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Analysis of the development of China auto spare parts market

Spare parts are foreign countries
Parts and components are the basis for the development of the automotive industry, as well as the short board for building a powerful country in the automobile industry. China automobile industry association secretary general Dong Yang almost every year in cries. Unfortunately, year after year, the status quo has not changed.
What is the present situation of China's auto parts system? It is understood that, at present, the joint venture parts are controlled by the foreign party, the foreign supplier comes to China, the supplier in the car enterprises to build factories and put into production, the nearest supply. As it is put into production in China, it also belongs to local purchasing, and it will not affect the localization rate of the final model. Then, the joint venture car enterprises can not be vacant, the independent enterprises should always use domestic suppliers? The answer was No. In the past five years, the Great Wall, Chery and BYD have released news of cooperation with famous international component enterprises such as BOSCH and delphi. The most concern car brand qoros, the supplier is Magna Steyr, TRW, BOSCH, Valeo, and other international brands, not a China local spare parts brand.

Independent brands also adopt foreign systems
There is a rule in the automotive industry that the whole car factory is working for the engine factory, and the engine and transmission are the most profitable parts of the vehicle. TOYOTA, GM, Volkswagen, BMW and other auto giants have their own engine technology, in order to reduce the cost of the engine or the joint development, but development must be held jointly by both parties, does not allow others to control. Powerful, such as BOSCH, also only control the 40% core EFI engine market.
Ironically, with the accession to the WTO more than ten years ago, China's own brands have only mastered engine and automatic transmission technology in the last two years, and more of them were assembled before 2012. Analysts believe that the plight of independent brands in recent years, the cause of the funding strand breaks, and the capital chain broken more, in the most beautiful scenery, profits have been made by parts manufacturers. To buy instead of R & D, is the independent brand has been building the mainstream of the supply system of spare parts. Behind a large car prices have a large spare parts business, such as GM and Delphi, Denso and TOYOTA Honda behind it, but Chinese didn't get out of spare parts manufacturers.
China's independent brands have not tried vertical integration. BYD once parts supporting self-sufficiency rate as high as six or seven into the engine, motor, controller, chip, and even car paint, do it yourself. Soon, however, the model was sorely tested. The front line is too long, and a great deal of money and energy have been scattered, and the market has long been lost. It is better to buy it directly than to save it. , like BYD and Chery, is now home to foreign suppliers. In 2013, a large number of columns in the brand new car, a good CVT transmission, for a bunch of Belgium company.

R & D and M & A are the way out for domestic enterprises
Insiders pointed out that, Chery, BYD, the Great Wall from its own R & D, production parts began to large-scale procurement of foreign brands, not without reason. Domestic parts prices lower, but uneven, low yield. Recently, the general manager of BYD sales company general manager Hou Yan, Chery automobile sales company Huang Huaqiong, chairman of the Great Wall, the Wei army also told reporters that the current market competition has developed to the quality competition, independent brands have to provide high-quality products. If only pick up cheap matching, the product grade will decline. Wei Jianjun says.
It is understood that, at present, most of the domestic parts and components enterprises to copy, spin off foreign products, imitation, never mastered its core technology. Few enter the joint venture car enterprises supporting system, but also by the joint venture car enterprises strict control, it is difficult to produce products from the harvest, can only be charged with the role of contemporary factories, do not know how to innovate, but also reluctant to innovate.