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Although China's automobile production and sales volume declined slightly in the previous year and last year, it did not affect China’s status as the world's largest automobile country. In general, it still showed a trend of slow growth. It is expected that in 2013 China’s automobile production and sales volume will exceed 20 million vehicles. The overall market of China's entire vehicle has continued to improve, and multinational auto parts companies have again set off a new wave of investment in these years and have accelerated their investment and distribution in the Chinese market. There are many giants such as ZF, BASF, Bosch, Delphi, Denso, etc. Their strategy of “establishing R&D centers in China and acquiring a basic and geotechnical market†has enabled them to penetrate the automotive industry in China more and more, and their influence has also grown. The industry’s “clouds have become parts and componentsâ€, so Going on, China’s dream of becoming a strong country will be a dream.
Weak local components companies
At present, there are more than 5,000 non-state-owned auto parts companies with sales revenues of more than 5 million yuan. From the perspective of the number of companies, it seems that few or a dozen foreign brands are nothing. However, more than 80% of the 5,000 domestic companies have annual sales of less than 100 million yuan, and even if they exceed 100 million yuan, there are only 130 companies. This shows that multinational brands that do not dominate in quantity hold China’s parts and components industry. Most of the market share.
In addition, in this huge number of 5,000 local parts and components companies, nearly 70% are faced with the pressure or dilemma of high production costs, low overall efficiency, and uneven product quality. In terms of technical patents, there are data showing that domestic invention patents are few, and core technologies have not been mastered. This leads to the fact that as far as safety, environmental protection and other high-tech parts markets, such as EFI, high-pressure common rail, and automotive electronics, are basically controlled by foreign-funded parts and components companies.
From this point of view, China's 5,000 auto parts companies should not be able to use "big" to describe, perhaps "more complex" is more suitable. The advantage in quantity is not an advantage. In terms of multinational parts brands, China's auto parts companies are still too weak. Not only in front of multinational brands. In the face of the auto brands that are being quickly upgraded and upgraded, China's spare parts companies have not kept pace with their upgrades.
Build its own brand to help the development of its own brand
Chinese auto parts companies still have their own understanding of their own strengths. At a forum in Shenyang, the managing director of Yang Huaijing from Shanghai International Auto Parts & Purchasing Center Co., Ltd. said: “China’s auto parts industry has not yet had one or several A company or brand with strong influence.†Thus, building a strong independent brand in China has become an urgent task for the industry. So how do we build such a single or a large number of "own brands"?
At the Auto Parts Development China Auto Parts Development Forum, Wang Peiyong, “Guizhou Guihang Auto Parts Co., Ltd. Yonghong Radiator Co., Ltd.†was selected as the 8th auto parts industry’s top ten “Top Ten Brandsâ€. The general manager expressed his point of view. As a company that had been making accessories for FAW-Volkswagen for a long time before, it had some experience in this area. On the forum, Wang Peiyong elaborated on two aspects. He said: “First, we must have technology R&D hardware equipment no less than foreign and Sino-foreign joint ventures. Second, we must have our own accumulated R&D software capabilities. Combining hard and soft technologies to intensively cultivate our industry, improve rapid, high-quality research and development capabilities, and adapt to the requirements of the OEMs for our development."
It can be seen from this that improving the level of corporate R&D and forming a guaranteed technology R&D system is a top priority in building an auto parts auto brand. In addition, Wang Peiyong also stated that local companies must form a large industrial cluster and form a brand cluster with maximum influence to counter multinational brands.
Conclusion: Under the stimulation of China's entire vehicle procurement policy, China's entire vehicle manufacturing industry has created a wave of “own brandsâ€. However, in the "Industrial Blue Book 2013" released by the Institute of Economics of the Chinese Academy of Social Sciences, the profit of self-owned brands is only 5%. Among the other 95% of profit occupiers, there are multinational auto parts brands. How to increase autonomy? Brand profit, to achieve the dream of a strong Chinese national auto, the rise of local parts and components brands should be seized.
China Auto Powers Dreams Need to Create Its own Parts Brand