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Analysis of the development of China's auto parts industry market

Published Time:2011.08.18 News source:Danyang Liwang Vehicle Parts CO.,LTD Views No.
At present, Chinese auto parts companies a total of 20,000, auto parts enterprises above designated size was nearly 8,000. However, very few actually achieve the scale required, the industry is very fragmented. Meanwhile, the local parts enterprises generally weak R & D capabilities, product convergence, and low-technology, especially the lack of car assembly and key parts of the main core technologies. Embarrassing reality is that local parts enterprises accounted for 80% of the total number of parts enterprises, and has sales of only 20% and 90% concentrated in the low-end.
China firmly installed as the world's largest automotive production and marketing powerhouse, as well as many other global auto market has not fully recovered, parts enterprises have also begun to cross-border betting the Chinese market, capital increase, new production base or R & D center, hoping to sub- bigger cake.
Insiders believe that some Chinese companies already have a single spare parts spare parts R & D capability, but lack the overall capacity of the solution components. Practice shows, the joint venture will not lead to core technology, it is necessary to master core technologies through independent research and development or acquisition of foreign technology features with the small and medium enterprises to achieve high-quality auto parts.
In fact, the domestic parts companies overseas acquisitions in recent years has been carried out. Such as Geely acquisition of DSI automatic transmission companies, Beijing announced the acquisition of Delphi BWI related equipment in the aircraft industry and the Beijing Yizhuang international automotive joint acquisition of resistance to Shite Automotive Systems, the acquisition of Ningbo have won the German micro-controller manufacturers Preh, etc. and so on. The next period of time will form a trend of overseas acquisitions.
Overseas acquisition is indeed a shortcut, should focus on encouraging the acquisition of overseas-funded enterprises with advanced technology, the core components of enterprise and foreign research institutions, policy and funding support and help. But to be alert to whether the technology bought with patents, if not patent, even if one hundred percent of the shares to buy other companies, is still not their own.
In addition, insiders said, in addition to overseas acquisitions and, more importantly, independent research and development, now China's largest independent parts companies are fighting single-handedly, and R & D investment is very weak in urgent need of increased investment. Therefore, countries should have the auto parts industry, especially the key components and automotive electronics industry policy to encourage and give great support, policy and funding support and help. Countries should accelerate the development of automotive electronics industry specific development plan, automotive electronics technology is the vehicle's core technology, technological progress and innovation in the automotive industry 70% from the automotive electronics technology. At the same time, should foster the development of key components of domestic enterprises to improve the level of R & D, the core competitiveness of the support policy. Parts enterprises in China now average R & D investment accounted for only 1.4% of sales revenue, far below the international average of 6.6%. Therefore, the proposed focus of the national authorities make the key components to support R & D Products, R & D investment of domestic-funded enterprises in the fiscal and financial policy support and other issues. Components should be the core technology to establish a national competitive edge, basic research and development platform. Countries to support the R & D investment, and automobile companies, research institutions, parts business contracts, three R & D results achieved benefit.
Finally, should further strengthen auto parts export bases. This is not only to promote the sustainable development of the automobile industry is very important, but also help alleviate the contradiction between the domestic excess capacity, speed automobile industry restructuring; help promote the enterprises to improve their capability of independent innovation, the development of independent brands; help regulate the export order, protection of intellectual property rights. The relevant departments should organize joint research, selecting the right number of key components and assembly, organization of domestic enterprises to conduct joint research. The strength of the entire group to play, to clear the vehicle must match the strength of a strong self-independent parts. First big do strong form of scale.
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