Cross-border component companies in China through localization into the low-end market
In recent years, many auto parts companies in developed countries have shifted their product lines one after another to enter the low-end auto parts market in China to squeeze the survival space of Chinese auto parts auto parts companies.
Entering the low-end market through "localization"
The performance of the host product is improved and higher requirements are placed on the quality of components. China's own branded component products are concentrated in the low-end market. For example, China has more than 20 independent brand automotive bearing companies, which are mainly concentrated in the low-end market. On June 9, 2014, Tao Fabiao, Chairman and General Manager of Beijing Taixin Watch & Control Technology Co., Ltd., said in an interview: “The price competition among these low-end auto bearing companies is extremely fierce and hinders the upgrading of the domestic auto bearing industry. ."
Developed automobile bearing enterprises in developed countries have begun to conduct localized production in China to reduce costs. At the same time, through the use of their brand influence, local production has entered the low-end bearing market in China, at the cost of competing with Chinese self-owned brand bearing companies. For example, in addition to mid- to high-end bearing types, SKF has extended its business to bearings, bearings, greases and other industries. It has invested in Changchun and Jinan to build passenger cars and commercial wheel hub bearings. Schaeffler has established facilities in Taicang and other places. Factory, wholly-owned production of automotive bearings.
After in-depth investigation and research, Tao Fabiao realized: "Multinational companies enter China's low-end auto parts market through 'localization' not to make more profits, but to make their competitors unprofitable." In addition, Parts companies in developed countries have "joint ventured" to weaken the competitiveness of Chinese self-owned branded parts and components companies. Foreign parties basically adopt the following "reasonable" rules: Joint ventures lose money year after year, and China cannot afford it. They can only transfer equity, that is, they are forced to give up the original low-end parts and components market.
Auto parts companies in developed countries also use their brand and geographic advantages to monopolize the entire vehicle market for foreign brands. “Under the strategic layout of the automobile bearing companies in developed countries, is there still no future for the Chinese bearing industry?†Tao Fabiao was deeply worried.
Compete for the supporting right of China's independent auto companies
On June 10, 2014, Chen Jianhai, general secretary of the Auto Metering Committee of the China Association of Automobile Manufacturers and general manager of Anhui Jinhaida Automotive Electronics Co., Ltd. said in an interview: “The developed auto instrument companies march into the low-end market in China and mainly compete for China. The market for self-owned brands of passenger cars and some commercial vehicles, for example, Continental Automotive of Germany mainly supplies Geely Dorsett Automobile, Great Wall Motors, China National Heavy Duty Truck, SAIC, Guangzhou Automobile, FAW's own brand cars and Foton heavy vehicles; Supporting Chery Automobile, Changan Automobile, FAW and JAC Commercial Vehicles, has just been involved in JAC Passenger Vehicles and Great Wall Motors; Johnson Controls Group mainly supports Dongfeng's own-brand vehicles and FAW Vehicles; Japan's Yazaki mainly supports Great Wall Motors; Marelli participated in Chery and the Great Wall , Dongfeng and other series of low-end product development."
Currently, only some of the domestic brands of heavy trucks, passenger cars, mini-vehicles, light trucks, and agricultural vehicles are supplied by self-owned brand instrument companies.
Prefers China's small car automatic transmission market
In 2018, the annual demand for small cars in China will reach 4.6 million.
On June 11, 2014, Li Shengqi, secretary-general of the China Automotive Automatic Transmission Innovation Union, said in an interview with reporters: “The domestic small car market has huge capacity and has induced multinational companies to take action.â€
Volkswagen will develop small cars and minivans with unit prices ranging from 50,000 to 70,000 yuan on the PQ platform, equipped with a 5-speed manual transmission or ZF 6AT (6-speed hydraulic automatic transmission). Volkswagen even has its own plan to develop a 150N.m miniature dry dual clutch automatic transmission to enrich its product line and increase the overall vehicle competitiveness.
GM has long been cheap and compact models (price of 50,000 yuan) Baojun 630 and Wuling minibus in China's county and township markets have received lucrative market returns, will also be equipped with the corresponding low-end transmissions to enhance the competitiveness of the vehicle.
Toyota launched the new Vios and Hi-Hyun priced from 50,000 to 80,000 yuan, equipped with a 5-speed manual transmission or Aisin 4AT, 5AT or CVT.
Nissan will launch the Datsun Go and Go+, which is priced at about 50,000 yuan, and will be equipped with a 5-speed manual transmission or an economical automatic transmission 6AT specially developed for the Chinese market.
Bosch Launches Economy High Pressure Common Rail System
Most of the domestic commercial vehicle companies and diesel engine companies have chosen the high pressure common rail technology line to meet the country's three emission standards. High-pressure common rail technology is mainly monopolized by multinational companies such as Bosch, Delphi and Denso.
However, prior to the implementation of the National III emission standards, domestic companies have achieved some results in the development of diesel engine EFI systems. For example, Chengdu Witt Electronic Controlled Compression Pumps began to support small-volume vehicles. FAW also launched its own high-pressure common-rail diesel engine.
From July 1, 2008, China will implement the three emission standards for heavy-duty vehicles. At that time, domestic light vehicle manufacturers had not yet prepared for the implementation of the National 3 standards because of the increased cost of upgrading light vehicles. The price of a light truck is only a few tens of thousands, and the purchase of a high pressure common rail system requires about 10,000 yuan. Therefore, the three standards for light vehicles under 3.5 tons will be postponed.
Bosch has launched an economical high pressure common rail system with unit prices ranging from RMB 5,000 to RMB 6,000 for diesel engines used in light commercial vehicles with a capacity of under 3.5 tons in the Chinese market. Compared with the existing high pressure common rail system, Bosch's economic high pressure common rail system is very different: some functions are simplified, the electronic control components are reduced, and the fuel injection pump and the nozzle are all different. Therefore, the cost is bound to be much lower.
From the high-pressure common rail system unit price nearly 10,000 yuan to 5,000 yuan, reduced by nearly 50%.
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