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Foreign-funded parts and components companies wearing “local†outerwear account for 80% market share
Behind the increase in the localization rate, most suppliers of parts and components are controlled by foreign parties, and some are currently pursuing the status of domestic assembly abroad.
Statistics from the Automobile Industry Association show that more than 60% of the top 100 domestic parts and components are being controlled by foreign-funded parts and components companies. The loss of profits from spare parts procurement is already serious. While the localization rate of joint ventures is increasing, the auto parts companies’ survival The environment is getting harder and harder.
Difficulties in independent components
While increasing the localization rate of joint ventures, domestic auto parts enterprises should be the beneficiaries. It can be found from the statistical report of the Automobile Industry Association that 60% of the top 100 auto parts enterprises in China are foreign capital. Control, the entire autonomous parts and components company did not gain more profits in this time of improving the localization rate.
According to China's current automobile industry policy, auto companies must carry out localization work after introducing product manufacturing technology. At that time, the purpose of this policy formulation was to increase the local procurement as much as possible on the premise of ensuring the supporting quality of core components. At that time, some people had predicted that this policy would be a good opportunity for independent parts and components companies to develop.
In fact, as more and more foreign-funded parts and components are built in China, after the foreign-made spare parts have been “localized,†the original parts that need to be imported will naturally become “Chinese-madeâ€. Global procurement has also turned into a "local procurement." A figure shows that about 75% of the 6 models produced by FAW-Volkswagen Automotive Co., Ltd. are purchased locally. Most of these locally sourced parts are from joint venture parts and components companies.
According to statistics from the Automobile Industry Association, the total assets of auto parts enterprises in China were 422.7 billion yuan in 2006, and the total industrial output value was 415.7 billion yuan. The sales revenue was 403.5 billion yuan and the total profit was 23.6 billion yuan. Among them, foreign-invested (controlling or wholly-owned) components accounted for most of the market share, and autonomous components accounted for only 20-25% of them.
“At present, independent parts and components companies still face the pressures of technology, market competition and capital,†Wang Guoqing of the Department of Commerce of Wanxiang Systems Co., Ltd. stated that in 2006, the company’s production investment was more than 100 million yuan, and the profit was only over 20 million yuan. At present, the company's spare parts exports account for only 20% to 30% of the total, and domestic equipment still accounts for a large proportion; but from the perspective of earnings, export profits are much higher than the domestic market.
Independent products are not competitive
Chen Guangzu, a member of the China Automobile Industry Advisory Committee, told reporters that there are currently very few autonomous parts and components companies that can synchronize research and development with the vehicle. Previous problems such as weak R&D capability and low technical content have not been resolved, and high-end technology areas Constrained by people, at the same time in the low-end manufacturing, more and more foreign brands have landed in China. Under these pressures, the competitiveness of independent component companies is seriously lacking.
"In addition to the lack of competitiveness, the quality of domestic parts is also a major problem." An industry source said that due to technical constraints, domestic auto parts and components lack quality assurance, and a joint venture that emphasizes corporate image It is difficult for a brand to assign its responsibility to uncompetitive auto parts companies.
According to industry insiders, “independent parts companies have few opportunities to become first-tier suppliers of automakers because of their own strengths.†From the recent recalls, the problem of parts and components is becoming the main reason for recall. Therefore, The requirements of auto companies in selecting supporting parts and components are certainly more stringent.
Where are the autonomous parts spring?
Xinhua believes auto analyst Houruo Bing said that for the globally listed models, if the joint-venture vehicle manufacturers do not have enough time to develop domestic parts suppliers, they can only rely on the original supporting companies. However, for independent automakers, some independent components should be given priority if quality stability can meet the requirements. "Autonomy is a good way to independence."
At the same time, Lu Zhenxin, deputy general manager of Nanjing Automobile Group, also stated that independent components lack independent development capabilities. Compared with systematic and modular components of developed countries, there is a gap of 10 to 20 years; while our country relies on The advanced automotive technology of Laiyu has lost its own development capability; focusing on the vested interests in the auto market, it has inhibited its own growth and development. Therefore, the production of autonomous auto parts and components has always been rampant at low levels, and even if it is exported Most of the parts and components are also rough-processed at the primary stage. Therefore, at present, independent components need to be taken step by step. Do not rush to export, and you must overcome the impetuous mood. "In this way, the quality and competitiveness of independent components can have a leap in order to promote the development of independent automotive industry."
Autonomy is the way out for auto parts companies