Once the local parts and auto factories are out of touch, they will not become a powerful automobile country.
The struggle for local parts and components this year has become even more apparent. The lack of core technology has already made it confined to the low-end market, and with the "joint autonomy" flag waving, foreign parts and components companies adhere to their own brand-up supporting needs while pursuing the high-end, local-owned parts companies. Forming a situation of reclamation.
"Hidden" Monk is busy cultivating
As China secures the throne of the world’s largest automobile production and sales power, and many other global automotive markets have not yet fully recovered, multinational component companies have bet on the Chinese market. At this year's Shanghai Auto Show, in addition to major international component manufacturers such as Bosch, we also discovered some unfamiliar faces from European and American small and medium-sized component companies. German component suppliers even opened the conference as a whole.
China’s car sales have been climbing steadily over the years, and China’s auto parts industry is also the most profitable in the world. Of the total price of a car, parts and components account for 60%, and the remaining 40% is the total assembly cost, marketing cost, and profit of the vehicle manufacturer. In 2010, auto parts sales revenue was 1.644 trillion yuan.
In 2007 and 2008, the profit rate of Chinese parts and components companies was still lower than that of Japan and Europe. According to a research report on auto parts and components published by AlixPartners, the international automotive industry consultancy in 2010, the profit rate of China's auto parts industry was 8% to 10% in 2009, which is 2 to 4 percentage points higher than that of the vehicle industry. The actual situation in 2010 and 2011 was that this figure exceeded 10%.
According to industry sources, “parts companies’ profit margins are higher than that of OEMs. Many foreign-owned parts and components companies are developing in emerging markets such as China, mainly because their profit margins are higher than mature markets, and their profit margin growth rate is higher than sales growth. proportion."
The analysts in the industry are more certain that the profit rate of the parts companies with monopolistic positions will be even higher, even as high as 20%. “In general, parts and accessories companies have double the profit margin of the automakers. It depends on sales volume and scale to reduce costs."
In response, Klaus Braunig, executive director of the German Automotive Wealth Association, said that German auto parts suppliers have rapidly developed following the rapid growth of the passenger vehicle market in China in recent years. As of 2010, German auto parts suppliers have set up 180 production plants in China (including wholly-owned, joint-venture, or holding factories). The number of employees in China exceeds 60,000. In mid-2009, this number is still not only To 50,000.
According to the latest data from the Ministry of Commerce, foreign-invested parts and components companies control most of the market share of auto parts sales, and domestic sales of parts and components only account for 20% to 25% of the total industry. Auto parts manufacturers with foreign backgrounds account for the entire industry. More than 75%. Among these foreign-funded suppliers, wholly-owned enterprises accounted for 55% and Sino-foreign joint ventures accounted for 45%. Many foreign-funded parts and components companies have been working hard in China for more than a decade or even decades, no matter if you are familiar with them.
Brose Group, a supplier of electromechanical systems and motors from Germany, is a typical example. Brose entered the Chinese market in 1995. At present, Asia is the fastest growing region in Brose. In 2010, Brose Asia had sales of approximately 500 million euros, an increase of 70% over the previous year. Among them, the largest contributors to growth are Brose’s five companies in China in Shanghai, Wuhan and Changchun.
At the same time, consistent with many other foreign-funded parts companies, Brose’s Asia R&D headquarters plan in Shanghai has already started. Aisin Seiki, Valeo, and Harman, which includes automotive entertainment system providers such as tires, glass, wipers, sunroofs, engines, and gearboxes, are all strengthening domestic R&D, capital increase, Build a new production base or R&D center, hoping to cut even bigger cakes.
The dilemma of local parts and components
In stark contrast to the enthusiasm of foreign-invested parts and components companies to aggressively enter the Chinese market, local parts and components companies have still not been able to open up the situation. The earthquake in Japan in March made Japan's auto parts companies give up a "vacant land", but the opportunity was taken away by European, American, or Taiwanese suppliers.
At present, there are only a few auto parts companies, such as Huayu Automobile and Fuyao Glass, which are a little known in China. Key component suppliers represented by Euro-Yide are also actively exploring the market.
According to statistics, there are more than 20,000 domestic parts and components companies, including nearly 8,000 auto parts enterprises above designated size. However, local parts and components companies generally have weak independent research and development capabilities, product convergence, and low technical content, especially the core technologies of the main car assembly and key components. 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%. What is embarrassing is that local companies account for over 80% of the domestic parts market, while sales only have 20%, and 90% are concentrated at the low end.
Among the industry's most concerned new energy automotive industry, local component companies that have been placed on leap-forward development have failed to make breakthroughs. Since 2008, China has begun to adopt more and more imported key components in the field of new energy vehicles. The in-depth development of foreign-funded parts and components companies in China will also involve new energy vehicles, commercial vehicles, and special-purpose vehicles.
This year, foreign-invested parts and components companies have established or started R&D centers in China. Delphi, Bosch, Continental, and Denso, the world's component parts giants, have been developing low-cost, low-cost and highly-usable products to attract self-owned brand auto companies. On the other hand, the local parts and components companies have naturally replaced the local parts and components companies that are unable to keep up with their own brands by increasing the production investment and increasing the investment in technology and immersing themselves in the low-end market to earn large amounts of money.
"Now, multinational companies have already entered China's self-owned brand car companies. With superior prices and comprehensive technologies, they will certainly have a huge impact on China's original low-end accessories," said industry sources. The new products developed by foreign-funded parts and components for their own brands are called economic products within the company. They are distinguished from the high-end products in the past and the price is slightly higher than the local parts, but the technology and quality are higher than the domestic parts. “This is very "Destructive force", it is difficult for independent brands to resist.
The self-owned brand known as “Vertical Integration†has a self-sufficiency rate of 67.0 percent for parts and components, which not only enables the company to develop at high speed but also gains superior profits, once envied the industry. However, more and more self-owned brands have begun cooperation agreements with foreign-funded parts and components companies. The slogan of “integrating global car repair resources†is so helpless.
The lethality of foreign parts is reflected in its technical monopoly. In the context of automotive modularization, once a company’s parts are used in a site, the entire site must use the company's entire enterprise. Other companies cannot support it. These are high-end upstream technical products, and domestic self-owned branded parts and components companies cannot at this point.
Once the local parts and auto factories are out of touch, they will not become a powerful automobile country. The foreign-funded enterprises are aiming at the time when the self-owned brand companies have not yet entered the mature period, and they have to enclose the independent core component companies. As long as the low-cost strategy of foreign-funded enterprises lasts for two or three years, the self-owned brand enterprises will not be able to follow up. Afterwards, foreign-funded enterprises will carry out product upgrades and increase prices. At that time, domestic auto companies will once again lose their right to speak on prices.
Gm Harmonic Balancer,Gm 5.3 Harmonic Balancer Puller,Gm Harmonic Balancer Puller,5.3 Harmonic Balancer Puller
Ningbo Maixun International Trade Co., Ltd , https://www.nbmachinery.com