Parts industry needs to reshape development model to break foreign monopoly

The auto parts industry is an integral part of the auto industry and provides more than 70% of its profits. It is the foundation for independent innovation in the auto industry. At present, the scale of China's spare parts industry ranks in the forefront of the world. In 2011, sales reached 2 trillion yuan, forming a scale of six major production regions and more than 20,000 companies, but they are large but not strong.

In the domestic market, foreign-funded parts and components companies account for more than 75% of the total market share, and control most of the market share of core components. While China’s domestic-funded parts and components companies are subject to human beings, the state of being scattered, weak, and low is worrying. Specific performance in the following areas:

The supporting relationship between domestic-funded enterprises and the entire vehicle industry is loose. China’s Hyundai Motor Industry started from a joint-venture vehicle. Therefore, foreign-invested companies such as Europe, the United States, Japan, and South Korea formed the component supply chain. For example, the suppliers of US-based cars in China are all foreign-funded enterprises; 88.9% of suppliers of European-style cars in China are foreign-funded enterprises; the proportion of Japanese cars is 88.5%; and the Korean car supply chain is hardly open to Chinese domestic-funded enterprises. Although the development of self-owned brands has driven the development of domestic-funded parts and components companies, 52.8% of the selected suppliers have a foreign investment background. Therefore, it is difficult for domestic-funded parts and components enterprises to form a continuous and stable product connection relationship with domestic vehicle companies, and it is difficult to form the industrial chain relationship between systems, assemblies, accessories, and parts.

Lack of core technologies and weak independent innovation capabilities. At present, China's domestic-funded parts and components companies have little knowledge of core technologies. For example, engine management systems, power matching systems, safety electronic control systems, and fuel injection systems are almost monopolized by multinational corporations, and automatic transmissions are also dominated by a few multinational corporations. Most corporate products are at the low end of the industry value chain. 80% of the company's sales revenue is less than 100 million yuan, and its market share and manufacturing capacity of 90% are concentrated in low-end parts and components. Although a large number of products are exported overseas, they are all products with low added value.

In summary, the continued development of domestic-funded parts and components enterprises will not only result in the loss of huge markets and profits, but will also lead to an increasingly fierce situation in the development of vehicle-dependent foreign-owned parts and components companies.

Right now, China has no longer been able to replicate the development models of the automobile and parts industries in Europe, America, Japan, and South Korea. It can only develop a new road in an open environment and make full use of surviving advantages to develop.

The above-mentioned surviving advantage is the enormous potential of the local market. This is also why international capital is still laying a large role in the distribution of China during the financial crisis. Therefore, it is necessary to reverse the concept that each of China's zero-and-zero enterprises is fighting each other, increase the awareness of coordinated development, and obtain the initiative for the development of the local market as the primary goal, and reshape the mode of industrial development. To this end, it is necessary for the government to actively play a guiding role, combine resource allocation with market mechanisms, and innovate the organizational models and mechanisms for industrial development.

First, give full play to the policy-oriented role and the coordination function of the industrial organization, make a systematic plan for the transformation and upgrading strategy of the auto parts industry, define the development priorities, the priority of technological development, and the direction of industrial integration. Second, we must adjust and improve the current automobile industry policy. From purely vehicle priority to zero emphasis and overall development; from focusing on the breakthrough of key components and key technologies to the construction of a technological innovation chain supporting industrial development. Third, to promote the establishment of collaborative innovation and win-win development between zero and zero. The government should use resource allocation methods to guide enterprises to form industrial supply chains and deploy technological innovation chains around the industrial chain. Fourth, the company plans to rationally plan the product distribution of auto parts companies and industrial parks, guide enterprises with upstream and downstream support to jointly develop core components, and establish a service platform for auto parts technology innovation.

4 Axis CNC Router

Cnc Engraving Machine,Cnc Stone Carving Machine 3D,4 Axis Cnc Router

Jiahe CNC Router Co., Ltd , http://www.carvtek.com