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    Observation of China's auto parts industry, "salvation"

    With the price advantage in domestic and overseas markets to fight a Xuelu the Chinese auto parts suppliers who have suddenly found themselves cornered by the reality of life and death marginal and difficult to extricate themselves. The local auto parts enterprises, policy alone can not protect the need to adhere to independent innovation, and strive to deal with bigger and stronger is the best way to impact foreign investment.

         A clear signal that the local parts manufacturers for the survival of low-cost advantage is being rapidly lost. In less than a year, some of the cost of domestic exports of parts and components increased 16 percent, the Chinese parts of the manufacturing cost is no longer cheap.

         But also parts suppliers worried about is: With the appreciation of the RMB and the export tax rebate rate has dropped, many international buyers Yiqingbielian, attention will shift to a more price advantage of Vietnam, India, Thailand and Australia and other countries and regions, Those who are heavily dependent on international procurement suppliers fall into the abyss.

         Is not just a misunderstanding

         "16 billion U.S. dollars large-Pangla, Made in China being marginalized," and "no longer cost advantage, China lost hundreds of billions of parts or orders"¡­¡­ Not long ago, a similar horror of the title have appeared in some domestic media on the importance of space , Cited the fact that these reports come from the company - a global consulting firm PAC Group.

         The provision of a survey data showed: 2008, North American sales of the three largest car manufacturers in China for the procurement of spare parts than originally anticipated decrease of 8 billion U.S. dollars up to 2010, a total decrease of 16 billion U.S. dollars (about 1100 100 million yuan). If the real data, the loss of hundreds of billions of orders, in terms of China's automobile manufacturing industry is very serious consequences. This triggered a trade for the automotive industry, "Made in China" worried about the future.

         In a series of tracking, data issued by the data have to admit that there are unreasonable places. Data is not directly reduce the multinational companies in China procurement volume, but by 2005 transnational Motor Company announced the expected amount and the actual purchase of procurement that the projected shortfall.

         Finally clarified the matter, this is a misunderstanding. But also makes people reflect on: Even if there are mistakes in the conclusions of data elements, it also means that China's auto parts industry can sit back and relax? »

         Is the loss of market

         "Now the export business more difficult." Many parts suppliers are very frustrated, obviously felt the pressure from the international market. RMB appreciation, rising raw material prices, changes in tax policy, labor costs rose and oil price hikes caused by the rise in the cost of logistics, parts and components that affect the global competitiveness of China's major elements.

         Transnational auto companies in China to delay the procurement performance, a survey report shows that multinational companies in China in 2007 the results of the procurement was not as optimistic as expected, almost 80 percent of the company have not reached the procurement volume in China And procurement costs drop goal. One can be sure of the fact that transnational car companies are gradually procurement base in the transfer.

         According to reports, the Fiat Group in New Delhi, India has set up a global procurement office, is expected in 2008 will purchase 30 million euros worth of spare parts, plans to 2010 this goal will be upgraded to 250 million euros.

         New Delhi and BMW are the establishment of an international procurement center to purchase auto parts, IT software and automotive engineering services. The company is currently working with India over the local automotive parts manufacturers in India to expand the negotiations to purchase spare parts and variety of channels. Not long ago, the company has just purchased a small number of Indian car driver and car door handles, and so on.

         Marginalization of worries

         Related statistics show that the current foreign investment in China's nearly 500 parts and components enterprises, including Visteon, Delphi, such as BorgWarner and the world's top 500 transnational companies, parts suppliers, without exception, are in China has set up joint ventures or wholly owned enterprises. , The trial of strength in foreign investment, mostly from local suppliers in China, has become increasingly marginalized.

         A typical example is that almost all the domestic components of the core businesses, multinational corporations are wholly owned or controlled by the form of monopoly. According to statistics, foreign investment in Chinese auto parts market has accounted for more than 60 percent of the share, and in the car parts industry, some experts have estimated will reach more than 80 percent. In addition, automotive electronics, and other high-tech products as well as engine, gearbox and other core components, and other key areas, foreign control of the market share even as high as 90 percent.

         With the foreign parts in-depth localization in China, local manufacturers will further squeeze the living space. Most local parts manufacturers have not formed their own technological superiority, even if some companies present time flies reasonably well, but still remain in the low-end products or marginalized. The core components market almost from the main foreign-funded enterprises, once lost the dominant position of the market, is likely to mean that local parts suppliers were "hollowed out.

         Gongchengluede the face of massive multinational companies, local auto parts enterprises want to protect a certain policy. The existing policy on the auto industry vehicle joint venture shares than there are restrictions on foreign ownership can not exceed 50 percent, however, parts of the joint venture is not clear restrictions than shares. In the absence of shares than the limit, the first foreign-funded enterprises are often taken to a joint venture owned the line. If not for certain restrictions, local parts and components enterprises will make more "passive."

         However, in the current situation, the intensity of China's opening to the outside world can only be increased, it is difficult to turn back. China Machinery Industry Federation Zhang Xiaoyu, vice president recently said: "In the future, China's 50:50 joint venture vehicle of shares than the limit will be broken, the share of foreign investment than stocks will further intensify." Vehicle joint venture even so , Not to mention parts enterprises »

         So who is going to save the parts and components industry » The industry pointed out: China's auto parts manufacturing enterprises only to technological innovation, developing high value-added products, can be completely out of "production, technical, research and development have been increasingly marginalized" the situation. In short, save the parts and components industry had to rely on their own.

         The local auto parts enterprises, policy alone can not protect the need to adhere to independent innovation, and strive to deal with bigger and stronger is the best way to impact foreign investment. Judging from the current pressure, the more pressing revealed from the "Made in China" to "China to create" the necessity and urgency.

         In fact, persist in independent innovation and technical cooperation is not external conflicts, local enterprises should use all parts ways upgrade its technology, must not simply copying. At the same time do a large-scale, not on price. In short, can only rely on their own to Pinbo a strong self is the same theme.


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