In the next five years, China's auto parts manufacturing industry is expected to achieve annual growth of more than 20%. While the demand for new cars continues to drive sales of passenger vehicles, the aftermarket will become the new growth engine for the parts and components industry. This is the forecast announced by Ipsos Consulting.
At present, with the rapid development of the automotive market, the Chinese automobile industry has become the largest cake in the world's automotive industry. As the cake grows bigger, China's auto parts companies will also usher in an outbreak. However, in the short term, it is difficult to reverse the scattered, weak and poor parts of the domestic spare parts industry.
Automotive industry faces transformation and upgrading
Nowadays, residents' lifestyles and consumer behavior have undergone fundamental changes. They are promoting the development of the business model and service model of the automobile maintenance industry in a diversified direction, from the production service type to the social service type.
Last month, 10 ministries and commissions, including the General Administration of Quality Supervision, Inspection and Quarantine of the Ministry of Communications, jointly issued the "Guiding Opinions on Promoting the Transformation and Upgrading of the Automobile Maintenance Industry and Improving Service Quality." The implementation of the "Opinions" will surely promote the healthy development of the automotive aftermarket.
At the 13th China Automobile Industry Development Summit Annual Conference and 2015 China Automobile and Parts Market Analysis and Forecast Conference, Xiao Yaping, deputy director of the China Federation of Machinery Industry, said that the current automotive industry is facing tremendous technological changes and The industrial reforms and the challenges facing the development of China's auto industry have also forced the auto and its parts and components companies to make adjustments and changes in their development strategies and development methods.
Xiao Yaping said: "In the first nine months of this year, China's auto production and sales both exceeded 17 million. There is no doubt that although the growth rate is declining, China is still a big automobile country. To promote the transformation and upgrading of China's auto industry, to truly achieve a fundamental change from a big change to a strong one. This is our long-term strategic goal. This goal is not only the future manifestation of many constituent elements of the Chinese dream, but also the constant practice of realizing dreams as reality."
Industry experts generally believe that from the current point of view, although the potential of China's auto parts market is huge, local parts and components companies are in danger of being marginalized. At present, almost all of the core suppliers of auto companies are monopolized by foreign joint ventures or wholly-owned parts and components companies, and the Chinese auto parts companies have become a serious problem.
Parts industry is difficult to disperse weak situation
It is understood that Chinese auto parts companies have accelerated their overseas investment in recent years. Some auto parts companies are no longer merely satisfied with the export of parts and components, but set up factories in the United States and other countries and regions or directly acquire local companies, hoping to become global auto parts suppliers.
In order to follow the development of new energy vehicles and car networking technologies, many traditional parts and components companies use capital strength to enter these new areas. China's spare parts companies also participated in the acquisitions. The mergers and acquisitions involved areas including stamping parts, exhaust pipe trims, cable products, cast iron cylinder parts, airbags, seat belts and steering wheels, automotive shock absorbers, and fuel tanks.
Xu Changming, director of the Information Resources Development Department of the State Information Center, believes that domestic parts and components companies are small in scale, weak in strength, and lack of research and development capabilities. Under such circumstances, if the parts and components industry wants to develop rapidly, it must speed up mergers and reorganizations to form economies of scale.
According to the survey results provided, only 26% of respondents believe that local parts manufacturing companies will develop upstream of the value chain within the next 5 years, 20% believe that it will take at least 5 years, and 54% do not expect to change in the near future. . Many small-scale local component manufacturers will focus on the increasingly competitive aftermarket, and the export of cheap components will remain strong. In the second half of this year, the automobile anti-monopoly to centrally rectify the “zero-to-lot ratio†of autos, although it is possible to contain multinational companies from the policy level to extract high profits from the parts and components market, it cannot change the scattered, weak, and poor conditions of the domestic parts and components industry.
According to industry insiders, relevant departments should further encourage and promote the existing joint ventures and independent brand auto companies to cultivate local suppliers. Currently, there are many joint ventures that have formed a good mechanism for fostering local suppliers. It is worth encouraging private brand cars to pay special attention to and establish this good mechanism. This is for learning advanced foreign technology and improving the product level and management level of China's spare parts enterprises. It is of great value to open up the international market.