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    China's cost advantages will not lose billions of parts or orders

    The rising prices of raw materials, selected price increases in many industries to extract, but the auto industry this "timid" - the automotive industry in a chain of auto parts, vehicle production, the three major automobile trade links, only the automotive components The tire is a rare dare to price hikes, while the sustaining power from the technology and the relative market monopoly.

    The same vehicle, the cost and double the price of automotive components also squeeze in a film of the crossing. According to the global business consulting firm Al-ixPartners latest research results show that, due to the appreciation of the renminbi, rising raw material prices and other factors, China's exports of parts and components and parts of the cost increase by 16 percent, and foreign buyers interested in parts of China started to decline gradually reduced The scale of procurement in China. Because of the lack of high value-added products, in 2010 there will be 16 billion U.S. dollars of parts orders "flee" in China.

    In the face of the cruel reality, the Chinese auto industry will be how to respond »

    Oil prices break through 130 U.S. dollars; global automotive steel giant Nippon Steel price increases of 30% of Toyota Motor, the price per ton more than 100,000 yen, hit 26 to the highest price in the Tokyo Stock Exchange, the rubber hit since June 2006 ¡­¡­ A new high in key raw materials and energy continued to rise as a backdrop, the auto parts industry chain links, manufacturers mixed reactions: tire giants do not hesitate to choose the price hikes, but most auto parts enterprises can only choose Maintain the original price.

    International auto industry chain of distribution of profits of about 5:3:2, that is, automotive parts and components industry chain enterprises accounted for about 50 percent of the total profits; vehicle manufacturing enterprises accounted for about 30 percent of trade in the car who was about 20 percent of the profits. However, since many parts enterprises, the concentration of less than vehicle, bargaining power is not strong, so, in fact parts of the enterprises below the average rate of return on investment vehicle, according to the rate of return are high to low, followed by automotive trade, Vehicle production, automotive components.

    Because of this, car prices of raw materials, traders in the response is not intense, but vehicle manufacturers are mixed. "Only from the impact of rising steel prices, the dignity of the more serious the greater the affected vehicles." Shun Sun Muzi Securities auto analyst pointed out that "steel prices rose on the impact of commercial vehicles larger than passenger cars, trucks account for the weight of steel Weight of 70 to 80 percent in passenger cars, steel prices rose on the economic impact of low-cost more. "

    Guise car network CEO Wen-Kai Chen also support this argument: the rise in raw material costs, the impact of high-end brand car was significantly lower than in the low-end cars. This is the automotive industry from the value-added factors. After a car assembly, logistics, sales of several major areas, and high-end brand vehicles of the original wood material cost share is not high, the recent raw material prices rose only about 0.5-1 percent, and high-end brand cars can Through scale and technological innovation to digest out this part of cost pressures. But in the low-end cars are completely different, one of about 30,000 cars, steel prices may be eaten at the end of its five percent.

    Enterprises with the same vehicle, auto parts enterprises the ability to confront different cost pressures. Sun Muzi, two types of parts and components enterprises have the ability to pass cost pressures. First,Éí´¦relative monopoly in the market segments, such as the tire industry. Second, enter the vehicle matching system, with core intellectual property rights or the competitiveness of enterprises, such as Bosch Automotive, the Japanese Electrical, and so on.

    Other auto parts enterprises Jiaokubudie. In an interview with reporters, an automobile chassis manufacturers said that the recent negotiations and the car business, every time break up in discord. Baosteel supply of raw materials rose by nearly 10 percent, vehicle requirements and we shared enterprise, but always Tanbu Long.

    In overseas markets, the crisis also began to Xixiang China's auto parts industry. Global consulting firm PAC Group survey data shows that in 2008, General Motors, Toyota, Ford, and other three auto giants in China, the procurement of spare parts will reduce the expected value of 8 billion U.S. dollars in 2010, the three auto giants in China will reduce purchases or 16 billion U.S. dollars.

    A transnational auto giants to purchase the main reason is that China's major auto parts at low prices to win, and do not have core competitiveness, once the price increases, will lose appeal. From the global business consulting firm Al-ixPartners the latest research results show that in less than a year's time as a result of the appreciation of the renminbi, rising raw material prices and other factors, some Chinese exports of parts and components production costs increased 16 percent. The car guise network's investigation report further noted that due to China's lack of standards and low prices of parts and components suppliers, about 80 percent of the transnational auto giant did not achieve the procurement volume in China and the goal of reducing costs.

    For parts of the plight of enterprises, the China Association of Automobile Manufacturers Dong Jianping, deputy secretary general does not have sympathy. Held in Harbin in the first session of the 63 vehicle accessories trade fair, Dong Jianping "Chao Zuoye" as a metaphor, sharply pointed out: In the past, we stem the added value is the lowest section, and not rely on the wisdom of making more front Some of the money. The operation can not copy someone else's graduation.

    Dong Jianping, China's auto parts production enterprises must be carried out technical innovation. Only the development of high value-added products, automotive components to China from the "production, technical, research and development have been increasingly marginalized" the situation. On the other hand, the current cost pressures more pressing revealed from the "Made in China" to "China to create" the necessity and urgency.


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