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    Three major development trend of auto parts destined to greet Golden Decade

         China's auto production this year will exceed 10 million, export growth in more than 35 percent, five years after the car will keep in close to 100 million. After five years of the golden period of development, the Chinese auto parts enterprises can continue to enjoy the "rapid development of the automotive industry," the feast »

         According to journalists in the June 2 opening of the "2008 China Shanghai International Auto Parts Exhibition" on the information obtained, 2003 to 2007, a large number of auto parts enterprises with annual sales income from the development of more than 10 billion Ji Yiyuan even Billions of dollars, some companies even have the orders into the year 2010.

         Stimulating growth in the auto parts industry troika is supporting the domestic market, the sale and export markets, in 2007 the three major market size more than 740 billion yuan, net imports of about 800 billion yuan in China's domestic production of parts and components Output value has reached the level of around 660 billion yuan, compared to five years ago about 200 billion yuan more than three times the growth.

         "As long as China's economic and financial environment is not a big accident in the next 5-10 years, the auto parts industry is still the most promising one of the industry." Steam in the Association of experts that one.

         The next five to 10 years, the Chinese auto parts market will be what changes » Parts of foreign capital enterprises in the development trend »

         Supporting the market - are difficult to enter the new

         "The next five to 10 years, China's auto production will reach a conservative estimate about 15 million. Upgraded models of the factors considered, it is estimated that the value of supporting market growth will be more than doubled." Steam in the Association of the expert said that although the Tremendous market opportunities, but the core of all vehicle plant suppliers will be more stable, which means that new entrants will be increasingly difficult to enter non-traditional supply system.

         The reason is that, more and more foreign parts and components enterprises invest in China, domestic vehicle production plant transnational have the opportunity to re-organize its core strategic supplier system. According to "China's auto parts Blue Book" analysis to Toyota as the representative of Zhuji Chang and parts manufacturers close "relations, the whole model," the market has been widely recognized, more transnational car companies follow the example of foreign parts and components enterprises The matching share is increasing.

         According to statistics, currently the country on the scale of more than 5,000 auto parts enterprises, is more than 1,200 foreign-invested enterprises, most of which is the world's top 500 enterprises, business is concentrated in the body, engine, transmission, axles, trailers , Steering, electronics and other fields, occupy the high ground of the competition in the market.

         In addition, the transnational auto companies because the supporting traditional, high-tech and high value-added content areas, and basic matching the original transplant foreign relations. At the same time, the world's largest auto parts maker through the acquisition of local parts and components enterprises and improve the investment ratio in China factory into a holding company or wholly-owned subsidiary.

         "From the strength, the local auto parts enterprises with foreign parts and components enterprises can not compete trend, the majority of them engaged in labor-intensive products processing and the production, low-tech products. Many local enterprises have also Just stay in imitation stage. "The Association of steam in the experts said.

         After-sales market - competitive upgrade

         Automobile industry estimates, the U.S. car market reserve of about over 200 million units, each of aftermarket auto parts market demand of about 120 billion U.S. dollars. If the tenure of China reached 100 million, a year after-sales parts and components market will reach nearly 300 billion yuan more than the scale.

         The attractiveness of the market is more intense competition, according to "China's auto parts Blue Book" analysis, the next five to 10 years, this trend will be reflected in competition in two areas: different types of competition among suppliers and The competition between different Format.

      
         Different types of providers struggle embodied in the main, original parts and components suppliers in addition to OES (original spare parts) to the car factory, car plant by the 4 S-store sales, will increase the intensity of their own brands to enter the independent aftermarket Sales.

         Parts giant Delphi's move is a recent note. Delphi was set up last year in Shanghai Delphi Trading (Shanghai) Co. Ltd., in April this year, with priority assigned Trading (Shanghai) Co., Ltd. (UAP) formally signed an agreement to the 2012 target, in 1000 the establishment Guide And 300 stores and tens of thousands of authorized service agencies.

         "In addition to the traditional after-sales market and our distributors channels, gifted with the help of Delphi hope that the retail channel edge, matching the quality of the Delphi auto parts products through the retail network of ports at the hands of customers." Delphi China's total area Manager Kang Bo said recently.

         The competition between different Format, will be mainly reflected in the control of the vehicle plant after-sales channels 4 S stores, chain stores and auto service between the competition.

         A recent survey found that many car owners in Shanghai 4 S shop car, the choice to the United States Jushi, Anji yellow hat (YellowHat), and other automotive service chain transfer coating of splitting and modification, vehicles beauty. For a membership card, even the routine maintenance of these chain stores have to.

         Export market - the main theme

         For the automobile industry, mainly reflected in the purchase of transnational auto vehicle production plant or large parts manufacturer to purchase low-cost countries, in addition to procurement of parts and components, or even to the procurement of the OEM assembly.

         According to "China's auto parts Blue Book" analysis, in the automobile industry of transnational purchasing, China is the most important goal of low-cost countries, many multinational companies in China set up the procurement of ambitious goals. If these multinational corporations of the overall goal of total procurement, from 2003 to 2008 is estimated to be as high as 200 billion U.S. dollars and above, set up in China's various types of procurement centers to about 400 to 500.

         With the appreciation of the RMB and the export tax rebate rate of decline, transnational procurement in China gradually increase the pressure on the international buyers to look at the same time have been transferred to Vietnam, India, Thailand, Australia and other places.

         "The current international buyers to purchase China's increasingly rational and practical, by selecting and training of potential suppliers to the core; intensify its own logistics integration; decentralized procurement destination, and other emerging markets compared locations, including procurement decisions to advance the process of procurement in China . "Association of steam in the expert said.

         It is understood that to cut costs, Volkswagen Group intends to five years in China to reduce the number of suppliers 1 / 3. Nissan Motor recently said that Mexico will be in emerging markets such as countries in the factory for the procurement of targets, by 2010 fiscal year, so that local procurement rate from the current 70% to 90%.

         Despite the competitive environment has become increasingly brutal, in the steam or the Association of experts predict, export and international parts of the Chinese enterprises will be the next 10 years one of the main theme.


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