According to the statistics, in China, 72% of the auto parts companies with foreign investment background accounted for 55% of the entire industry, of which sole proprietorships accounted for 55%, and Sino-foreign joint ventures accounted for 45%. Correspondingly, foreign capital controls most of the industry. Parts market share. Coupled with the fact that the key technology market is almost monopolized by foreign capital, how can China's domestic auto parts companies crack the “sandwich†crisis and how can they survive under the pressure of cross-border component companies?
This is all a problem.
Self-owned parts companies
The March earthquake in Japan hit Japan's auto parts companies. Faced with a sudden vacancy, the company once let a few domestic auto parts companies have a dark heart and thought it could fill this broken automotive supply chain. But joy quickly turned into disappointment.
“The core technologies are mainly owned by wholly foreign-owned or joint-venture companies. It is difficult for local parts and components companies to make major breakthroughs in key technologies. As a result, they are looking at opportunities that have been taken away by European and American suppliers or suppliers in Taiwan.†The chief engineer of the factory research institute stated this way.
According to incomplete statistics, there are more than 20,000 domestic parts and components companies, including nearly 8,000 auto parts enterprises above designated size. However, there are few real scale requirements and the industry is very fragmented. At the same time, local parts and components companies generally have weak independent research and development capabilities, product convergence, and low technological content, especially the core technologies of the main car assembly and key components. The reality is that local companies account for more than 80% of domestic components, while sales only have 20%, and 90% are concentrated at the low end.
The data shows that in the production of automotive EFI systems, engine management systems, ABS, micromotors and airbags, the proportion of foreign-funded enterprises is 100%, 100%, 91%, 97% and 69%, respectively. According to a survey conducted by the National Information Center, 78% of the automatic transmission market in China is imported.
Prior to this, the industry generally believed that local parts and components companies could achieve breakthroughs in the leap-forward development of the new energy vehicle industry. Since 2008, however, China has begun to adopt more imported key components and parts in new energy vehicles.
According to a survey conducted by the National Information Center, it is very difficult for a complete Chinese-funded enterprise to enter the first-tier suppliers of joint venture products. Among them, 100% of the component suppliers selected for the US-based models in China are foreign-funded enterprises, while the German- This proportion of Japanese and domestic self-owned brand models is also 88.9%, 89.5% and 52.8%, respectively.
It is even more noteworthy that joint ventures or sole proprietorships have begun to move to the low end after gaining pre-scale advantages. For example, Bosch has developed parts specifically for low-end vehicles to cater to self-owned brands that are increasingly moving to the high-end market. The matching requirements will once again bring a new round of crisis to local components companies with cost as the main advantage.
Close combat
According to industry insiders, in fact, some domestic spare parts companies already have the R&D capabilities of individual parts, but they lack the ability to integrate parts solutions.
The ability to integrate components and components in a package solution is not achieved through the introduction of foreign capital to build factories or joint ventures. Practice has proved that if a joint venture can not acquire core technologies, mastering the core technologies requires independent research and development or the acquisition of overseas technical features. High-quality auto parts companies to achieve.
In fact, overseas acquisitions of domestic parts and components companies are already in progress. In March 2009, Geely Automobile acquired DSI Automatic Transmission Company. In the same month, Beijing Jingxi Heavy Industry announced the acquisition of Delphi's related machinery and equipment, intellectual property and real estate, including Delphi's braking and suspension business at eight plants, five technology centers, and 14 technical support and customer service centers worldwide.
There are more and more cases of local brands acquiring overseas technology this year. On April 8, AVIC Automotive and Beijing Yizhuang International jointly acquired Nexteer Automotive Systems; Ningbo Junsheng acquired German microcontroller manufacturer Preh. In June, Hainagawa will transfer equity with Innafa. “There will be a trend of overseas acquisitions in the coming period of time. Now that some local parts and components manufacturers have made a lot of profits through previous accumulation, if we want to win in the next competition, we need to improve the competitiveness of core technologies. Acquisition is also a shortcut, and self-development takes a long time,†said a securities industry auto analyst.
Car senior analyst Jia Xinguang believes that Chinese-funded enterprises should also pay special attention to the acquisition management problems. If the acquisition cannot be digested, it will not be able to achieve the acquisition targets of Chinese-funded enterprises. Rao Da, Secretary-General of the National Passenger Vehicles Association, also reminded us to be alert to whether the purchased technology is accompanied by patent rights. If there is no patent right, even if one hundred percent of the company’s shares are purchased, it still needs to spend money on technology.
Chen Wenkai thinks: “I don’t believe technology can be bought over, but technology has to be developed by a little bit. Nowadays, most of the domestic auto parts companies are engaged in individual operations, and investment in R&D is very weak, and there is an urgent need to increase investment.â€
According to statistics, in the developed countries of the automotive industry, the average investment in the parts and components industry is generally 1.2 to 1.5 times that of the entire vehicle company. The research and development capabilities of auto parts companies are ahead of the vehicle manufacturers. However, the current average investment in China's auto parts industry does not exceed 0.3. At the same time, the average R&D input of Chinese parts and components companies accounted for only 1.4% of sales revenue, far below the international average of 6.6%.
In addition, "the relevant departments should organize joint research, select a number of key components and assemblies, organize domestic enterprises to tackle joint research, and give full play to the strength of the entire group company. It must be clear that strong autonomous autos must match strong autonomous components. Do bigger and stronger first and form a scale effect,†said an industry source.
Wang Xiaoguang, a researcher in the Department of Policy Consulting at the National School of Administration, believes that “individual brands will promote the formation of a new global automobile supply chain in China, and market advantages will promote the scaled development and innovation of the parts and components industry. This is an opportunity for local parts and components companies.â€
In addition, there are also industry insiders that the state should give policy incentives and strong support to the auto parts industry, especially the key components and automotive electronics industry. We will focus on encouraging domestic-funded enterprises to acquire and acquire overseas key advanced component technology companies and overseas R&D institutions, and provide support and assistance in terms of policies and funding.
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