Giants pay attention to spare parts Chinese and foreign companies compete in the auto parts market

If fuel is the car's blood, then spare parts are the body's various organs.

With the development of the Chinese automobile industry, parts and components are slowly maturing as various body parts of the car.

From the “restructuring of heavy vehicles and light fittings” to “the development basis of the auto industry”, from the shortage of plans to the supply of goods and goods to the auto parts market, the development of the auto parts industry in China is very proud; from the late 1980s onwards. Since China's accession to the WTO, from the regional and local to the globalization of procurement and the globalization of information, the grim situation of China's automobile parts and accessories industry has also been alarming.

This year is the 50 years of the Chinese automobile industry. The 50-year development has nurtured a large number of localized automobile parts manufacturing companies. As the consensus of the national automobile industry becomes bigger and stronger, it is deeply rooted in people's minds. With the new market planning, local barriers are constantly falling apart, and the Chinese automobile parts and accessories industry is facing from There are no opportunities. Of course, it is more challenging.

Focusing on opportunities and challenges, both Chinese and foreign companies are trying to lay out a piece of content and start fighting to compete in this huge auto aftermarket. Import and export auto parts will become the new favorite

At 10 o'clock on the morning of August 2, the first press conference of the 2003 China (Tianjin) Import and Export Auto Parts Trade Fair was held on the first floor of the Business Information Exchange Center of Tianjin Port Free Trade Zone. The meeting clarified the latest speculations and discussions about the first import and export auto parts meeting. The time for the launch was determined from September 26 to 29.

One of the organizers of the Tianjin Port Free Trade Zone told reporters that the establishment of a supply and demand platform for Chinese and foreign auto parts companies and the opening of a green channel are highlights of the show. It is worth mentioning that the conference will take the import and export trade as the theme and create a precedent for China's auto parts import and export exhibition, so it has attracted the attention of international and domestic well-known auto parts companies.

This trade fair can be said to be a cluster of stars. A related person from the Chamber of Commerce of the China Federation of Industry and Commerce Automobile (Motorcycle) Parts Industry Association stated that this year's show will invite Chinese and foreign auto parts business enterprises to participate in the exhibition. At present, giants of auto parts manufacturers and auto parts purchasers in the United States, Germany, Brazil, South Korea, Japan, Indonesia, Hong Kong, China Taiwan and other countries have confirmed their participation.

In a more detailed plan for recruitment, the reporter saw the following arrangements: Tianjin Toyota Motor Co., Ltd. will launch the "Tianjin Toyota Auto Parts Supporting Explanation Conference" at the exhibition; Motorola Automotive Electronics seeks cooperation; Australia Auto Parts Trading Group Council; Danish auto parts business group purchasing; Brazil Auto Parts (OEM) Association organizes production enterprises to participate in the exhibition; Spain's Illiesar Tianjin Bus Co., Ltd. seeks after-sales service agency supporting companies; Toyota Forklift confirms participation; Toyota Auto Parts Manufacturer from Indonesia will The exhibition sought various cooperation methods in the Tianjin area.

According to reports, famous companies such as Caltex, Caterpillar, 3M, Denso, and German Volkswagen also expressed their intention to participate.

Let's take a look at the participation of domestic spare parts companies: The Tianjin Port Authority will publish the “Information on the procurement of heavy-duty auto parts and transportation vehicle parts” during the exhibition; Tianqi Group organizes the collective participation of its subordinate production enterprises; All-China Federation of Industry and Commerce vehicles (motorcycles) The local chamber of commerce of the accessories industry chamber of commerce is also actively participating in the exhibition, sourcing and seeking further cooperation opportunities; companies such as Fuzhou Otpas, Yizheng Weilong, Zhejiang Yinlun, Wuxi Xinyun, and Shenyang Liaoye have also confirmed their participation.

Taking the exhibition as an opportunity, the National Association of Industry and Commerce Automobile (Motorcycle) Accessories Industry Chamber and the Tianjin Port Free Trade Zone are planning to build the “International Logistics and Trading Center for Tianjin Port Free Trade Zone” and expect to build Tianjin into a never ending “China (Tianjin) Import and Export. Auto Parts Trade Fair."

There is a market for demand, and the information conveyed by the popular exhibition shows that: China's auto parts market is teeming with unlimited business opportunities. Strong foreign investors, local companies with favorable conditions, and local companies are eager to share a share. Market opportunities highlight

This is a market that cannot be ignored. Insiders wrote that by the end of 2002, China’s auto ownership had been close to 20 million vehicles, and the demand for automobile aftermarket parts and components had reached 70 billion yuan, of which about 20% were imported. It is expected that China’s auto output will exceed 4 million this year. Vehicles, of which more than 30% of the parts are purchased from abroad, especially the rapid development of cars and passenger cars, the greater the number of imported accessories.

As a result, global auto parts and multinational companies such as Delphi, Bosch, Denso, Michelin, etc. entered China through joint ventures or sole proprietorships. Zhao Ying, from the Institute of Industrial Economics of the Chinese Academy of Social Sciences, said that auto parts produced by Chinese auto industry companies are accelerating their entry into the global production system of multinational corporations.

"Ford set up a procurement center in Shanghai in April 2002 and is expected to purchase one billion US dollars worth of parts in China this year for the company's markets in Europe and North America. If it goes well, its purchasing volume in China in 2005 will be up to 100 billion U.S. dollars," he said.

In addition, multinational companies such as Toyota, Volkswagen, and General Motors already have dozens of hundreds of auto parts factories in China. In the all-round cooperation between Dongfeng and Nissan, Nissan is committed to integrating auto parts suppliers from Shanghai, Shiyan and Xiangfan into its global procurement system.

“China’s auto parts suppliers are now facing unprecedented market opportunities.” Chen Wenkai, Everjoy’s management consultancy, told reporters: “In addition to the rapid growth of domestic auto production, which strongly stimulates the demand for auto parts, the overseas market is facing China. Demand for automotive parts will also grow strongly."

According to his analysis, compared with the incremental demand arising from the increase in domestic automobile production, the growth of automobile output in overseas markets is flat. The demand for Chinese auto parts belongs to an alternative demand, that is, purchasing products from China instead of those originally required. Products manufactured abroad (domestic).

In analyzing its background, Chen Wenkai believes that overseas markets are also divided into the OEM market and the Aftermarket. The former should be close to 3 times the latter in terms of total quantity. Historically, the vast majority of China’s auto parts exports have been concentrated in foreign aftermarkets, and mainly in countries such as the United States, which have dominated the independent aftermarket, and the supporting markets have been opposed by technology, manufacturing quality, costs, and union opposition. It is difficult to enter for other reasons.

Nowadays, with the lack of global auto demand, there is increasing pressure to reduce costs and competition between auto giants, and the manufacturing level and competitiveness of auto parts companies in China have been continuously improved in the past 10 years, plus China. Other industries, such as electronics, have become one of the global manufacturing bases, and their reputation has risen, making the giants of the automotive industry shift their sights to China. For a time, "SOURCING FROM CHINA" became a hot topic.

General Motors and Ford have been urging their first-tier component suppliers to either invest in China or purchase directly from Chinese companies since 2002. In fact, many vehicle manufacturers, first-tier suppliers, and circulation giants in the aftermarket are all actively formulating strategies and implementation plans for China's procurement. The door to the international matching market is opening up to parts suppliers in China more and more quickly.

Chen Wenkai even predicted that within the next 10 years, China may become one of the global manufacturing bases for a wide variety of automotive components. It is expected that Chinese auto parts will enter the international OEM market from the start of 2004 and will enter a period of high-speed development around 2005.

"Some international auto giants have actively participated in the various international procurement conferences held in China recently, which can be seen as a warm-up activity for them to implement China's procurement strategy. Substantial procurement activities will follow their familiarity with domestic related business and business rules. , step by step to develop in various forms." Chen Wenkai analysis that. What are the advantages of domestic companies?

The foreign spare parts industry will make a big impact on China, and it will surely cause an impact on the domestic companies in China. However, domestic companies can still rely on their own advantages to find a place in this hot and fast-changing market stage, to achieve their own great cause and even dominance.

Speaking of the "2003 AAAA Trade Fair" which took place in Australia in June, Huo Yiguang, Chairman of the Chamber of Commerce of the Automotive and Motorcycle Accessories Industry of the All-China Federation of Industry and Commerce, was deeply impressed. In Australia, HUI Yi-guang found a very important fact: China's auto parts, especially in terms of quality and price are very competitive in the market, but unfortunately there are too few Chinese companies to participate in, only three such as universal.

Lv Zheng, director of the Institute of Industrial Economics at the Chinese Academy of Social Sciences, said that most of the components needed by the domestic automobile manufacturing industry are internally supplied by enterprise groups, and the self-restrained rate is more than 70%. The rate usually only accounts for 30%. To change the status quo of China's parts industry with low engineering and small production volume, it is necessary to adjust the organizational structure of the auto industry. The main task is to fully reorganize the production of auto parts and completely change the current auto manufacturing industry and zero. The integrated structure of the component manufacturing industry has established a new system of specialized matching component manufacturing companies.

According to statistics, the Chinese auto industry has passed 50 years, during which time a large number of local auto parts manufacturing enterprises have been cultivated. The export volume of Chinese auto parts, especially basic parts, rubber and plastic parts and testing equipment, is increasing year by year.

"China's advantage lies in the cheapness of its products, because China has a comparative advantage of cheap labor. China's average wage in manufacturing is equivalent to only 8% in South Korea and 4% in Japan, the United States, and Germany," said Lu Zheng.

Chinese auto parts companies can also make full use of international resources. In 2001, Zhejiang Wanxiang Group, a private enterprise, successfully acquired UAI, a listed company in the United States, and created a precedent for the acquisition of overseas listed companies by township and village enterprises in China, which enabled the Group to acquire overseas market operation capabilities and technological development capabilities. The FAW Automotive Research Institute and the German FEV Company have jointly developed the CA6DE series diesel engine and made new breakthroughs in the Chinese automobile industry diesel engine. China Bluestar Corporation and South Korea APOLLO jointly established a modern automotive plastic parts company, and both sides invested 170 million yuan.

However, we should also see that in the aspect of technology development of auto parts, the Chinese auto industry has considerable development capabilities in some low-value-added products, and many key auto parts and components are still only imitation of foreign products, such as China. The mass production engine of auto parts companies is only equivalent to the international level of the 1990s. The overall level of the auto engine industry is more than 20 years compared with developed countries.

It can be expected that with the continuous expansion of the Chinese auto market and the development of the Chinese auto industry, multinational companies will transfer their production bases to China and transfer more models and more auto parts to Chinese production. China Parts of the automotive industry will enter the global procurement system of multinational corporations more.

“The parts and components industry is a relatively weak link in the Chinese automobile industry, but it is also the most promising part that has global influence.” The industry concluded that.

Small data

OEM, the abbreviation of original equipment manufacturer, "OEM" in the auto parts industry, is often referred to as the designated accessory enterprise of auto parts production. Its main characteristics are its independence and the orientation of product sales.