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The key to making the auto industry bigger and stronger depends on parts

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  • Time of issue:2021-12-31
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The key to making the auto industry bigger and stronger depends on parts

(Summary description)Conclusion: Revitalizing China's physical manufacturing automobile industry is the key, and conquering core components is the key to the automobile industry. Only by conquering core components can the automotive industry form a perfect "closed loop." The time has come for China's auto industry to change from "hollow" to "solid".

  • Categories:Company news
  • Author:
  • Origin:
  • Time of issue:2021-12-31
  • Views:0
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If the whole vehicle is compared to the framework of China's automobile industry, the core components are the bones and muscles. "The key to making the auto industry bigger and stronger depends on parts!" The current market share of vehicle-owned brands is about 40%, which is not low, but most of the core parts are controlled by foreign parties. Is such independent achievements also discounted?

At present, the annual production and sales of China's auto market is close to 25 million vehicles, which provides a development opportunity for native parts and components companies. In the fierce market competition, automakers, dealers, and parts suppliers have formed a complete chain. Undoubtedly, cooperation with parts and components companies that produce cost-effective products will undoubtedly Bringing a competitive advantage to OEMs requires independent core component companies to become stronger as soon as possible. The world’s leading parts and components companies, especially the Fortune 500, have high prices and high profits, which give independent parts and components companies a "gap" for development. It is not impossible for us to win with high cost performance. At present, some types of parts and components in China The quality is comparable to that of the "big names", but the price is significantly lower than the other. In recent years, the author has interviewed dozens of manufacturers of auto lamps, fuel tanks, and hoses of independent brands. I have personally felt the entire automotive industry chain. Chinese forces are playing a huge role. They are organically "linked" through macro strategies. To promote overall progress, it will not be too long for China's autos to become truly powerful. At the same time, they can more effectively pull the entire national economy and drive related industries. In addition, in the author's opinion, certain important raw material production areas should also be included in the category of core components.

It is reported that a certain company has almost monopolized the supply of gasoline engines for all self-owned brands of cars that cannot produce its own engines; certain two companies not only control the global heavy-duty transmission R&D and sales, but also almost monopolize the Chinese heavy-duty transmission market; a certain company is a global The largest automatic transmission manufacturer and the world's fifth-largest auto parts company, its Chinese business covers all corners of the country...Strengthening and expanding China's auto industry, and revitalizing core parts and components have a long way to go. It really requires an overall development strategy. Upstream and downstream, the automotive industry has an extended industrial chain. At the most critical link in this chain, China’s own brand components must not be “absent”. It is best to form a large, globally competitive group, so that China can be said to be China. The auto industry is strong. This is the ultimate goal of the core components strategy. First of all, Chinese parts and components companies should be self-reliant, based on the long-term, dedicated, willing to invest, pay attention to talents, scientific management, technological progress... In short, the basic tasks must be firm; secondly, automakers must consciously support independent brand parts Enterprises, in fact, this is not a simple support relationship but a win-win situation. The latter has developed and grown, and the former can reduce costs and become more competitive in the market. Furthermore, relevant departments and institutions, including the media, should encourage, Support automakers, including automakers of joint venture brands, to choose their own parts and components. The author's survey found that there are joint venture brands that not only do not choose self-owned brand components but suppress them. This is a worrying phenomenon. How much power does China have in joint ventures? China should stand up and speak.

The component strategy must be a national-level industry, otherwise it cannot be implemented; there must be quantitative indicators that cannot be fast. The city of Rome is not built in a day and cannot be missed. As long as it is continuously saturated, there will be a time of "qualitative change". There is also a tactical aspect that might as well take one by one. Localization is right, but localization is only the first step. If the first step is right, there are second and third steps. Just like a complete vehicle, China’s core auto parts must have their own brands. OEMs should be encouraged to participate in parts and components companies, and component companies should be encouraged to participate in OEMs, so as to work closely together to form a community that goes hand in hand. Of course, the method of cooperation should be analyzed in detail. This strategy should not be "hardened", and should give China's independent auto parts companies enterprising vitality and room for implementation.

Calling for the core component strategy of the auto industry is not calling for monopoly, but for consciously making itself bigger and stronger on the basis of fair competition. Whether it’s the whole vehicle or its spare parts, we should support those strong and profitable companies to give them charcoal and icing on the cake. We should not implement the “poverty alleviation plan” and devote manpower and material resources to the “unable to help Adou”. . Good steel is used on the blade!

Conclusion: Revitalizing China's physical manufacturing automobile industry is the key, and conquering core components is the key to the automobile industry. Only by conquering core components can the automotive industry form a perfect "closed loop." The time has come for China's auto industry to change from "hollow" to "solid".

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