Independent research and development - the road to self-reliance of Chinese auto parts companies
China's auto market, with the “6+3†(GM, Ford, Toyota, DaimlerChrysler, Volkswagen, Renault-Nissan, BMW, PSA and Honda) and other multinational auto giants have completed investments in China, China Automotive The production of parts and components began to appear localized. According to statistics from relevant state agencies, there are more than 5,000 auto parts enterprises in the country, of which more than 1,200 are foreign-invested enterprises, and many are Fortune 500 companies.
China's auto parts companies have been plunged into difficulties in varying degrees and have struggled. Of course, the reason is complicated, but it is not unrelated to Chinese companies that are weak and weak. Domestic auto parts products have low supporting capacity for cars and cannot compete with multinational giants. As a result, we have to squeeze in the battlefield of commercial vehicles to fight for your own lives, compete for price reductions, rapidly decline in product quality, and eventually lead to a quagmire of vicious competition.
Compared with the international auto parts giants, Chinese companies are obviously at a disadvantage and can only be regarded as “small Jia Biyuâ€, and the parts and components industry is facing severe challenges.
The biggest crisis in China's parts and components industry is mainly due to poor R&D capability, lack of core technologies and independent intellectual property rights, and many companies are purely processing enterprises, and they can only rely on paintings, and few companies have independent research and development capabilities. Not to mention simultaneous research and development with domestic and foreign automakers. The inherent deficiencies in the research and development of these enterprises have led to a lack of core competitiveness and can only be divided into a few cups of debris in the market. It is difficult to make the company bigger and stronger. The second major crisis is that China's spare parts companies have a single product and cannot adapt to the changing needs of the market structure. This terrible "highly specialized" cannot take on the ever-changing market risks and lacks the ability to fight against it. Once the market changes, it will surely die. For a long time, China's spare parts industry has been relying on the survival and development of commercial vehicle vehicles. Domestic auto parts companies have low supporting capacity for cars and it is difficult to compete with transnational giants. In addition, the small size of enterprises, low production, and high production costs are also important bottlenecks restricting the development of enterprises, in the face of the predicament that raw material prices have risen and automakers have pushed prices down.
The author believes that China's parts and components companies that are in difficulties are not besieged by all sorts of things, and can do nothing to overcome their weaknesses. The reasons are: the international auto giants are under pressure to reduce production costs, procurement is increasingly internationalized, and Chinese companies can fully grasp the “good opportunity†and break into the international market.
In fact, many domestic auto parts companies have also realized this and seized this opportunity to actively enter the international market. According to statistics from relevant state agencies, the total export value of various types of auto parts in China last year totaled 7.37 billion U.S. dollars, a year-on-year increase of 70.85%. China has exported automotive parts and components to 195 countries (regions) in the world and has spread across six continents. However, behind the data, it is difficult to conceal the problem: Most of the export products are low-end products with low technological content and rely mainly on low-price competitive advantages to enter the international market. This situation is worrying because such a large number of low-price and low-tech products may flood into the international market and may become another "textile problem" tomorrow. The situation of embarrassing investigation and prosecution everywhere will come sooner or later. To Chinese auto parts companies.
It is precisely because of the low technical content of domestic export products that they can only enter the international automotive aftermarket. However, this situation is gradually improving. Like Zhejiang Wanxiang Group and Dongying Auto Parts, Chinese auto parts companies that have gradually entered the international OEM market began to emerge, relying on their excellent product and management capabilities, especially their independent research and development capabilities. This gives us an inspiration: whether it is based on the domestic market or break into the international market, Chinese parts and components companies must improve their R&D capabilities, develop core technologies, and build their own brands. Without an independent brand, there is no right to speak and there is no “pass†to go to the international market. This is an irrefutable truth. Experts suggest that the state should also pay attention to the development of auto parts enterprises. Through policy support and capital investment, it is necessary to encourage the joint and restructuring of basic and powerful parts and components companies, to become bigger and stronger, and to create first-class spare parts with international competitiveness. Business, so that the national auto parts industry out of the encirclement, to the world.
Source: Shanghai Automotive News
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