China's auto parts industry will enter the "blowout period"
"China's auto parts industry will enter the 'blowout period' and parts will also enter the international market ahead of the vehicle." At the recent Western China Heavy Vehicle Development Summit Forum held in Xi'an, automakers and automotive experts China's auto parts industry is generally optimistic about the prospects.
According to reports, in recent years, the world's auto parts industry has developed rapidly. In 2003, the total volume of international trade reached 1.2 trillion US dollars, and the output value has accounted for 70% of the added value of the auto industry. Last year, China’s auto parts exports amounted to 2.4 billion U.S. dollars. Although it only accounted for 0.2% of the total trade volume in the international market, the development was also relatively rapid, an increase of one-third over the previous year.
Sun Bohuai, chairman of the China National Machinery Industry Enterprise Management Association, said: "Although China only eats a small piece of the big cake, it still shows a good growth in China's spare parts industry."
In 2003, with 464 auto parts manufacturers with sales of over 100 million yuan in China, companies with annual sales of over 300 million yuan accounted for 30%, and some companies had annual sales of more than 10 billion yuan. Corporate sales revenue increased by an average of 36% over the previous year, and profit before tax increased by 46%. In particular, the output value of new products reached 13.7% of total sales, an increase of 48% year-on-year.
However, at present, the overall technical level and production scale of China's auto parts still lag behind the international advanced level. Sun Bohuai said that China’s auto parts industry generally has low industrial concentration and weak product development capabilities. Systematization, modularization, and poor supply of electronic products have low technical content in export products. How to survive in the competition and make it bigger, stronger and longer is a problem that China's auto parts manufacturers must face.
“In the face of the general trend of global procurement of parts and components, Chinese auto parts manufacturers should become familiar with market rules as soon as possible, adapt to international competition, start with low-end and mid-to-end products, and accumulate technology to grow a number of internationally competitive companies. Component Enterprise Group, said Zhang Xiaoyu, executive vice president of the China Machinery Industry Federation.
It is understood that in order to quickly enter China's auto parts enterprises into the international market, the Ministry of Commerce has commissioned its international e-commerce center and China Automotive Engineering Society to cooperate and plans to establish China's auto parts credit certification system and related databases in 3 years. To speed up the process of internationalization of China's auto parts industry.
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