Foreign companies take over half of the auto parts industry

With China becoming the world's largest automobile production and sales country, the domestic auto parts industry is also growing. However, in the industry, there is a wide-ranging view of “reshaping vehicle light components”, and it is urgent to increase investment in the scale of parts and components in order to improve their technological level and R&D capabilities.

In recent years, China has gradually liberalized the equity ratio of auto parts companies, and more and more multinational auto parts companies have set up wholly-owned enterprises in China. At present, 70% of the world's top 100 auto parts suppliers have come to China for business, and there are more than 1,200 foreign-funded enterprises that manufacture auto parts in China. At the same time, Delphi, Denso, Sumitomo, the United States Dana, France Valeo, Japan Fujitsu Electronics and other parts of the multinational giants competing to expand investment scale in China.

Rapid market growth

Some experts believe that the Chinese auto market will have a rapid growth period of at least 10-20 years. The auto parts service and after-sales service market will be a long-term and stable huge market. According to the information from China Association of Automobile Manufacturers, it is estimated that by 2015 China's auto parts industry can reach 2.5 trillion yuan in output value.

Although the scale of China's spare parts industry has been ranked among the top in the world, the scale of more than 20,000 companies has been formed. However, in the domestic market, almost all major auto parts are monopolized by foreign advanced manufacturers. According to the data from the Ministry of Commerce, the share of foreign-invested companies in the automotive EFI system and engine management system reached 100%. Foreign-invested parts and components companies’ sales revenue in China last year was about 900 billion yuan, accounting for 54% of the Chinese parts and components market.

As the world's top global supplier of automotive technology, systems and components, Denso Matsushita, deputy general manager of Denso (China) Investment Co., Ltd., stated: “Denvision hopes to make efforts in various fields in the Chinese market to achieve development. I believe not only passenger cars, but also huge potential for development in commercial vehicles, motorcycles, and used car markets in China."

The entry of international auto parts enterprises into China has increased the competition in China's auto parts market, and has also brought advanced products and technologies, advanced production methods and management levels, and has driven and promoted the transformation of China's auto parts industry. upgrade. It is understood that in 2012, Denso Corporation relocated and expanded its technology center in Shanghai with an investment scale of 550 million yuan, and its staff expanded to 500 people. It has installed wind tunnels and other equipment, hoping to improve service levels and product competitiveness. .

Some experts said that in the future, China is expected to become the world's auto parts production and manufacturing center.

Foreign companies strive to adapt to local conditions

In the face of high-growth China's spare parts market, multinational companies have accelerated their pace of deployment. As the earliest high-level parts and components company entering China, senior executives of electric equipment companies have repeatedly stated that they must consolidate their business in the Chinese market and strengthen the Japanese, European and American markets. The cooperation of self-owned brand automakers will build strategic partnerships with more Chinese independent brand manufacturers. Panasonic Gongzai also told reporters: "Denvin is strengthening China's technological system, contributing to the development of vehicle manufacturers' technologies, and advancing product development that meets the needs of the Chinese market in line with local conditions."

Recently, the "Society Blue Book for Automobiles" released by the Chinese Academy of Social Sciences believes that in 2012 China officially entered the automobile society, with more than 20 private cars per 100 households. China’s automobile society, dominated by private cars, has become stereotyped. Some experts pointed out that in order to enter the automobile society, we must pay more attention to the automobile environment such as law, energy, environment, transportation civilization, and culture.

This coincides with Denizou's understanding of the Chinese market. "At present, we believe that the demand in the Chinese market is 'car popularization' and 'economic type', so in addition to traditional conventional technologies that have always been valued, we have also actively developed more technologies and products aimed at the Chinese market." Panasonic said "In order to reflect the needs of the Chinese market and automotive manufacturers in product development in a timely manner, through extensive discussions and exchanges of opinions with automakers and people of insight, we will discuss the formulation of market strategies and technological strategies to further clarify the future. Localization plan."

In addition, in cooperation with local Chinese manufacturers, Denso is based on the style of “developing with customers” regardless of the region. In China, it has been advancing the development and upgrading of systems together with customers. "In the future, this basic policy will not change," Matsushita stressed. "On the other hand, fierce market competition will allow us to further increase the pace of research and development, and will also greatly enhance the standardization. The development style of the proposed standard product will become important."

In the face of sporadic haze days, the new energy vehicle was once again emphasized. In the interview, Matsushita's compliment reiterated: “We think it is necessary to carry out new energy business in China and regard the specific plan as an important issue in the future.”

Denso established the hybrid power technology department at the Shanghai Technology Center. It is reported that the Shanghai Technology Center will focus on the development of vehicle power control systems, hybrid/electric vehicle systems, driver assistance systems, teleservice systems, and thermal control systems. . We hope to improve our service level and product competitiveness.

“We will also use technology research and development to help China achieve this goal and emphasize the popularity of energy-saving vehicles in the Chinese market. We will work hard to improve the environment and achieve energy conservation and environmental protection.” Matsushita said that “it is not possible to introduce the latest technology in China.” What is missing is that we will consider the evaluation of the ultra-low fuel consumption, low-emission gasoline/diesel engine management system, the evaluation of the HV/EV energy management system, and the development of the indigenous Chinese system."

Industry needs innovation

Different from the complete vehicle joint venture policy, there is no limit on the number of shares in the auto parts industry. Multinational auto parts companies have brought capital, technology and management for the development of the auto parts industry in China. Due to lack of independent research and development capabilities and core technologies, China’s autonomy Branded parts and components can only use resources, cheap labor to gain market share.

“Domestic parts and components companies have not made significant progress together with the blowout of the Chinese auto market. The key reason is that local auto parts companies do not pay attention to the input of technical forces.” said Dong Jianping, deputy secretary-general of the China Automobile Industry Association. How to achieve technological innovation and breakthrough is a common problem faced by China's own branded parts and components companies.

It is understood that since mid-2011, Denso has cooperated with the China Association of Automobile Manufacturers and launched a lean production education program for parts and components companies in China. It has provided free education support for domestic auto parts companies in lean production, and is nurturing benchmarks. Under the leadership of the enterprise, the purpose of improving the management level of the entire industry can be achieved.

This action itself also strengthens the relationship between Denso and the domestic auto industry organizations and companies, laying the foundation for further implementation of localized R&D and production. "To contribute to the establishment of a sound automobile society in China, and strive to become a company that is needed in the Chinese market." Panasonic said in an interview at the end of the interview.

Some experts said that in the face of fierce market competition, local auto parts enterprises should pay more attention to the digestion and absorption of foreign technology, improve their own survivability, guard against quick success and blindly copying, and strive to cultivate leading enterprises and strengthen technological innovation in competition. In order to survive and greater development.

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