China's auto parts industry entered the stage of integration and development in 2013

“Because China’s auto parts market has certain regional barriers and there are many impediments to the development of the industry, opening up the auto parts market to foreign capital will lead to a re-segmentation of the market and guide the industry into a new integration stage.” China Circulation Productivity Promotion Center Automotive Industry Researcher Tie Zhihai said.

It is understood that there are a large number of self-owned brand auto parts manufacturers, but most of them are small in scale, lacking in innovation capability, relatively backward in terms of development methods, and the overall level is poor. In terms of high-tech parts and components, the dependence on multinational companies is still high. .

It is worth noting that the late-stage auto parts market is dominated by joint ventures (analogous vehicle companies). Foreign investment in China's establishment of a factory to occupy the domestic market requires both market and policy support, which determines that foreign-funded enterprises need to cooperate and localize to resolve their business risks. Independent brand auto parts enterprises not only can obtain opportunities for joint venture development, but they themselves will also seek opportunities for self-development in the long-term development.

The flourishing development of foreign capital brings greater challenges on the one hand, but on the other it also provides new development opportunities for local companies. Therefore, Tie Zhihai said that local companies should learn lessons from “market-for-technology” over the years, pay more attention to the digestion and absorption of foreign technology, improve their survivability, guard against quick success and blind copying, and strive for survival in competition. With greater development. At the same time, in order to achieve development, China's auto parts companies must, like other industries, form a group scale advantage, and the development of leading enterprises is the only way. At the same time, it is imperative to speed up structural adjustment and realize integration of resources, otherwise it will be possible to lose the living space in the competition.

Experts said that self-owned auto parts companies should actively respond to two situations. On the one hand, companies should use mergers and acquisitions and joint ventures as the first measure to defend foreign brands against the impact of a stable market share; on the other hand, companies should be active. Imitate and then independent research and development to expand the independent production capacity, improve the competitiveness of enterprises, in order to ensure that in the mid-long-term development of the company's scale continues to expand.

It is reported that the "Foreign Investment Industry Guidance Catalogue (Revised in 2011)" previously issued by the National Development and Reform Commission and the Ministry of Commerce will encourage the shift of emphasis from "whole vehicle manufacturing" to "manufacturing and R&D of key components", and at the same time, cancel some areas of foreign investment. The ratio limit of the shares, there are 11 fewer than the original list.

Experts said that from the introduction of complete vehicle manufacturing to key component manufacturing and R&D, it is indicated that the policy is changing. From an industry perspective, according to the investment steps of foreign capital, China’s auto parts industry will experience two changes: First, the market structure will appear. After the changes, once the investment is released, the foreign-funded product market will continue to expand. Second, China's auto parts manufacturers will face long-term integration. Industrial integration will promote the overall competitiveness of China's auto parts industry.

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