Perspective components


Industry report

Automobile parts and vehicles are dependent on each other. The decline in the operating efficiency of General Motors Corporation of the United States led to the near bankruptcy of Delphi, its accessory company; Mobis, a South Korean parts company, stepped forward in China, directly promoting the advancement of Hyundai Kia Motors in China.

In 2005, for the auto parts industry, it could be described as “an eventful event”: Wande Group, China’s largest component manufacturer, entered the Changchun Clivia, and strategically entered the matching phalanx of FAW Group; Weichai Power, who is the second child Not to be outdone, he successfully controlled the “Torch Torch” and indirectly controlled Shaw Heavy Industries; the multinational giants such as Bosch Germany, Delphi USA, and Denso Corporation of the United States paid close attention to their formation in China; due to the increase in raw material prices, vehicle manufacturers cut costs, The years of sweet nourishment in the spare parts industry are no longer difficult...

In 2006, experts predicted that China’s auto industry will continue to grow at a rate exceeding double-digit growth. The parts and components industry will present opportunities and challenges such as “expansion of demand, favorable policies, upstream and downstream games, cross-border competition, and industrial clusters”. The pattern of development.

Opportunity: Positive policy

In March of this year, the “Liberation Limit” order for small-displacement vehicles issued jointly by the State Council and approved by the six ministries and commissions will be fully implemented. For domestic small-displacement vehicle manufacturers, this is undoubtedly good news.

The small-displacement car "restricted", followed by the introduction of a series of supporting policies. It can be foreseen that these favorable policies will open the door for the entire vehicle company, and at the same time as supporting parts and components companies will also usher in a greater space for development. It can be said that the small-displacement car "restricted" and domestic parts and components companies are the ultimate beneficiaries.

Some experts analyzed that the increase in the production and sales volume of small-displacement vehicles means that parts and components companies will provide more products for vehicle manufacturers. Low-displacement vehicles have lower profit margins, and manufacturers must consider more about cost control. In this regard, domestic parts suppliers undoubtedly have a great advantage.

The reporter recently learned from Beiqi Futian Changsha Automobile Factory that the parts and components companies in the province have occupied 50% of its suppliers. Kong Chaoyang, deputy secretary of the party committee of the plant, said that after the cancellation of the “small limit”, it is expected to reach more than 70%.

With the increase in production volume, the economies of scale of parts and components companies will gradually emerge, and their competitiveness will continue to increase, laying the foundation for integrating technology and capital into global procurement.

For example, there are 8 companies in the spare parts enterprises in our province, such as Autopass Auto Parts Technology, Boyun Braking Material, Hunan Torch Spark Plug, Changfeng Plastic Products, and Hunan Oil Pump, which have entered the field of vision of US General Motors global procurement.

Some experts pointed out that the decision issued by the State Council on the issuance of the “Interim Provisions on the Promotion of Industrial Structure Adjustment” promulgated by the State Council at the end of last year will also provide new opportunities for the breakthrough development of China's spare parts industry.

Challenge: Three "sweeping spells"

In 2006, the domestic parts and components industry was bathed in sunlight and could not escape the storm. "Upstream prices, downstream pressures, and multinational companies competing on the same platform" are "three clinging spells" that cause headaches for many parts and components companies.

Just started in 2006, international automakers and parts suppliers, watching the constant soaring prices of raw materials such as steel and pig iron, are already on their backs.

"For so many years, we have never encountered such a storm. The rapid rise in raw material prices has caused us unexpected surprises." Peter Rosenfeld, Deputy Minister of Purchasing at the Chrysler Group, said at the North American Auto Show.

Data shows that the average increase of international steel reached 20%-30%. As a major consumer of steel and pig iron, parts and components companies must be deeply affected. Some experts have analyzed that the huge cost pressures from international automobile manufacturers and parts suppliers will inevitably erode the domestic parts and components companies.

Upstream raw material prices, parts and components companies may be able to solve the cost control means. However, in the face of the lower prices of downstream hosts and OEMs, domestic parts and components companies are simply crying.

"The price of cars is falling every day, new cars are coming out on a monthly basis." This has become the norm in the domestic auto market. With the intensification of competition in the automotive market, price cuts have become a tried-and-tested weapon in the competition of vehicle companies.

RDA, the secretary-general of the National Association of Passenger Vehicles, revealed that profits from the automotive industry in 2005 were 60% of that in 2004, and the profit rate had fallen by nearly half. In order to ensure their own profit margins, the main engine manufacturers and automakers have to kill the players and lower the prices of upstream parts and components companies.

The domestic auto market is becoming increasingly saturated, and it is difficult for automakers to pass on the rising cost of manufacturing from raw materials such as steel products to consumers. The vast majority of this rising cost will be borne by parts and components companies.

It is understood that although China’s leading automobile axle manufacturer, the Hunan Automobile Axle Factory, has leading quality and first-rate development capabilities, it is helpless in the face of hostile prices and the reality of price reductions by automakers.

The external problems of domestic parts and components companies are particularly greater than internal problems. Following the footsteps of the global giants of 9+2 auto production, multinational car parts predators have entered camps in our country. According to statistics, at present foreign capital has occupied more than 60% of China's spare parts market share.

Delphi, who filed for bankruptcy protection in the United States last year, has a very strong presence in China. It is reported that it now has 15 companies, a technical center and a training center, with a total investment of over 500 million U.S. dollars, becoming the most powerful component group in the Chinese market.

As of 2005, more than 70% of the world's top 100 parts suppliers have started business in China. There are nearly 1200 wholly foreign-owned and joint venture companies that manufacture automobile parts in China.

In the face of "invading forces", domestic parts and components companies lacking technological advantages can only lose ground with the "labour low cost" and are simply unable to compete with the "invasion" of international "parties". Under the strong "attack" of international parts companies, the profits of domestic parts and components companies have shrunk dramatically.

Breakthrough: Relying on Industrial Clusters

Song Jianmin, director of the Provincial Machinery Industry Management Office, believes that the domestic parts and components industry must enter a virtuous cycle and develop rapidly. Only by taking the road of industrial clusters, establish an internal tapping mechanism and highlight its unique comparative advantages.

The promotion of clustering on the auto parts industry is immeasurable. It will effectively exert the effects of resource agglomeration, division of labor, collaboration, internal survival and elimination of the fittest, and resource sharing.

In the coastal areas represented by Zhejiang, the advantage of industrial clusters of parts and components has become apparent. Judging from the output value, the entire vehicle in Zhejiang Province ranks 10th in the country. However, its auto parts and components have steadily become the domestic runner-up, accounting for 60%-70% of the total automobile industry output in Zhejiang Province.

It should be said that our province has realized that industrial clusters have a great role in promoting the rapid development of the automotive industry. The forthcoming automobile industry development policy has planned to build three automotive industry clusters: Changsha Economic and Technological Development Zone, Yongzhou Changfeng Automobile Industrial Park and Xiangtan Jiuhua Industrial Park.

Li Jianxin, president of the Provincial Automobile Industry Association, said that to play the role of industrial clusters, it needs to solve three problems: First, in the auto parts industry cluster, all parties should form complementary relationships and reach a consensus in the direction of development. Suffer the test of changes in the market and the environment.

Secondly, all parties should seek common ground while reserving differences and seek and maintain common interests. This is the most important point. Otherwise, even if industrial clusters are formed, it is difficult to achieve sustainable development.

Finally, on this basis, a good cooperation mechanism will be formed to effectively resolve the conflicts brought about by different cultural backgrounds and different management methods.

The industry believes that in the face of cross-border component giants attacking cities, reducing cost-saving potential, highlighting their unique comparative advantages, will be the domestic parts and components industry to achieve a breakthrough magic weapon.

With the multinational companies competing on the same stage, domestic parts and components companies' products and brands are in short supply. However, in terms of services, domestic parts and components companies can do better, introduce faster response speeds and more meticulous services; on the product side, we cannot compete with multinational companies on all-line products, but we can focus on certain Specific markets and specific groups of people do better in market segments; in terms of technology, we cannot compete with multinational companies in high-precision, and we can compete for high technology in certain technology applications to form domestic parts and components companies. His own unique comparative advantage.


Piaggio Motorcycle Starter Motor

Piaggio Motorcycle Starter Motor,Motorcycle Starter Battery,Motorcycle Parts Starting Lever,Kick Start Motors

RUIAN ZHONGTE ELECTRIC MOTOR CO.,LTD , https://www.cn-zhongte.com