Japanese Parts Asia-Pacific Ladder Tactics: Reassessing Chinese Roles
The decline in sales of Japanese cars did not affect the investment plan for Denso in the Chinese market. This position, and the current rumors of Japanese parts suppliers began to shift to the Southeast Asian market, some do not "take".
As Japan's largest supplier of automotive parts , Denso plans to transfer some of Japan’s domestic production capacity to Thailand as a major export base by 2015. At the same time, it will invest USD 200 million in Indonesia to open a third auto parts factory.
“Actually, since 2006, Denso has shifted some of its low-end component manufacturing operations to Southeast Asia. This does not mean that we will slow down the investment in the Chinese market.†The above sources told reporters that by 2013, DENSO will be installed in China. The second R&D center will be completed in Shanghai, which means that the electric equipment has never changed in the localization strategy of the Chinese market.
Compared with the reliance of suppliers in the first and second grades on the Chinese market, Japanese auto parts SMEs located in the third and fourth-tier supply systems are actually slowing the pace of their business transfer to China. One of the latest developments is that 50 Japanese small and medium auto parts companies planning to invest in China's Danyang earlier this year have worried about investment failures due to the Diaoyu Islands incident and have delayed their investment plans.
Who needs China more?
If there is no Diaoyu Island incident, 2012 should be the first year for large-scale Japanese auto parts companies to invest in the Chinese market. This change is closely related to the major earthquake in Japan last year.
The earthquake and tsunami once caused the disruption of the auto parts supply chain. This has had a great impact on the Japanese auto industry, and small and medium-sized component companies bear the brunt.
“The auto parts manufacturing company in Japan has the lowest auto parts production rate, with an average of only 30%, and the remaining 70% are all purchased from parts and components companies. Currently, Japan’s major OEMs and one- and two-level component suppliers have matured in China. However, the 3rd and 4th suppliers still remain in Japan, and such an industrial layout has highlighted the drawbacks in the Japanese earthquake.†A person in charge of a local spare parts company that produces wheel technology components told reporters.
In order to shift risks, many parts companies in Japan started accepting the concept of investing and establishing factories overseas in early 2012. The closest Chinese market to Japan has become their investment priority. “Chinese consumers’ strong spending power on automobiles and related products cannot be ignored.†Mitsuzada Haruka, deputy general manager of Aisin Seiki (China) Investment Co., Ltd., told reporters in April this year that many Japanese parts companies are China will be the focus of investment.
Different from the one- and two-tier suppliers that have already achieved localized production in China, most of the products of Japan’s third- and fourth-tier suppliers are sold to the Chinese market by way of imports. The key components and core technologies of Japanese automobiles are mostly controlled by these small and medium-sized enterprises. Hands.
Take the automatic transmission as an example. Many key components, including European and American models and self-owned brand models, are actually produced in Japan. Among these components, high value-added components, including semiconductors and microchips, Japan has an absolute advantage in the world.
After the Great East Japan Earthquake in 2011, the production of the above-mentioned parts and components stopped production, causing the supply of key parts such as global microchips, engine controls, ABS, and airbags to be strained. At that time, a U.S. agency had predicted that the shortage of parts caused by the earthquake in Japan would reduce the global automotive industry by about 30%.
Wu Shuai, managing director of Shanghai Xiaojue Lights Co., Ltd., said: “At present, the world is almost monopolized by Japan on the three key components of electronic control components, electronic control modules, and automatic transmissions. Both the Japanese and European and American cars are It depends heavily on Japanese manufacturing."
Now it is the Japanese small and medium-sized component companies that produce these components that are trying to shift the direction of investment from China to Southeast Asia. This point has already appeared on the "6th China International Auto Parts Expo" opened on October 26th.
At the annual event of parts and components sponsored by the Ministry of Commerce, Japan’s small and medium-sized parts and components companies were almost absent. Only internationally renowned first- and second-tier suppliers such as Denso, Aisin, and Toyota Textile were still participating in low- The importance of the Chinese market.
In fact, as the first Japanese spare parts company to follow the Japanese vehicle companies in China, the partners of Japan's well-known parts suppliers such as Denso, Aisin, and Toyota Textile are not confined to Japanese vehicle companies. They are interested in expanding and The proportion of multinational automobile manufacturers’ business ventures in China has been seen as an important part of expanding international business. Their business development has been inseparable from the Chinese market.
The opening and expansion of the system
While parts companies in Japan shifted to Southeast Asia, Europe and the United States spare parts suppliers have accelerated their deployment in China. Of course, the fermentation of the European debt crisis and the downturn in the European automobile market have further contributed to this shift.
The openness of the European spare parts system is also reflected in its relatively active localization strategy. In mid-October, the largest single-unit investment in China, Delphi, the largest component giant in the United States, managed the largest single investment in China in 20 years, totaling US$100 million in diesel engine management. The Yantai production base was formally laid.
"Delphi's goal is to double our sales in China in the next 3-4 years, and on this basis we must strive to double again in 2020." Delphi Global President O'Neill, who came from the US headquarters, told the media earlier that even The arrival of the era of micro-growth in the Chinese market still means a huge opportunity for Delphi.
Prior to this, Delphi, which relied too much on the US market, had begun to shift its core business to Asia due to the downturn in the European and American markets. The digital contrast is very obvious. From the point of view of sales, the North American market, which occupied 70% in 2005, is currently down to 30%, while Asia Pacific has grown from 6% to 20%. This year, Delphi’s sales in Europe have fallen in its largest market, while Asia Pacific continues to maintain its 12% growth. Currently, 20 of Delphi's global manufacturing product lines have been manufactured, designed, and developed in China. Delphi has 22 production bases and two technology centers in China.
In order to adapt to the needs of China's localization, especially the deepening of vehicle manufacturers to the west, parts and components companies in Europe and the United States have also accelerated the speed of the Nuggets in the west. On the 12th of this month, Bosch, the world's largest supplier of components, invested RMB 700 million to open a new R&D center and factory in Changsha. It is understood that one-third of the resources of the Technology Center will be used to develop start-up and parking systems for Chinese car companies.
"The assembly rate of start-stop systems in the Chinese market by 2017 may reach 20%," said Sun Guozhong, president of Bosch's starter and generator division in China, in response to the media. As a window city of China and the West, Changsha has attracted GAC Fiat, GAC Changfeng, Geely, Zhongtai, Beiqi and BYD to establish production bases here.
In addition, in order to further consolidate its operations in Asia and especially in China, the European and American parts companies are also accelerating the pace of mergers and acquisitions. On the 26th, Delphi completed the acquisition of the Automotive Products Division of the FCI Group. After the completion of the merger, Delphi and FCI became the world's largest manufacturer of secure connectors. “The deployment of FCI in the world is very helpful for our global deployment. Especially in China, FCI's new factory just established in Nantong, China, and Delphi's connector in Anting can form a clear complementarity.†O'Neill told the media.
Previously, on the 22nd, Dongfeng signed a joint venture contract with GETRAG International, an independent supplier of German gearboxes, and a joint agreement on low-torque DCT development. At the same time, the two companies will set up joint ventures with a dual-clutch transmission with a 50% shareholding ratio. In May of this year, Bosch and Chery signed an agreement with Actech Australia to establish a 60%, 30% and 10% joint venture to develop and produce automotive multimedia products including automotive instrument clusters and infotainment products, and new joint ventures. The Bosch Automotive Instrument Asia Pacific R&D Center will also be established in Wuhu.
However, even if the European and American systems are relatively open, they still cannot solve the fundamental needs of Chinese components for core technologies. "In addition to the help of talents and system development, Europe and the United States will not open up core technologies easily," the industry source said.
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