In-depth analysis of domestic and foreign market development trends of auto parts products and technologies in China


At present, China’s auto parts and components are suffering from exchange rate warfare and inflation issues. To solve these problems, we must not only raise our own technological level to increase the added value of products to resist the problems of exchange rates and inflation, but also take a long-term perspective and grasp the future. The future trend of auto parts will play a decisive role. From the current perspective, the development of auto parts in China has the following four major trends:

1. International industrial transfer accelerated, and mergers and acquisitions were active.

At present, the sales of most auto parts companies in China are relatively low. Compared with multinational giants with sales of up to ten billion US dollars, the scale of Chinese auto parts companies is obviously small. Moreover, China’s manufacturing exports have always been known for their low prices. In order to effectively reduce production costs, large multinational companies have not only transferred large-scale production and manufacturing links to low-cost countries and regions, but also gradually extended their scope of research and development, design, and procurement. In terms of sales, sales and after-sales services, the scale of transfer is getting bigger and higher and the level is getting higher and higher.

In 2010, a number of multinational parts and components companies have already established plants in China through joint ventures and other channels. The most recent was the strategy of ArvinMeritor of the United States to localize China on November 3rd, 2010. ArvinMeritor plans to use 5 years to increase the proportion of Asia-Pacific's revenue to 10% of the world's total to 1 /3. "In the future, the Asia-Pacific region, especially the Chinese market, and off-road vehicle business will become key areas for the development of ArvinMeritor.

In order for domestic parts and components companies to have a place in the future international market competition, the quickest way is through mergers and reorganizations to form large-scale component enterprise groups. The merger and reorganization of parts and components companies is more urgent than the whole vehicle. If there are no large parts and components companies, the cost will not come and the quality will not go up. The development of the entire industry will be extremely difficult. The domestic parts and components companies are small in scale, weak in strength, and lack of R&D capabilities. Under such circumstances, if the parts and components industry wants to develop rapidly, it must speed up mergers and reorganizations to form economies of scale.

2. Auto parts companies actively implement systematic development, modular manufacturing, and integrated supply, and the auto parts industry cluster development characteristics are obvious.

From the perspective of the development of the auto parts industry in the world's major auto-producing countries, the development of the spare parts industry cluster is in the same important position as the development of the auto industry. To be bigger and stronger, we must develop into an industrial cluster. This is the auto parts industry. Strategic choice. Vehicle companies use platform strategies for product development. Systematic development, modular manufacturing, and integrated supply have gradually become the development trend of the auto parts industry. At the same time, the clustering characteristics of the auto parts industry have become increasingly evident.

3. Global procurement of parts and components will become a trend, but in the future, China will continue to focus on exports and internationalization.

With the changes in the organizational structure of the auto parts industry, more and more automakers will implement global procurement of parts and components. However, China's huge manufacturing industry and the features of high quality and low price are unlikely to change in the short term. Therefore, auto parts and components will continue to focus on exports and internationalization for some time to come.

At present, international buyers are increasingly rational and practical in China's procurement by selecting and cultivating potential core suppliers; increasing their own logistics integration; strengthening communication with foreign-funded factories in China; and increasing the latter's enthusiasm for exports; dispersing procurement destinations, Contrast with other emerging markets to determine the purchase location and other methods to promote the process of China's procurement.

According to analysis, although international buyers are increasingly cautious about Chinese procurement, exports and internationalization will continue to be the main theme of China's local component manufacturers within the next decade. The main reasons are:

1) Auto parts are a global industry, and it is inevitable that Chinese suppliers will increase their awareness of the pace of international development. Some companies that have already begun to taste international procurement achievements have delivered very positive signals.
2) China's spare parts companies, especially suppliers of parts and components in the supporting market, are becoming more and more cruel in their competitive environment, and internationalization will be one of the major outlets for differentiation.
3) After rapid growth over the past few years, a considerable number of supporting manufacturers have reached a scale of more than 1 billion yuan, with a certain degree of international expansion of economic strength;
4) Foreign capital/joint ventures will also increase their export efforts so that China can truly become a manufacturing center and thus form a virtuous circle.

4. The development trend of new technologies for auto parts.

The development of new technologies for automobile parts presents the following major trends: The depth of development continues to deepen; the degree of generalization and standardization of parts and components has increased; the level of parts and electronics has increased; the level of intelligence has increased; the lightweighting of entire vehicles and parts has become a trend for future development; Environmental protection technology will become the commanding height of future industrial competition.

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