China Auto Parts Industry Development Trend and Countermeasures - Lug Style Butterfly Valve
Development of China's auto parts industry in meaningful, must inferior vehicle, our parts and components industry is the most promising to become a world affected industries. At present, China auto parts industry is in a very critical period, on the one hand, maintain high growth momentum, in the automotive industry to GDP ratio increased gradually; the other hand, the development of China's auto parts industry, faced with multiple pressure and challenges, an urgent need out of the woods.
1, showing five major trends in
First half of 2006, China's auto parts industry seize the strategic opportunities to support independent innovation and international transfer of the automobile industry an opportunity to carry out the necessary strategic adjustments, the promotion of industrial structure, product structure optimization and upgrading and development capability to meet the entire vehicle development needs and market demands, showing five major trends:
(A) the beginning of the current cluster of scale
Auto parts production is the beginning of the cluster effect. With the rapid development of automobile group around the OEM automotive parts industry cluster has also been rapid development. By region, has been basically formed the northeast, Beijing and Tianjin, central, southwest, Yangtze River Delta, Pearl River Delta six parts industry cluster. Auto parts industry cluster, thus enabling more sophisticated division of labor, more professional and easier to achieve scale, to make information more focused, quicker and faster pace of technological innovation, logistics and more easily organized economic efficiency has improved significantly. Auto parts industry cluster and the cluster effect in the future will be faster development. China's auto parts enterprises mainly in Zhejiang, Jiangsu, Shanghai, Hubei, Shandong, Guangdong, Jilin and other regions, including Shanghai, Zhejiang parts enterprises in both areas the output of higher efficiency. In the June 23, 2006 release of "2005 China Auto Parts One Hundred" list, more than 2 billion yuan sales income amounted to 22 enterprises, accounting for 22% of the total number of 100 companies, sales revenues accounted hundred companies the total sales income of 61.44%, of which more than 10 billion yuan sales income of enterprises 4. Hundred companies in 2005 achieved a total sales income of 217.577 billion yuan, an increase of 21 billion yuan, an increase of 10.7%, accounting for more than 4447 auto parts the size of enterprise sales revenue 63%, indicating that the size of auto parts industry effect has been greatly enhance.
(B) to accelerate the pace of integration and restructuring
Learn foreign auto parts industry development experience, restructuring, integration will be China's auto parts industry is one way out. Since 2006, consolidation and reorganization of China's auto parts enterprises and production of socialization, professionalization of rapid development. Through joint re-present, China's auto parts industry, basically out of the past, the kind of "quantity, size small, poor quality" scenario, production levels were significantly increased, and has formed a supply for domestic OEMs matching system. Such as FAW-rich Austrian company, Dongfeng spare parts division and so on, private auto parts enterprises developed rapidly, investment diversification is taking shape. Private enterprises showed significant growth and competitiveness, components product technology, quality, levels greatly improved, and the private economy showed significant growth and competitiveness, not only has become the main supply of aftermarket parts and export of the main , and the formation of a number of internationally competitive auto parts enterprises, such as the Wanxiang Group, Zhejiang, three flowers, Wanfeng Otter.
The face of market competition, and spare parts industry to speed up the pace of industry consolidation, in the spare parts sales and establish sales of the Commonwealth, including e-commerce, including sales network, combined with logistics companies to form large parts sales group. Diesel engine parts diesel engine parts have been built in the Commonwealth of the market price of the diesel engine parts self-discipline, a certain role in promoting market-oriented. It is understood that the State will be in a few years to develop new standards, the assembly class into 2 parts factory 4, others 23 matching plants to the diversion, and then develop labor-intensive parts and components, such as brake discs, friction materials to address the diversion in seeking employment. As for those high-volume, cycling and the technology is too complex a small amount of standard parts, such as the rubber gasket will no longer be emphasized that domestic and imported directly.
(C) the capacity to rapidly enhance the international competitive bidding
First half of 2006, all parts enterprises to overcome the exchange rate changes, and factors such as rising raw materials, and strive to take measures to cost efficiency and actively participate in multinational global parts procurement bidding, bid rate greatly increased.
The first half of the United States in the SAIC-GM EPSILON project has been designated 13 enterprises, many products not only supply to Shanghai GM, GM will also supply other factories around the world. Shanghai Koito the headlights, GKN of the drive shaft, Sanden Behr air-conditioning compressors, Yanfeng Johnson's seat side cover, shot in the suspension springs, etc. Following the realization of a large number of products OEM package, the current entered synchronous development of the ranks, indicating that these companies product development capability and market competitiveness greatly enhanced. The first quarter of 2006, exports of automotive parts and components amounting to 4.623 billion U.S. dollars, up 44.11%; With the ability to enhance the development of automobile parts, OEM parts assembly supporting the export large orders increased significantly.
In March 2006, Chery exported to the U.S. 5000 engines, not only the engine is by far the Chery exported the largest volume of orders, but also their own brand passenger car engine in the international market's largest deal. Following the Shanghai GM CAMI engine OEM quantities exported to Canada, the Shanghai Huizhong the first time this year, GM's 50 billion yuan, chassis systems large orders.
(D) towards high-tech products
High technological content of products and some of their own brands on the market one after another this year, automotive product development as well as vehicle safety, emissions and other requirements of higher technical level of auto parts also increased gradually. In China, due to the introduction of advanced technology and joint ventures with foreign co-operation, a number of high-tech products in volume production. Such as the Shanghai United Electronics Co., Ltd. and Beijing Delphi Wanyuan Engine Management Systems, Bosch and Delphi, respectively, the introduction of technology, production Electronic Fuel Injection System; Shanghai Automotive Brake Systems, the use of technology to produce cars with Bosch ABS; Shijiazhuang Kuraku Company, Jinzhou Hop Cheong Company, Jinzhou Jin-Heng companies producing airbag products; Dongfeng Honda Engine Co., Ltd. produce automatic transmission; Dongfeng Motor Corporation, Shanghai Hino, North China's introduction of diesel engines produced by Cummins, Hino PC ?, and other high-power DEUTZ 1015 Euro ? emission levels of diesel engines and so on.
In 2006 China's automobile electronics exports pick up. Yanfeng Key is the airbag assembly Zouqiao domestic and foreign markets in the first quarter reached 3.6 million U.S. dollars export. Joint electronic sensors, injectors and other electronic products exports this year, a relatively large increase; Yanfeng Visteon Automotive Electronics Co. products continue to maintain a good momentum of exports. In addition, the traffic on the real car horn is also to achieve this year, the export OEM quantities.
(E) Foreign investments continue to enhance
Multinational giants with technology, brand, management, encroachment of China's auto parts market. As the field of auto parts in China lift the restrictions on foreign investment than stocks, "sole" of the spread of multinational auto parts enterprises. In the past six months, Delphi, Mahler, Bosch and other multinational companies in the domestic production base in the newly formed more than 10, and 90% of the above-owned enterprises, in 2006, parts enterprises have been set up in three wholly-owned investment Guoyi R & D center. Recently, Delphi relevant responsible person said that Delphi China currently has eight production bases and a newly established R & D center, which was established early last year and this year the two parts business and a technology center are wholly-owned enterprises, Del Fu will further focus on the development wholly-owned R & D center, the future R & D center developed by the Chinese technology will belong to Delphi. Parts from the engine manufacturer point of view, Mahler was "sole" of the pace of the fastest growing businesses, now MAHLE shares of all enterprises in China have more than 50%, in Nanjing, Chongqing, engine plant has completed its "wholly-owned technology "transformation, the newly established technology center is also a wholly-owned enterprises. The other parts giant Bosch is also expanding its ratio of domestic investment, according to Bosch's plan, in 2005 and 2007, Bosch in China's investment will total 650 million euros to 2007 sales will double.
Second, the status quo and challenges
While China's auto parts industry has made great strides, but the local parts enterprises have not fared well: on the one hand, rising prices of raw materials; the other hand, since 2004 the vehicle price war, so a lot of vehicle enterprises to pass on some cost pressures parts enterprises; In addition, the multinational giant's strong competition in many local parts enterprises has become very difficult to survive.
2005 statistics show that China's spare parts industry, the first time since in 10 years to lower profits.
(1) China's auto parts industry, the basic status quo
1. The basis of poor. In recent years, driven by the rapid development of automobile industry, automotive parts and components of the rapid development of the situation there, but because of a long period of lagging behind, China's automobile parts base is still poor, manifested in: First, economies of scale, not yet fully formed, to meet the the need for rapid development of automobile production exceedingly nervous; 2 is based on electronics and information technology-based high-tech products are also very weak, in addition to audio systems, vehicle-specific IC, high-grade sensors, the microprocessor is basically a blank, had to rely on imports ; Third, aluminum, magnesium, titanium and other light metals and plastic-based composite material is also applied sparingly.
2. Shortage. In parts of China's investment in the planned economy period traditionally never made it onto teams, had to include vehicle projects, so investment statistics incomplete parts, but when compared with foreign-investment is obvious. "75" period began to take, "85", "95" as a priority, but the proportion of investment has always been low.
3. Weak product development. For a long time, China's leading role in product design, automotive parts factory in the vehicle, parts and components plants only production, joint ventures are involved. Supporting product development, suppliers are not right, this is global sourcing trend is not consistent. A number of new specialized parts and components providers are changing this situation. Do not solve this problem, car manufacturers will not be able to develop their own product development capabilities. At present, the development of auto parts is being used by automotive OEMs shift auto parts plant.
4. Low brand awareness. China's own brands in recent years, parts and components in terms of technology, process, quality, market share, have made great progress, but the local component manufacturers with the multinational brands still a big gap between parts: First, scale, technical content, well-known gap between the obvious; second is a small independent brands.
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In addition, from the industry??-Intensive industry. Although China has abundant cheap labor resources, but poor management offset the advantages of low labor costs, China's auto parts industry, the average productivity gap with the international advanced level than the automobile industry, the gap is even bigger. Average annual labor productivity less than 20% of the United States, only Japanese parts companies 1 / 8.
(B) to face the challenges at home and abroad
1. Strong domestic raw materials, parts and components industry, companies began to get involved. A number of major raw materials and manufacturing companies have started their own production of automotive parts and components, using the material cost advantages to compete with their peers, to seize the market. In June 2005, Baosteel announced its entry into the auto parts industry, with wheels, body, powertrain and chassis systems of production as the core, so that Baosteel 2010 to enter the domestic auto parts industry before the 3. It can be expected, Baosteel to get parts and components industry, greater development, but also human capital and management expertise to further accumulation, which in some parts of today's corporations to stay in a certain space.
2. IT giants are beginning to expand into the auto parts industry. In 2005, Lenovo took the lead entering the automotive parts industry, followed by Microsoft, Motorola and other international IT giants have also expressed their willingness to make significant inroads into automotive parts market. In fact, the auto parts industry, the future development trend indeed given the realization of these IT giants "car dream" basis. In the current auto industry, the electronic system can account for a high 70% of the total cost of cars, ordinary cars of the 30% of the total cost. It is predicted that the future world dominance in the automotive industry will be on the development of automotive electronics, intelligent, network-based technologies and applications. The IT giant auto parts company acquired the real goal is to design a declaration of war to the vehicle to launch a unified standard auto parts revolution. If the standardization of electronic components commonly used in different models, then the existing automobile parts business enterprises and the traditional supply relationships will be broken, IT enterprise will control the next generation of automotive electronics aftermarket standard right to speak.
3. Foreign small-business joint collaborative approach will be eating into profits of the domestic parts industry. Before opening up markets abroad, the Chinese parts enterprises, large enterprises and basically dominated the mainstream of business. At present, however overseas Ersan Liu enterprises and even smaller businesses, are prepared in the Chinese market this big "cake" on the bite. Although large parts enterprises with foreign compared to the rival brands, but in technical, technological, etc., as compared with Chinese enterprises still have a strong competitive edge. In addition, when compared with Chinese enterprises, although the cost does not account for a great advantage, but the refined, specialized, and flexible is a common feature of these enterprises. For example, many of them based on traditional methods of joint collaboration, a number of small businesses to sophisticated division of labor and cooperation, to form a "honeycomb" of the organizational structure, effective in achieving maximum efficiency and cost minimization. With the overseas small businesses moving into the Chinese market, will certainly pose a new round of local parts enterprises challenges.
Third, several ways to enhance competitiveness
Bigger and stronger China's auto parts industry to comprehensively enhance their competitiveness, Chinese auto parts enterprises should be how to enhance competitiveness?
(A) efforts to build an international auto parts procurement center
Present, the international automotive industry is facing a new round of transfer, to achieve by the local production and regional production to global production, the formation of a new batch of industrial clusters. According to statistics, multinational corporations before the end of 2007 plans 50 billion U.S. dollars low-cost country sourcing of components, of which 70% of companies targeting the Chinese enterprises, Chinese parts enterprises to take advantage of the foundation has been formed to speed up parts base construction, meet the international OEM and after-sales service market demand; to export spare parts to aftermarket parts from the market-oriented to the market and OEM parts equal emphasis on supporting change. China must adhere to the localized production of parts and components exports the general direction of China's auto parts industry must seize this favorable opportunity, and gradually reduce and get rid of automobile enterprises and foreign enterprises to influence and control, the formation of relatively independent of the industry, out of its own development road.
(B) of independent innovation, to master the core technology
At present, the auto parts enterprises do not increase product quality, a very important reason is that hardware is not kept pace, resulting in poor quality of local parts and components, it is necessary to reverse this passive situation, must be increased. First of all, local parts and components on their own to find a way to raise funds to increase numerical control and modernization of equipment investment, construction of facilities to ensure that the hardware can achieve customer satisfaction requirements. Secondly, we must help the Government and the competent authorities, actively seek policy support, relying on the government to foster enhanced hardware construction. Since 2006, our government in national economic development and guide the direction of strengthening the efforts, such as the National Science Conference in 2006, "two sessions" are a strong independent innovation came in to master the core technology to develop their own brands to the country's economic development strategic level, a series of policies forthcoming, auto parts enterprises should seize the opportunity to ride on the momentum and to improve their own R & D capability, develop their own features and brand to achieve scale and multi-species matching. The development of China's auto parts industry to exploit the comparative advantages, in the unique individual product competitiveness as soon as possible, as soon as possible the formation of multiple segments of small auto parts giant enterprises, speed up access to the world's leading OEM supplier of the pace of establish a sign of China's auto parts industry enterprises.
(C) increasing specialization, the level of the scale
Economies of scale in the automotive industry is a typical industry, as a strong auto parts manufacturers, must meet the industry economies of scale to be able to reduce production costs, increase profit margins and lower prices space, to provide consumers with good products and services . Therefore, in face of market competition, parts and components industry should accelerate the pace of industry mergers and acquisitions, increased specialization, large-scale level. Automobile parts enterprises and enterprises to actively explore business alliances model of development, relying on own-brand automobile parts enterprises enterprises to participate in synchronous development. The domestic parts enterprises should be based on technology, service, costs as the core parts enterprises focus on the formation of an appropriate scale, distinctive professional and low-cost comprehensive competitive strength of developing high-tech, electronics parts and components product development, production and supporting, and actively carry out international edge components with the cooperation of companies, private enterprises can actively participate in parts and components industry restructuring, mergers and reorganization of domestic business development difficult, but the basis of good parts enterprises in the localization process, stand firm heel to seek new development.
(D) integration of resources, improve management, promote the information technology
To carry out overall planning of existing resources to form a rational layout and distinctive features, advanced equipment, operation and efficient platform for scientific and technological innovation. Competition in the target market the product to optimize the eyes focus on industry segments within a local market in order to establish enterprises in the target market's competitive advantage, increase market share in automotive products and establish a modern enterprise system in line with the requirements governance practices and management systems, and effectively improve the quality of economic operation to ensure the realization of sales and efficiency simultaneously increased. The digestion of raw materials prices, lower costs as a long-term task that is firmly, grasp and implement them.
And to enterprise system innovation, management innovation and technological innovation as the driving force, high-tech product design and manufacture of integrated automotive systems and information resources, integrated management system focused on information network construction, based on the information to establish the depth of applications, information resource sharing for the purpose of the progressive with modern advanced management concept, advanced management architecture and advanced management tools to transform business, we should promote the research, production, operation and management of digital and network.
To sum up, China's auto parts industry to fully enhance the industrial competitiveness, promote the automotive parts industry, leaps and bounds. Can no longer rely simply relying on incremental investment-driven, relying on large groups create a closed components manufacturing systems, relying on over-reliance on foreign technology and vehicle business development. To seize the strategic opportunities to support independent innovation and international transfer of the automobile industry an opportunity to carry out the necessary strategic adjustments, the promotion of industrial structure, product structure optimization and upgrading and development capability to meet the vehicle needs of development and market needs. This will be a gradual process of gradual development, supply and demand changes in the relationship at any time influence the process.
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