In 2006, China’s auto production and sales both exceeded the 7 million mark, and the number of car ownership increased year by year. If this rate increases, China’s automobile production and sales volume will reach 8 million in 2007, which is expected to become the world’s second largest automobile producer. As an industry-based auto parts industry, how to face such a huge market for supporting and after-sales services has become a topic of increasing concern.
I. Breakthrough progress in the parts and components industry
The achievements made by the auto parts industry in China since the 10th Five-Year Plan are obvious to all.
1. Rapid increase in total indicators
Auto parts basically meet the needs of the rapid development of automobile production and social maintenance services; basically have the ability to develop and produce Spare Parts for commercial vehicles and low-grade passenger cars, and have the ability to introduce and digest mid-to-high-end passenger car parts. The joint reorganization of parts and components companies, the socialization of production, and the rapid development of specialization; the average annual sales income of vehicle products by auto OEMs during the Tenth Five-year Plan period increased by 28.75%; and the average annual sales revenue of auto parts enterprises The growth rate was 36.82%, which was higher than the average level of the industry. In 2006, the total output value of the parts and components industry reached 520 billion yuan, an increase of 35% year-on-year. The industrial sales value reached 500 billion yuan, and the industry profit rate was 6.1%. The total annual profit reached 30 billion yuan. According to the current industrial level, the total output value of the parts and components industry in 2007 is expected to reach 670 billion yuan, and the sales value will reach 650 billion yuan. The profit rate will be around 6.15%, and the total profit is expected to exceed 35 billion yuan.
2. Restructuring and mergers have achieved initial success
The reorganization and merger of parts and components companies has achieved initial results, and the socialization and specialization of production have been rapidly developed, forming an orderly use of foreign capital, improving the operating environment of private capital, and improving the efficiency of state-owned enterprises. Coordinated development of the new pattern of the industry. The new structure is mainly composed of three main bodies: state-owned assets, private capital, and foreign capital. State-owned enterprises are mainly supporting systems that have been formed in the past. They are mainly based on internal support. They have already begun to try to jump out of the supporting scope of the original enterprise groups and expand new space; private enterprises have rarely had direct matching relationships with vehicles in the past, and are mostly two. Grade 3 and 3 tier suppliers, or compete in the retail market and export market; foreign-funded parts companies are mostly controlled by powerful world-class component suppliers, have high management and management level, have advanced product technologies, and have integrated with multinational companies. The car has the original matching relationship and shows strong competitiveness.
In the supply chain supporting model, there are currently three typical supporting models: Europe and the United States, "the level of division of labor, independent development" model, Japan and South Korea "tower, division of labor" mode and the supporting system formed around the domestic independent brand vehicle .
3. High-tech products and some self-owned brand products have been put on the market one after another
Due to the introduction of technology and joint ventures with foreign advanced companies, some products with higher technological content have been produced in domestic quantities. Such as gasoline electromechanical spray system, ABS for cars, automotive airbags, ECU motherboards and so on. The diesel engine with trucks has achieved remarkable results through joint ventures, technology transfer, and independent development. It has met the requirements of emission regulations and its performance is close to the advanced level of similar products. Engine companies are also significantly stronger and bigger. Some self-owned brand products have also begun to be put on the market, such as Geely's automatic transmissions, Weichai's engines and so on.
4. Investment of multinational auto parts companies increases year by year
With the entry of foreign automotive multinational companies, overseas original spare parts suppliers have also entered in large numbers and established joint ventures or wholly-owned enterprises in China. These multinational companies have a large scale of operations, strong technical strength and rich experience in transnational operations, which greatly increase the production capacity and technical level of domestic component products. Famous foreign parts manufacturers, such as Bosch, ZF, Delphi, TRW, Dana Corporation, Denso, Aisin Seiki, Fujitsu, Alpine Electronics, Valeo, etc., have established several companies in China. Joint ventures and wholly-owned enterprises. These companies are involved in automotive electronics, automotive electronics, car audio, automotive chassis, body parts and other varieties. The auto parts companies currently listed in Fortune 500 are all entering China and establishing joint ventures or wholly-owned enterprises in China.
5. The number of exports has increased rapidly, achieving exports greater than the amount of imports
Exports of parts and components have grown rapidly, increasing by 6.6 times in five years. Products from the aftermarket parts market began to enter the OEM market, began to shift from low value-added products to high value-added products, from the disorderly state exports to an orderly transition, especially some independent brand products began to enter the international procurement system, the technical level of export products also have Greatly improved. From 2004 to 2006, for three consecutive years, China achieved a net export of auto parts products. In the statistics of seven categories of automobile export products in 2006, four major categories of products, including engines, auto parts, accessories and bodywork, automobiles, motorcycle tires, and other automobile-related products, earned US$215.54 billion in foreign exchange, which accounted for the total foreign exchange earned from the export of automobile products. 77%. This change not only reflects the increase in exports of China's spare parts, but also reflects the improvement of China's spare parts localization capability.
6. The initial cluster effect
With the rapid development of the automobile group, the clustering trend of auto parts industry around the main engine plant has also been rapidly developed. Divided by region, the six major components of the Northeast, Beijing-Tianjin, Central China, Southwest, Yangtze River Delta, and Pearl River Delta regions have now been formed. The clustering of auto parts industry can make division of labor more elaborate and more professional, and it is easier to realize large-scale, informatization, and rapid production logistics management, and significantly increase economic efficiency. At present, the main problem of clustering is to prevent simple gatherings and excessively pursuing economies of scale. It is necessary to strengthen the government's management functions, through comprehensive and reasonable planning, to over-realize industrial clusters, and to increase the level and effectiveness of clustering.
7. Significant progress in localization
As early as 1994, the “Automobile Industry Policy†promulgated a policy of localization and implemented a policy linking the localization rate with the preferential import tax rate for differential grades, laying a solid foundation for the localization and development of parts and components, and the localization of Santana. In Shanghai and other parts of the country, a large number of high-level supporting enterprises have been developed. Most new vehicles will meet the requirements of more than 40% of the domestic matching rate at the start; it will be easier for automobile companies, industries, and new cars entering the automotive industry later. The procurement of domestic auto parts, commercial vehicles, and low-end passenger cars can reach a domestic matching rate of more than 90% when it is put into operation, and significant progress has been made in the localization of auto parts.
8. Private enterprises get rapid development
The private enterprises showed obvious growth and competitiveness; the introduction and absorption of technology led to a significant increase in the level of technology and quality of auto parts products; represented by Zhejiang and Jiangsu, many parts and components companies have completed the conversion of privatization. Private enterprises have become one of the main parts of China's spare parts industry. The private economy has shown strong growth and competitiveness. It has not only become the main force for the supply of spare parts for the aftermarket, but also is the main exporter. It is also creating a number of internationally competitive auto parts export companies represented by Wanxiang.
Second, the parts industry is facing problems
Driven by the rapid development of the automotive industry, in recent years, there has been rapid development of auto parts, but it should also be noted that China's auto parts in the global supply chain status is still very fragile, while numerous opportunities for development at the same time, zero The lagging problem of component development has become increasingly prominent:
1. Unreasonable industrial structure
The organizational structure is irrational. At present, China's auto parts enterprises are still at a relatively low level, tens of thousands of auto parts companies are located throughout the country, but few actually meet the requirements of scale; China's auto parts companies do not form a division of labor according to specialization, hierarchical Reasonably matched industrial structure, local, departmental, and enterprise self-contained systems and scattered investment, there is no large-scale backbone enterprise with strong competitiveness, and it is difficult to enter a lucrative high-end market. Due to the disperse forces, the overall advantages are difficult to manifest, resulting in less product development investment, backward means, and less data accumulation, and can not form a strong development capability, and it is difficult to meet the needs of foreign large-scale procurement.
2. Weak self-development ability, lack of brand-name products
Although China has basically formed a complete system for domestic auto parts, auto parts companies have similar products, small scale, low risk resistance, low technological content, lack of sustainable development capability, and lack of key components and key components of cars. The core technology of the component. The general lack of independent development capabilities of enterprises, the vast majority of corporate R & D investment currently accounts for only about 1.4% of sales revenue, far lower than the average level of multinational companies 5%. The shortage of research and development funds directly leads to the backwardness of R&D facilities and a serious shortage of talents, resulting in weak research and development capabilities and the inability to develop new competitive products in a timely manner. The lack of social awareness of self-owned brands has caused a lack of brand-name products. The lack of independent development capabilities and the lack of competitiveness of self-owned brand products have severely restricted the development of auto parts industry and the improvement of international competitiveness.
3. Small scale and low degree of specialization
At present, there are tens of thousands of auto parts enterprises in China, but few to achieve economic scale, the proportion of large-scale enterprises is less than 1%, the proportion of large and medium-sized enterprises is less than 15%, and the parts companies are generally weak, small and scattered. No fundamental improvement has been made. Localities, departments, and enterprises are self-contained, and they are eager for quick success. They cannot make prudent investment from a strategic point of view. Therefore, there is a serious problem of assimilation. In this way, it is difficult to enter the lucrative high-end market. Due to the decentralization of power, the overall advantages are difficult to manifest. Most companies do not enter the complete vehicle market, but only a single supplier of social maintenance service accessories.
4. Obvious tendency of marginalization of Chinese-funded parts and components enterprises
There is a prominent problem in the current auto parts industry, that is, the tendency of foreign investment holding and sole proprietorship is increasingly obvious. As Europe and the United States, Japan and South Korea multinational parts companies have entered China with the vehicle, their advanced management, advanced technology, high product level, continued the original matching relationship, and the use of domestic cheap labor, so that from any perspective, it occupies significant The competitive advantage. Among the entire vehicle joint ventures, the right to speak in terms of supporting procurement in China is relatively small, especially in the procurement of parts and components, often controlled by foreign parties, making it difficult for Chinese-owned parts and components manufacturers to enter the complete vehicle market. Foreign parties strictly control technology spillovers, making Chinese-funded parts and components companies' marginalization in investment, technology, and markets obvious.
5. Aftermarket service market is not standardized
At present, most parts and components companies have not established a complete service network; corporate intellectual property and patent protection awareness is not strong; counterfeit and inferior parts and components have been prohibited for many times; counterfeit and infringement phenomena have occurred from time to time; they have not yet formed a unified, orderly, normative Aftermarket auto parts service market. At the same time, there are still problems in all aspects such as resource allocation and corporate management strategy development.
6. Product standardization, serialization and generalization are low
The brand awareness of the company is poor and the degree of product standardization is low. Due to the fact that China's auto vehicles, especially passenger cars, are mainly from different countries and different companies, the products adopt different standards and series, which brings greater standardization, serialization, and generalization of auto parts products. Difficulty has severely restricted the further development of the parts and components industry.
7. Cost control pressure
The development environment of China's parts and components is facing upward and downward cost pressures. In particular, the cost control of parts and components is still under pressure and the profit margin is becoming increasingly narrow. Facing the localization strategy of Delphi, Visteon and Denso, the world's leading parts suppliers, and the direct involvement of the domestic steel industry in the auto parts supply chain, parts and components companies are facing more fierce competition and the parts and components industry is faced with a situation of reshuffling.
8. Export structure "three low and one high"
Although China's auto parts exports have shown encouraging growth, the export structure is irrational. Excessively relying on the export of material-intensive and labor-intensive products, it appears to be “three lows and one highâ€, that is, products with low added value, low technological content, low price, and high energy consumption. The export efficiency is poor and the competitiveness is not strong. They are warring and vicious competition. Moreover, due to the low export-oriented enterprises and unbalanced development, the vast majority of parts and components that have been exported have not yet reached the multinational procurement system and foreign mainstream market, and the proportion of OEMs in the market is low. In addition, the quality of Chinese automotive export products is still not too rigid. In particular, the service system is still incomplete. There has been no breakthrough in independent intellectual property rights or brand image so far. It is difficult to break through foreign technical barriers in terms of performance and environmental protection. China's export enterprises still do not fully understand the operating rules of the international market, especially the policies, regulations, and legal and policy environment of the destination countries, making auto parts exports face bottlenecks. The continuous appreciation of the renminbi has also affected the export of auto parts.
The following sets of data can clearly show the gap between domestic parts companies and international parts giants. The income from sales of auto parts companies entering the world’s top 500 companies was: Siemens (21st place) 91.49 billion U.S. dollars; Bosch (83rd place) 59.7 billion U.S. dollars; Japan Denso (rank 203th place) 26.06 billion U.S. dollars; Michelin (rank 294th) US$20.14 billion; Goodyear (rank 330) US$18.3 billion. The only company that sells domestic sales revenue is only RMB 10 billion, and there are only 4 parts and components companies with sales revenue of RMB 5 billion to 10 billion RMB. By contrast, the gap is clear.
Third, the development trend of parts and components industry
If China's auto parts industry wants to make further development, it must be included in the development track of the world's auto parts industry and conform to the development trend of the auto parts industry in the world.
1. Globalization
Economic globalization is based on the rapid development of science and technology as a driving force, taking informational network services as a platform, and taking the global operations of transnational corporations as a carrier to conduct a global industrial restructuring. Resources are allocated to the world by relying solely on internal resources of one country. Multinational companies use global resources to optimize investment, development, production, procurement, and sales to meet the needs of different regions in different environments and market preferences, increase their competitiveness, and seek competitive advantages. Globalization of parts and components involves procurement, production, R&D, sales, and service, and many other aspects, including the globalization of parts procurement, outsourcing of production, globalization of cooperative research and development, and networking of after-sales services.
2. Specialization and scale
The globalization of the economy has had a huge impact on the development of the parts and components industry. As the structural relationship between the vehicle and the parts and components companies is changing, the parts industry has undergone two very important changes: the regionalization of parts and components has changed to a globalisation. While the total number of parts and components companies has drastically decreased, more and more professional and globalized group companies have moved forward; labor-intensive industries have shifted to low-cost countries and regions, and have formed hierarchical supply relationships with large multinational companies. The consequence is the reconfiguration of the global resources of the parts and components industry and the expansion of the scope of global procurement. This has greatly increased the economies of scale of the parts and components industry, reduced costs, and improved the technological level and new product development capabilities of parts and components companies.
3. Technological advancement
The world’s major auto parts manufacturers have applied high-tech such as aerospace, aviation, electronics, and information to auto parts and assemblies to make safe, energy-saving and environmentally-friendly technologies widely applicable. The continuous improvement of economy, reliability and comfort has accelerated the development of automotive automation, intelligence, electronics and information technology. In particular, high-tech represented by electronic information technology is not only widely used in auto parts products, but also extends to design, trial production, production, testing, and after-sales service.
4. Lean
The requirements of lean production, on-time delivery, zero inventory, and timely service make the parts suppliers take full responsibility for product design and development, manufacturing inspection, quality assurance, timely delivery, and market services, and require parts and components companies to Accurate market positioning, systematic design, modular supply, and all aspects must be lean to improve the competitiveness of enterprises.
5. Localization
Due to the huge potential and low cost of emerging markets, multinational companies are actively implementing a localization strategy while implementing the globalization strategy. They use local resources to produce local models and component products suitable for local consumers while providing local products. Marketing and financial services form a localized competitiveness to achieve the goals of being close to local customers and markets.
6. Form partnership with vehicle companies
Looking at the development of the automotive industry in developed countries, the strategy of forming a strategic partnership between Japanese automakers and parts suppliers is worth learning from. Some auto parts enterprises in China should carefully examine themselves from the point of view of development strategy, seize strategic development opportunities, and take the initiative to form partnerships with vehicle companies. As an entire vehicle company, they should change their business philosophy and be positive. Adjust the relationship with the parts companies. Only by forming a synergy can the market's competitiveness be enhanced.
IV. Development Targets and Strategic Measures of Parts and Components Industry
The “Eleventh Five-Year Plan†formulated the goal of rapid, healthy and sustainable development of China's auto parts industry, and set the direction for its development.
1. Overall goal
By 2010, we will form a specialized and large-scale auto parts supporting system for both domestic and international markets, with distinct and stable levels, and provide strong support for the automotive industry to become a pillar industry of the national economy, and to build China into a world component. The manufacturing base lays a solid foundation.
By 2010, the total output value of auto parts will reach 1.3 trillion yuan, of which the supporting output value of the entire vehicle will be 730 billion yuan, the output value of social maintenance parts will be 170 billion yuan, and the export value will be 400 billion yuan (500 billion US dollars). The average annual export increase is 27.5%. The proportion of parts and components that strive to enter the international market is about 30%, and the proportion of technical and capital-intensive products to be exported has increased significantly, and a number of parts and components export bases have been established.
By 2010, we will form a number of parts suppliers with independent development capabilities, capable of developing in tandem with the entire vehicle, and achieving systematized design, modular supply, and international competitiveness. A complete set of parts and components with clear, stable, professional, scale, and good returns.
By 2010, a group of key spare parts development centers will be initially formed to form key component development capabilities that are synchronized with the development of complete vehicles; strong key enterprise parts companies will basically develop product development capabilities; and auto parts industry will strive to develop jointly developed domestic cars. The new product bears more than 20% of development tasks, and assumes 30%-40% of the development tasks for domestic automotive products developed primarily by me.
2. Strategic measures
First, relying on the development of the automobile industry, we will vigorously upgrade the auto parts companies' ability of independent innovation, make use of domestic and foreign resources, establish a complete support system for the auto parts industry, and increase the international competitiveness of the auto parts industry. Automobile manufacturers with independent intellectual property rights vehicle products should establish long-term and stable supporting supply relationships with local parts and components companies, allowing them to participate in the synchronous development of complete vehicles.
Secondly, in accordance with the development trend of systematic design and modular supply of international auto parts, a long-term strategic partnership between parts and components companies and vehicle manufacturers will be established. Taking commercial vehicles and economical passenger vehicles as breakthroughs, we actively participate in product research and development of vehicle companies, continuously improve the level of research and development of parts and components, and gradually establish and improve the parts production system and product standard system to form system components and modules for automotive parts. Supporting capabilities.
Third, encourage auto parts companies to adopt multiple ways to “go global†and implement “transnational operationsâ€. By taking advantage of domestic comparative advantages and actively participating in the international division of labor, it has actively entered the global procurement system while exploring domestic and foreign markets. Global procurement will have a major impact on China's parts and components: It will help China's parts and components to expand exports, increase its visibility and market share in the international market; It will help establish a product quality certification system that meets international standards; It is beneficial to the domestic spare parts industry resources Integration, the formation of a group of large-scale parts companies with international competitiveness. This is a good opportunity for development.
Fourth, in order to better participate in international competition and integrate into the world, parts and components companies must quickly change the conditions of “weakness, smallness, and dispersal†and poor scale effect, and accelerate the pace of industrial mergers and reorganizations. To guide and promote the adjustment of auto parts and components and the optimization and upgrading of product structure, and to enhance the independent innovation capability of parts and components companies, and to form a specialized and large-scale component supporting system that is oriented towards both domestic and international markets, with distinct and stable levels. The parts and components companies must assess the situation, comply with the trend of industrial development, and consciously and actively carry out various forms of cooperation and cooperation to increase the level of specialization and scale.
Fifth, some key enterprises implement sustainable development strategies, pay attention to the development and application of high-tech products and new materials, and produce products with international competitiveness. With high technical content and relatively complex production processes, the company has certain localization-based key assemblies and system components and products, and encourages companies to quickly realize synchronized development, modularization, and systematic supply with complete vehicle companies, and actively create their own brands. Product development space. For high-tech products that do not yet have international competitiveness but are in line with the direction of industrial development, enterprises should absorb, integrate and innovate through active introduction of technology and joint research and development, and form their own advantages as soon as possible.
3. Need to grasp the key
The first is to strive to become an international auto parts procurement center. At present, the international community is facing a new round of shifting the automobile industry, realizing global production from local and regional production, and forming a new batch of automobile industry clusters. China, Eastern Europe, Southeast Asia and other regions have become regions with obvious characteristics of clustering of the automotive industry. According to relevant statistics, by 2010, the total trade volume of world automotive products is expected to reach US$1.2 trillion. Multinational companies plan to purchase US$50 billion of parts and components in low-cost countries by the end of 2007, 70% of which are aimed at Chinese companies. China's auto parts industry must seize opportunities, make use of the established foundations, make use of comparative advantages, speed up the formation of a number of powerful parts and components companies and brand-name products, accelerate the construction of parts industry bases, and meet the needs of international OEM and after-sales service markets. .
Second, enterprises must strive to improve their research and development capabilities, form their own characteristics, achieve scale operations, support multiple varieties, and develop two markets. In particular, it is necessary to closely cooperate with the entire vehicle company's brand building strategy, and through joint cooperation, improve competitiveness, and gradually create an A-level image of “cost, quality, and high-tech†for auto parts products in China.
Third, in the face of market competition, the parts and components industry must accelerate the pace of industrial mergers and restructuring. During the “10th Five-Year Plan†period, mergers and acquisitions of vehicle companies provide conditions and beneficial lessons for component companies to implement industry integration, optimization and upgrading. Parts and components companies must assess the situation, comply with the trend of industrial development, and consciously and actively carry out various forms. Cooperation and cooperation to increase the level of specialization and scale.
The fourth is to actively explore the development model of establishing a corporate alliance among parts and components companies and vehicle companies, and strengthen communication, information sharing, and simultaneous development. Parts companies and vehicle companies must become overly dependent on each other to support and rely on each other for mutual benefit and win-win.
The fifth is to strengthen economic and technical cooperation with foreign companies, promote export companies to build public R&D platforms, and cultivate China's auto parts exports. Exploiting the international market requires the accumulation of a lot of foreign sales experience. This process cannot be completed in one year or two years. When the technology, quality, and service are not fully grasped, do not rush to attack, so as to avoid losses. China's auto parts export enterprises should familiarize themselves with the operating rules of the international market as soon as possible, not only to fully understand the legal and policy environment of other countries, but also to patiently adapt to the tedious procedures that may be encountered.
Sixth, the new round of worldwide competition is increasingly manifested in the competition for talents with innovative capabilities. With the strengthening of external cooperation in recent years, various types of professionals in parts and components companies are becoming increasingly in short supply, and it is extremely imminent to deploy professional personnel of various types for foreign-related management. From an industry point of view, attracting talent, in addition to incentive mechanisms and talent management, also has an innovation problem of discovering talents and cultivating talents. This requires the government, industry, and enterprises to work together. The key is to take stronger measures to implement.
At present, China's auto parts industry is in a new round of peak development. The sustained and stable development of China's economy, the continuous prosperity of the auto market, the favor of international buyers for Chinese auto parts and components, and the development of national 11th five-year auto development program to fully enhance the competitiveness of auto parts industry, and the development of auto parts in China Bring great opportunities. During the "11th Five-Year Plan" period, it is not only the critical period for the survival of the fittest, but also the actual period for the auto parts companies to achieve a rapid development. Let us follow the objectives set in the “Eleventh Five-Year Plan†development plan for parts and components, strengthen industry exchanges, work hard to manage the company, integrate the world, and win-win cooperation, to create a competitive and harmonious development of the Chinese auto parts industry. situation!
Shandong Shanglong Economic and Trade Corporation Ltd , http://www.chtippertruck.com