The latest research findings of the China Automotive Components Industry Development Task Force show that China's auto parts industry is showing five major trends. This was revealed by Li Zengfeng, director of the Automotive Industry Planning and Design Institute of the China Automotive Technology and Research Center, at the China Automotive Industry Development International Forum recently held.

The first big trend: companies are increasing differentiation

According to analysis, market competition is a direct manifestation of the role of the market in the allocation of resources. As market competition intensifies, the integration and differentiation of companies will occur frequently, and profits will be unevenly distributed among different companies. While some companies still receive high profits, others will find themselves in business difficulties and will be merged or eliminated.

The automobile industry is a capital and technology-intensive industry. Whoever has the core technology and strong capital will have the right to speak in the automobile industry and will be able to extract high profits. In a short period of time, foreign investment will remain the dominant force in the Chinese auto parts industry, especially in the high-end parts and components of passenger vehicles.

Since the reform and opening up, private auto parts companies have made considerable progress and have already had significant competitive advantages in some parts and components. Some companies have successfully entered the international market. Private auto parts companies will become an important force in China's auto parts industry.

China's auto market has the characteristics of “rapid development, large capacity, multi-level, and easy access”. The potential market capacity determines that various capital entities have their own place in a relatively long period of time. No matter how powerful a multinational company is, it must start from building a workshop, setting up a sales outlet, etc. It needs to accumulate localized knowledge. Under this new situation, the cost of Chinese auto parts companies learning advanced international technology and management knowledge has been greatly reduced, and has a significant comparative advantage in localization knowledge. Li Zanfeng predicted: "A large number of large enterprises based on the domestic domestic market will emerge."

The second largest trend: the industrial structure is gradually being optimized

At the present stage, the first-tier supplier network is relatively closed and has strong independence. At present, although different capital entities and different supporting systems have seen a trend of continuous integration and optimization, the fundamental differences in the interests of different capital entities and different supporting systems have determined that independent development is still the mainstream of the parts and components industry. Therefore, Li Zanfeng believes that the coexistence of multiple supporting systems will exist for a long time.

China's huge market development space will inevitably lead to supply chain collaboration needs with local cultural characteristics. Although China has a large gap between the economic scale and operating efficiency of the automobile industry and the developed countries, it has a certain number of autonomous vehicle brands and gathers a certain amount of independent industrial resources in the middle and low-end commercial vehicles and economic passenger vehicles. . Li Zanfeng said: "If the policy is properly guided, based on the characteristics of ethnic culture, a competitive supply chain cooperation system, may first form in the field of commercial vehicles and economic passenger cars."

The third major trend: the policy environment is conducive to the development of parts and components industry

“The continued implementation of the introduction of foreign investment policies and the reform of the investment access system have created a convenient environment for all types of capital to enter the Chinese parts and components industry.” Li said that this will accelerate the localization of parts manufacturing and promote the development of parts and components technology. And increase production capacity.

Accelerated implementation of regulations on environmental protection, energy conservation and safety will also greatly promote the development of advanced parts and components technologies and accelerate the gap between China's auto parts industry and the international advanced level.

The fourth trend: The cultivation of self-owned brands promotes the improvement of core competitiveness

The continuous expansion of automobile production will become the main force driving the development of auto parts industry. Li Zanfeng said that the biggest contribution to the scale development of China's parts and components industry will be its own brand of economical passenger vehicles.

The Task Force believes that the leading role of the development of self-owned brand vehicles is the driving force for the improvement of the core competitiveness of China's auto parts industry.

Fifth Trend: China Becomes a World Parts Manufacturing Center

According to reports, the countries where the post-war auto industry achieved great development have one thing in common: most of them have been under great pressure. Its success shows that the core drivers of industrial economic growth are high-level human capital, rapidly advancing science and technology, different levels of human resources, investors' continuous efforts and a vibrant domestic market.

The sustained release of the advantages of the country's technological innovation costs after the industry has determined that China's auto parts industry will become an important part of the world's parts and components industry. In this regard, Li Zanfeng pointed out: "China is likely to become the world's spare parts manufacturing center."


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