Urgently Develop Low-end Components Affects the Development of the Automotive Industry
In recent years, the rapid development of the domestic automotive industry, with China becoming the world's largest automobile production and sales, the domestic auto parts industry is also growing. Although the industry is large in scale, it lacks economies of scale, and most of the key component subdivision areas are occupied by foreign capital. At present, China's domestic parts and components industry is only weak, small and scattered. The competitiveness of the entire industry is mainly reflected in Cheap labor and resource costs. This is incompatible with the rapidly developing Chinese auto industry.
The rapid expansion of the domestic spare parts industry, the sharp increase in the number of companies, and the consecutive year-on-year growth in exports have not changed the weak reality of the industry itself. Due to the lack of independent core technologies and brands, most of the domestic parts and components companies can only compete on labor-intensive products with high resource consumption and low profit margins. They see the core parts and components market, including the powertrain, being used by international component giants. Firmly controlled, but more than enough. This also makes China's spare parts industry has been constrained to the development of the vehicle.
Ti Zhihai, a researcher at the China Circulation Productivity Promotion Center, said that due to the lack of long-term strategic considerations for domestic parts and components companies, the low-end products and foundry industries that are easy to use and benefit from have been launched in large numbers, thus ignoring the absorption and digestion of advanced technologies. . At the same time, foreign investors are also interested in blocking core or cutting-edge technologies or processing them overseas.
Shen Jun, vice president of Greater China of Roland Berger International Management Consulting (Shanghai) Co., Ltd., said that if the self-owned brand auto companies do not have the core parts and components technology, the profit rate will be very low. According to statistics, the self-owned brand's current sales share in the Chinese market is roughly 1/3, but the sales share only accounts for 20%. The reason is that there are more low-end models and very few high-end models. In terms of profit contribution, only 10% of the self-owned brands contribute, and 90% are international brands. This means that although the self-owned brand gains 1/3 of the market share, only one-tenth of profit is obtained, which largely affects The ability of independent brands to achieve sustainable development. This is undoubtedly related to the weakness of the development of parts and components industry and shows a clear gap with international brands. Experts said that the “damage†brought about by the “controlled by people†has exceeded the parts and components industry itself, and further affected the long-term development of China’s auto industry. This also means that if China's auto industry wants to become bigger and stronger during the "12th Five-Year Plan" period, it must complete the shortcomings in spare parts as soon as possible.
Although the problem is found, it is not an easy task to truly resolve it as soon as possible. In order to achieve this, we must first reverse the current concept of "reforming light vehicle parts and components" and increase investment in parts and components to enhance the industry's technological level and research and development capabilities. In addition to the input of the enterprise itself, the state should also introduce incentive policies from the policy level to guide the healthy development of the industry and technological upgrading. Moreover, in this process, it is also necessary to actively adopt an international cooperation strategy, introduce advanced foreign technology, and digest, absorb, and re-innovate and train its own talent team. With the rapid development of automobiles, the parts and components industry must be strong.
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