China's auto parts are suffering from exchange rate wars and inflation

Update:05-03-2019
Summary:

In a certain period of time, China's auto parts are suf […]

In a certain period of time, China's auto parts are suffering from exchange rate wars and inflation. To solve these problems, we must not only improve our technical level to increase the added value of products to resist the exchange rate and inflation, but also take a long-term view of the future. , grasp the future trend of auto parts, and be sure of the embarrassment. From the perspective of a certain period of time, there are four major trends in the development of China's auto parts:

1. The international industrial transfer is accelerating, and mergers and acquisitions are active.

In the certain period of time, most domestic auto parts companies have lower sales. Compared with multinational giants with sales of up to 10 billion US dollars, the scale of China's auto parts enterprises is obviously small. Moreover, China's manufacturing exports have always been known for their low prices. In order to effectively reduce production costs, large-scale multinational companies have not only shifted production to large-scale low-cost countries and regions, but also extended their scope to R&D, design and procurement. In the sales and after-sales service, the scale of transfer is getting bigger and bigger, and the level is getting higher and higher.

In 2010, a number of component multinational companies have established factories in China through joint ventures and other means.

For the domestic parts and components enterprises to have a place in the future international market competition, the quickest way is to form a large-scale parts and components enterprise group through mergers and acquisitions. The merger and reorganization of component companies is more urgent than the whole vehicle. If there are no large parts and components enterprises, the cost will not come, the quality will not go up, and the development of the whole industry will be extremely difficult. In the context of the small size, weak strength and insufficient research and development capabilities of domestic parts and components enterprises, if the parts industry wants to develop rapidly, it must speed up mergers and acquisitions and form a scale effect.

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

From the perspective of the development of the auto parts industry in the world's major automobile producing countries, the development of the parts industry cluster is in the same important position as the development of the automobile industry. To become bigger and stronger, it must develop into an industrial cluster. This is the auto parts industry. Strategic choice. Vehicle companies use platform strategies in product development, and systematic development, modular manufacturing, and integrated supply have gradually become the development trend of the auto parts industry. At the same time, the characteristics of the cluster development of the auto parts industry are becoming more and more obvious.

3. Global procurement of auto parts will become a trend, but in the future, China will continue to export and internationalize.

Along 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 characteristics of high quality and low price are unlikely to change in a short period of time. Therefore, auto parts will continue to be dominated by exports and internationalization in the future.

In a certain period of time, international buyers are increasingly rational and practical in China's procurement, through the selection and training of potential core suppliers; increase their own logistics integration; strengthen communication with foreign domestic factories in the country to enhance the latter's enthusiasm for export; Destinations, compared with other emerging markets, determine the location of purchases and other ways to promote the process of Chinese procurement.

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

1) Auto parts is a global industry. It is inevitable for Chinese suppliers to raise the awareness of the pace of international development. Some enterprises that have already tasted the results of international procurement have passed a fairly positive signal;

2) China's parts and components enterprises, especially the parts suppliers in the supporting market, are increasingly cruel in their competitive environment, and internationalization will be one of the main ways to differentiate;

3) After several years of rapid growth, the relevant supporting manufacturers have reached a scale of more than 1 billion, and have a certain international expansion of economic strength;

4) Foreign capital/joint ventures will also increase their export efforts to make China truly a manufacturing center, thus forming a virtuous circle.

4. The development trend of new technology of auto parts.

The development of new technologies for auto parts presents the following major trends: deepening development; increasing generalization and standardization of components; increasing electronic and intelligent components; and lightweighting of complete vehicles and components become the future development trend; Environmental protection technology has become the commanding height of future industrial competition. In the certain period of time, China's auto parts industry still has many shortcomings, such as poor industrial base, unreasonable structure, lack of research and development, and lack of famous brands. These are all common problems. During the 11th Five-Year Plan period, the National Development and Reform Commission took the overall improvement of the competitiveness of the auto parts industry as the main goal of guiding the industry. Now that the 12th Five-Year Plan is coming soon, auto parts companies need to further enhance their core competitiveness.

https://www.nbyuchen.com