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China's auto parts industry faces four major bottlenecks
[ Release time:2018-6-14  Read:2917Times ]

In recent years, international multinational auto parts and components companies have entered China and are temporarily attached to vehicle companies. The capital, technology, management, R&D, and other obvious disadvantages of the country's auto parts industry are facing an unprecedented challenge. Globalization promotion, synchronized R&D, modular supply, and neutral development have become the four major bottlenecks facing China's auto parts industry. Faced with the challenges of globalization, the industry believes that the country's auto parts industry needs to break the “doorway” market concept and urgently needs to obtain tickets to enter the global sales platform.” In this connection, the reporter interviewed the partners of Stanley Consulting Co., Ltd. and senior members of the parts industry. Researcher Gao Jinhua.

In addition to the joint venture with international multinational auto parts and components companies, the auto parts companies that have not been able to make breakthroughs in technology research and development in the short term will have no other ideas. The development prospects of the entire industry are worrying.

The major bottleneck faced by the country's parts and components industry is R&D capability. Due to the low level of research and development, there is no independent brand, but can only imitate the production of other people's products. Most of the country's parts and components companies can not meet the requirements of simultaneous research and development, not only difficult to match with new models, but also can not prevent the risk of losing the aggressive market. Followed by globalization promotion. At present, the overall level of manufacturing of China's auto parts and components industry is low, management is extensive, and interest control is weak, and it is unable to adapt to users' global marketing requirements such as product quality, cost, and delivery date. In particular, with regard to interest control, with the frequent implementation of the sedan car price war, interest pressure has shifted from time to time to parts and components, and the country’s auto parts and components enterprises have faced great challenges in controlling interest rates. It is estimated that at least 5% of the current vehicle price reduction will be passed on to parts and components companies.

Compared with the limit ratio of 50:50 for a complete vehicle, the auto parts field has no restrictions except that new energy vehicles set the same restrictions on energy-type power batteries, and the degree of opening up is also increasing year by year. More and more open items indicate that compared with foreign-funded parts and components, the development of China's parts and components industry is still lagging behind, and it is necessary to learn from foreign technologies to shorten the differences with international parts and components companies from time to time.

The third is modular supply. Modular supply is a new management concept and business model brought about by global marketing. It imposes strict requirements on the production and management level, assembly labor productivity, interest control capability, and electronic level of parts and components companies. At present, the parts and components companies in China differ greatly from foreign companies in this respect and cannot keep up in the short term. Especially in terms of integration and electronics, due to backward technology, most parts and components companies in the country can only produce primary labor-intensive products. Therefore, Gao Jinhua believes that the added value of products is low, and the entire vehicle companies can only implement the second and third levels. Supporting, it is difficult to enter the ranks of ancillary suppliers.

In addition, the lack of capital investment, small production scale, small quantities, and weak strength make it impossible for China’s auto parts companies to compete with international multinational parts companies.
The increase in the level of market opening has brought opportunities to parts and components companies as well as risks. How can autonomous component companies prevent foreign companies from controlling the Chinese market? In fact, judging from the current market development situation, China’s parts and components have been under control, Gao Jinhua said, but I still have to work hard to invent conditions and take the initiative to invent breakthroughs and development opportunities.

The foreign zero-relation relationship is a relationship of mutual promotion and benign development. The vehicle spare parts enterprises in foreign rural areas will give priority to protection. The country’s zero-sum relationship should also be the same. The government should invent more cooperation opportunities for parts and components companies and OEMs, promote the coordinated development of the zero-sum relationship, and formulate a safety mechanism to eliminate the quality of auto parts and components for OEMs and consumers. Concern and encourage the market to give priority to the selection of self-owned branded component products.




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