Foreign capital has taken over half of China's auto parts market

As China becomes the world's largest automobile production and sales country, the domestic auto parts industry is also growing. However, there is a wide-ranging view of “reforming vehicle light parts” in the industry, and it is urgent to increase the investment in the scale of parts to enhance its technological level and research and development capabilities.

In recent years, China has gradually liberalized the share ratio of auto parts companies, and more and more multinational auto parts companies set up wholly-owned enterprises in China. At present, 70% of the top 100 auto parts suppliers in the world have come to China to conduct business, and more than 1,200 foreign companies are engaged in auto parts production in mainland China. At the same time, Delphi, Denso, Sumitomo, American Dana, French Valeo, Japan's Fujitsu Electronics and other parts of the multinational giants compete to expand investment scale in China.

Rapid market Growth

Some experts believe that the Chinese auto market has at least 10-20 years of rapid growth, and the auto parts service and after-sales service market will be a long-term, stable and huge market. According to the China Association of Automobile Manufacturers, it is estimated that by 2015, the scale of China's auto parts industry will reach 2.5 trillion yuan.

Although China's parts and components industry has already taken the lead in the world, it has formed a scale of more than 20,000 enterprises. However, in the domestic market, almost all of the major auto parts are monopolized by foreign advanced manufacturers. According to the data of the Ministry of Commerce, the share of foreign-funded enterprises in the automotive EFI system and engine management system has reached 100%. The sales revenue of foreign-owned component companies in China last year was about 900 billion yuan, accounting for 54% of the Chinese parts market.

As a global supplier of the world's top automotive technologies, systems and components, Panasonic Matsushita, deputy general manager of Denso (China) Investment Co., Ltd. said: "Electrical equipment hopes to make efforts in all areas of the Chinese market and develop. We I believe that not only passenger cars, but also in China's commercial vehicles, motorcycles, and used car markets have great potential for development."

The entry of international auto parts enterprises into China has intensified the competition in China's auto parts market, and also brought advanced products and technologies, advanced production methods and management levels, and promoted and promoted the transformation of China's auto parts industry. upgrade. It is understood that Denso Corporation has relocated and expanded its technology center in Shanghai in 2012. The investment scale reached 550 million yuan, the number of employees expanded to 500, and wind tunnels and other equipment were set up. It is hoped that the service level and product competitiveness will be improved. .

Some experts said that China is expected to become the world's auto parts production and manufacturing center in the future.

Foreign companies are making efforts to adapt to local conditions

In the face of the fast-growing Chinese parts market, multinational companies have accelerated their pace of development. As the first high-level component companies in China, the electronics company has repeatedly stated that it wants to consolidate its business in the Chinese market and strengthen the US, Europe and China outside the Japanese market. The cooperation of independent brand auto manufacturers will build strategic partnerships with more Chinese independent brand manufacturers. Matsushita said that the company is strengthening China's technology system and contributing to the development of technology for vehicle manufacturers, and promoting product development in line with the Chinese market.

Recently, the "Blue Book of Automotive Society" issued by the Chinese Academy of Social Sciences believes that in 2012 China officially entered the automobile society, with more than 20 private cars per 100 households. China’s car society, which is dominated by private cars, has been finalized. Some experts pointed out that entering the automobile society must pay more attention to the automobile environment such as law, energy, environment, transportation civilization and culture.

This coincides with Denso's understanding of the Chinese market. “At present, we believe that the demand in the Chinese market is 'automobile' and 'economical', so in addition to the traditional conventional technology that we have always attached importance to, we have also actively developed more technologies and products for the Chinese market.” Matsushita said "In order to reflect the needs of the Chinese market and automobile manufacturers in product development in a timely manner, through extensive discussions with car manufacturers and people of insight, exchange of opinions, and explore the formulation of market strategies and technology strategies to further clarify the future. Localization plan."

In addition, in cooperation with local Chinese manufacturers, Denso is based on the style of “developing with customers” in any region, and has been promoting the development and upgrading of systems with customers in China. "In the future, this basic policy will not change." Matsushita said. "On the other hand, fierce market competition allows us to further increase the speed of research and development, and will greatly enhance the standardization. The development style of the proposed standard products will become important."

In the face of successive smog weather, new energy vehicles were once again stressed. In the interview, Matsushita’s rules again emphasized: “We believe that it is necessary to carry out new energy projects in China and make specific plans an important issue in the future.”

Denso has set up a hybrid technology division at the Shanghai Technology Center. It is reported that the Shanghai Technology Center will focus on the development of vehicle power control systems, hybrid/electric vehicle systems, driver assistance systems, remote service systems and thermal control systems. . It is hoped that this will improve service levels and product competitiveness.

"For the popularization of new energy and energy-saving vehicles that are emphasized in the Chinese market, we will also help China achieve this goal through technology research and development, and strive to improve the environment and achieve energy conservation and environmental protection." Matsushita said that "the introduction of the latest technology in China is not possible." What is lacking, we consider the evaluation of the gasoline/diesel engine management system with ultra-low fuel consumption and low emission technology, the evaluation of HV/EV energy management systems, and the development of systems for China."

Industry needs innovation

Unlike the vehicle joint venture policy, there is no share ratio limitation in the auto parts field. Multinational auto parts companies bring capital, technology and management to the development of China's auto parts industry. Due to the lack of independent research and development capabilities and core technologies, China is independent. Brand parts can only use resources and cheap labor to gain market share.

"Domestic parts companies have not made great progress along with the blowout of the Chinese auto market. The key reason is that local auto parts companies do not pay attention to the input of technical power." Dong Jianping, deputy secretary general of China Association of Automobile Manufacturers, said. How to achieve technological innovation and breakthrough is a common problem faced by China's own brand parts companies.

It is understood that since mid-2011, Denso has cooperated with the China Association of Automobile Manufacturers to carry out lean production education activities mainly for component companies in China, and to provide educational support for lean manufacturing for domestic auto parts enterprises, and to cultivate benchmarks. Under the leading role of the company, the goal of improving the management level of the entire industry is achieved.

This action itself also strengthens the relationship between Denso and domestic auto industry organizations and enterprises, laying the foundation for further implementation of localized R&D and production. "To contribute to the establishment of a sound automobile society in China, and strive to become a business that the Chinese market needs." Matsushita said at the end of the interview.
Some experts said that in the face of fierce market competition, local auto parts enterprises should pay more attention to the digestion and absorption of foreign technology, improve their own survivability, beware of quick success and blind copy, strive to cultivate leading enterprises, strengthen technological innovation, and compete. Seek survival and greater development.

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