport and the Automobile Maintenance Association, automobile repair companies, insurance industry and auto parts industry, and convened “about exposing vehicle maintenance technology as soon as possible. The "Information Seminar" called on automakers to disclose technical information on vehicle maintenance and to break the absolute monopoly position of auto parts manufacturers.

It is reported that the current legislative unit is advising relevant departments to make policy adjustments and intends to break the monopoly of auto parts manufacturers' original parts channels and restrictions on parts suppliers through the promulgation of regulations. The relevant person in charge of the Ministry of Transport also proposed that as the competent department of automobile maintenance companies, the Ministry of Transportation and Communications will instruct the relevant departments to promote the disclosure of technical information on vehicle maintenance and enable the automobile maintenance industry to develop healthily.

Prior to this, the Director of Price Supervision, Inspection and Anti-Monopoly Bureau of the National Development and Reform Commission Xu Kunlin also stated frankly about the monopoly of auto parts: “We are collecting information and there is no official case at the moment. Some anti-monopoly investigation information revealed that it is not conducive to us to collect evidence. In fact, we I have been doing a peripheral investigation.”

Industry insiders believe that this means that auto parts monopoly has caused widespread concern and attention. Once the case is filed and the auto manufacturers’ monopoly in this area is broken, auto parts may be the first to introduce a more adequate market competition mechanism and become a deepening of the auto industry. Market reform is the "leader".

Tough battle

The auto parts industry has generated the need for optimization and upgrading internally.

In the eyes of the outside world, the recent changes in the auto industry will not only come from the general trend of deepening market reforms, but also the automotive industry, including the demand for optimization and upgrading of the auto parts industry in the downstream, in order to promote the industry into a new stage of development.

In fact, the monopoly problem of auto parts has a long history. “The auto parts monopoly has always existed, and after the official implementation of the “Implementation Measures for Automobile Brand Sales Management” (hereinafter referred to as the “Measures”) in 2005, the auto parts monopoly pattern has basically taken shape. In the entire vehicle sales contract, there are manufacturers for auto parts. Some of the monopolistic requirements, and dealers must obtain authorization through the auto manufacturer's authorization.” Zhang Zhiyong, a well-known commentator in the automotive industry, told reporters.

The resulting monopoly of auto parts mainly exists in both supply channels and prices. Distributors cannot purchase spare parts for other channels, and can only purchase and sell “original” accessories provided or designated by manufacturers. As a result, auto manufacturers have almost absolute power to determine the price of accessories, leading to high prices for accessories. Moreover, auto manufacturers usually require their component suppliers to supply external accessories in order to maintain the high after-sales profit brought about by the monopoly of accessories.

As a result, “original” accessories cannot be circulated in aftermarkets other than authorized dealers, and the products of other parts and components companies cannot enter the dealer’s aftermarket system. The market competition mechanism plays a very limited role.

“The monopoly of accessories has been going on for many years, because the resources are controlled by automakers, and dealers have always had little right to speak. However, as the pressure on dealers continues to increase, the profits of sales links continue to narrow, and the competition of dealers has changed. The trading cycle continues into the post-market. To attract consumers with better service and lower prices, the monopoly of auto parts must be broken, said Yan Jinghui, deputy general manager of the Beijing Yancheng Asian Games Village Auto Market.

On the other hand, with the continuous expansion of the market size, the overall production capacity and technology of the auto parts industry have been greatly improved, and more and more auto parts manufacturers have been able to meet the “original” standards of auto manufacturers. The monopoly of auto parts not only restricts the dealers' right to purchase independently, but also restricts the development of the auto parts production industry and becomes a prelude to the optimization and upgrading of the industry.

Pre-road insurance

While introducing auto parts into the market, some risks will also be introduced.

"As China's car ownership increases, the automotive industry has also undergone fundamental changes. Past industrial policy is based on the production of enterprises as the core, and when the seller's market is transformed into a buyer's market, the policy should also be consumer-oriented. The core changes the policy to promote the industry's growth, Zhang Zhiyong said.

The executive vice president of the Institute of Automotive Industry Economics Wang Hao also told reporters that, from the point of view of the cause, the current auto parts monopoly is the "measures" do not allow dealers to use other parts of the channel caused by the provisions, so to break Monopoly, we must amend the relevant regulations. This will not only allow distributors to have their own procurement rights, but also allow the parts and components market to introduce competition.

However, people in the industry are concerned that while breaking the auto parts monopoly, the original parts quality assurance system will also be shaken. Once the market is fully liberalized, dealers eager to increase profitability will be able to self-discipline, be responsible to consumers, and not be shoddy in the procurement and sales links. This is the biggest risk that auto parts dealers will face after they break the monopoly. In addition, sufficient market competition may also lead to the entry of a large number of fake and shoddy products, which will damage the interests of consumers.

“One-time release of the accessory market is definitely not acceptable, or there is a need for a gradual process. For auto parts quality, parts and components manufacturers should establish a new assessment mechanism, in addition to diversified supply channels, to ensure the orderly operation of the market "Yan Jinghui believes that "the auto parts market should be gradually liberalized and the government needs to formulate corresponding standards and norms to supervise the overall market industrial chain."

Obviously, this is not a goal that can be achieved in the short term. After all, for the market reform of the auto parts industry, the current anti-monopoly measures in the industry are just a beginning.


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