New Ideas for the Development of Auto Parts Enterprises in China (I)

In June 2004, the newly promulgated "Automobile Industry Development Policy" put forward important policies such as "encouraging and nurturing a batch of relatively advantageous parts and components enterprises to achieve large-scale production and entering the international auto parts procurement system and actively participating in international competition" and other important policies. Large groups and large-scale development have increasingly become important conditions for future parts and components companies to participate in international competition.

Currently, in the international market, annual sales of US$10 billion represent the basic scale of global suppliers of parts and components. There are now 25 global parts suppliers with sales of over US$7 billion; sales are between 7.5 billion and 2 billion. U.S. dollar component companies can only become regional strategic partners for global suppliers, responsible for the development and production of subsystem components. It is estimated that by 2010, China's parts and components companies will undergo a joint and reorganization, the overall number will decrease by 70%, and eventually 20 to 30 first-tier suppliers, 250 to 350 second-tier suppliers, and 1,250 to 1,500 third-tier suppliers will be formed. . In the face of fierce competition, domestic parts and components companies must become stronger and bigger, become internationally competitive enterprises (groups), become strategic partners for global suppliers in the China region, and in the future international parts procurement system. To occupy a place in China, we must correctly choose our own development strategy.

Comparative Analysis of Auto Parts Enterprises at Home and Abroad

In general, China's auto parts companies are still at a relatively low level, with small scale, low industrial concentration, weak product development capabilities, and the ability to supply systematized, modular, electronic products. Its export products are mainly for the international auto parts maintenance market, and are concentrated on mechanical parts with relatively low technological content. The quality of export products is poor and does not conform to international standards. Due to institutional reasons, a large number of parts factories have a low degree of concentration. A product often has several or even dozens of companies in production, causing the automobile and parts industry to be repeatedly dispersed, small in scale, and of poor quality. At the same time, the parts companies themselves have unreasonable structures and small scales. Although the technological categories are complete, the level of specialization is low. Many small businesses are poorly equipped and technically backward. The quality of products cannot be guaranteed and it is difficult to meet the requirements of the international market. "Scattered, chaotic, and bad" is the best summary of the current status of domestic parts and components companies.

If the classification is to be compared, the first is the difference in sales revenue. The 54 auto parts companies with sales revenue (including supporting and aftermarket) in China's auto parts industry above RMB 200 million in 1998 have a total sales income of only USD 3.4 billion, ranking among the top 100 companies in the world. Comparing sales revenue, there is a big difference.

The second is high-tech content. Compared with the sales of electronic control products, the gap between China's auto parts industry and the world's auto parts industry is even more alarming. Among the top five auto parts companies in China, the products listed in the first category are the front suspension and rear axle products of the sedan; followed by the universal joints, transmission shafts and bearings of the cars; and the third is the manual of the sedan. Transmission; the fourth is the micro-car engine; the fifth is the car dashboard and steering wheel. The technical content of these products are all international standards of the 1980s and do not contain electronic control technology at all.

The products of the world’s 100 largest auto parts companies are new products in the late 1990s, including engine management systems, thermal systems, safety systems, electronically controlled suspensions, electronic harnesses, and electronic components such as sensors and ECUs. , ABS, TCS, etc. At the same time, the technical content of a large number of conventional products produced by these companies, such as interiors, seats, tires, and lamps, also represents advanced levels at the end of the 20th century.

The third is research and development capabilities. There is a huge gap between China's auto parts companies and the top 100 global auto parts companies, and the distance is still widening. Take the implementation of the “PNGV Plan” organized by the United States as an example: The United States has successfully developed a car with a fuel consumption of 3L per 100 km after the European and the Japanese, and has a greener blue than a blue one in terms of space and safety performance; Great achievements have also been made in research and development, and it is currently at a critical state of use. In contrast, in the latest round of imported cars in China, most of their equipment was manufactured in the mid-to-late 1990s, and most of the key components were not domesticated. At present, the engine localization rate is only 25% to 60%; the automatic transmission part is zero; the front and rear axle parts are 20% to 60%; and the air-conditioning part is only 40%.

When automotive electronics, digitization, and automotive design micro-computerization will end the concept of traditional automotive industry technology, China has not yet mastered all the technologies of the traditional automotive industry. This contrast has to be recognized as enormous.

Fourth, production and supply methods. The revolutionary changes have taken place in the production and supply of auto parts products in the world. At the annual meeting of suppliers in 1999, Delphi, Bosch, and Weston presented epoch-making challenges to the traditional model of production and supply. This is also a revolution in the automotive assembly industry. The establishment of modularization and promotion of the “ready-to-install” assembly concept has had a positive impact on improving the operational efficiency of the automotive industry, reducing production costs, and increasing market competitiveness. At present, this method is widely used between foreign auto parts suppliers and automobile manufacturers.

However, although the small-scale modular supply method of China's auto parts industry has begun to be used by some companies, it is only at the initial stage.

Finally, it is the matching relationship between parts and components companies and vehicle manufacturers. In foreign countries, the relationship between automakers and OEM companies is entirely based on the laws of market economy. This depends on the consistency of the two goals, namely, market maximization and profit maximization. Under this premise, as long as the price can be met, technical standards are met, quality is reliable, and services are in place, the cooperation between the two can be concluded.

In China, this relationship is often affected by factors such as subordination and regional division. As a result, each region and major group has its own group of supporting auto parts and components, which makes auto parts companies “scatter, chaos, and poor. "The phenomenon has not yet been greatly improved.