Development Status Chinas auto parts manufacturing industry and prospects

Tags: Auto parts

First, the auto parts manufacturing industry definition and classification
(A) the definition of automobile parts manufacturing industry
Auto parts under normal circumstances means that all parts and components, other than automobile chassis frame can be regarded as part, but not the same concept and components. Wherein parts refer to a single component can not split; part refers implement an action (or: Function) The combination of parts. Member may be a part, it may be a combination of a plurality of parts. In this combination, there is a major part of it to achieve the established action (or: function), the other parts serve only as a connection, fastening guide and other auxiliary role.
Report analyzed automobile parts manufacturing industry mainly refers to the "National Economic Industry Classification" (GBT4754-2011) in the manufacture of automotive parts and accessories, refer to motor vehicles and their body parts for the manufacturing industry code 3660.
(B) The automotive parts manufacturing industry main product categories
Cars generally consists of four basic parts of the engine, chassis, body and electrical equipment components, auto parts and therefore are out of these four sections. Parts by nature can be divided into the engine system, power system, transmission, suspension systems, brake systems, electrical systems and other (general supplies, loading tools, etc.) and the like.
Second, the industry policy environment analysis auto parts manufacturing
Related policies are summarized (a) auto parts manufacturing industry
Since each car needs auto parts reached 10,000 or so, and these components also involves different sectors and areas, large gaps exist in terms of the technical standards and production methods. Currently, the state of the automotive components manufacturing industry still lacks a uniform legal norms and policies on auto parts manufacturing-related policies and national policies are mainly distributed among its related industries.
Motor vehicle parts manufacturing industry chain analysis
Upstream and downstream industries automotive parts manufacturing industry mainly refers to its supply and demand related industries. Upstream mainly supply auto parts industry, raw materials, and downstream is the auto parts needs of industries, including automotive aftermarket front and automotive markets.
The impact on the upstream industry of automobile parts, mainly in terms of cost, changes in price of raw materials (including steel, aluminum, plastics, rubber, etc.) directly related to the cost of manufacturing auto parts products. Affect downstream of auto parts, mainly in market demand and market competition. With the development of science and technology, accelerating the upgrading of automotive products, which requires the auto parts industry to accelerate technological innovation, and provide market demand for products; otherwise it will face difficulties of supply and demand out of line, causing structural imbalances and product backlog.
Fourth, the analysis of automotive components manufacturing industry development
In China, with the rapid development of China's auto industry, auto parts manufacturing industry has achieved rapid development. China's auto sales in 2013 were 22,116,800 and 21,984,100, an increase of 14.76 percent and 13.87 percent, ranking first in the world for four consecutive years. In 2013, automotive components manufacturing industry realized sales revenue of 2.7097 trillion yuan, an increase of 21.69%.
Currently, the world's top 20 well-known auto parts company has set up joint ventures or majority-owned enterprises in China. According to incomplete statistics, foreign investment in Chinese auto parts market has accounted for more than 60% market share. These companies only to China as a manufacturing base, the core technology is still in the hands of foreign, such as automotive electronics and engine parts, control of foreign auto parts enterprises accounted for more than 70%.
The latest data and details see Preview Industrial Research Institute released "2015--2020 China's auto parts manufacturing industry in-depth market research and investment forecast analysis report."
Fifth, China's auto parts manufacturing industry, Five Competitive Forces Model
(A) Analysis of bargaining power supply
Auto parts upstream raw material suppliers often use their monopoly or oligopoly status extrusion parts enterprises. For parts enterprises especially in the second three-tier parts manufacturers (these are mainly small and medium enterprises), its upstream suppliers of raw materials in general is large industrial enterprises. Such as steel, non-ferrous metal producers, in comparison with their bargaining power and negotiating capacity of small parts enterprises is almost zero. Faced with its price, not timely delivery, parts enterprises no way weaker bargaining power.
(B) the purchase bargaining power analysis
Downstream market is OEM auto parts, OEMs use of its strong position in their own interests and corporate profit margins compressed parts. For example, when sales fell enterprises need cost-reduction measures adopted by OEMs is first depressed parts procurement prices. In addition, many SMEs to bear this burden of responsibility that is OEM.
Faced with rising costs and declining sales, OEMs in the efforts to reduce costs, mainly by reducing internal costs, layoffs, lowered the purchase price of raw materials to achieve. The low-cost acquisition would be the most cost-effective control of the method. In the face of strong OEMs, most of the parts of the enterprises do not have the ability to bargain. So parts manufacturers caught in a double squeeze on the downstream profit margins are infinitely compressed.
Many OEMs now require peripheral parts enterprises to establish a third-party inventory. OEMs reason is to reduce their storage footprint and management costs, in order to respond appropriately to changes in the market. And most of these third-party inventory and OEMs are inextricably linked, is such a stock agency, its management is also very confusing. We can not even provide for the inventory in its warehouse to store parts of the enterprise. OEMs irresponsibility is also reflected in the frequent change orders. OEMs can because of their production plans, changes in market conditions and changes to this production order has been issued, and even some parts of its business response month change orders received orders of more than 30 pieces, and each has up to dozens products, changes including delivery time, delivery of various projects the number of product varieties. This adds to the cost of production parts business, affecting its speed of delivery and quality. Frequent change orders exposure is not in place on OEM production management, but this responsibility has been borne by the parts business.
(Iii) industry alternatives threat analysis
While Chinese auto parts industry development, and on some high-end products in the spare parts market is still in a blank state. Due to the long lagging behind, basic parts industry is still poor, 80% of automotive parts technology also rests in the hands of foreign brands, particularly in the field of high-end engine core technology, electronic technology, almost blank, to meet the high-speed car production need to develop tension. Auto parts tariffs will decline year after year, high technology abroad, quality and cheap accessories may become the target of choice for domestic manufacturers, a potential threat to the domestic industry when imports constituted.
(Iv) potential entrants industry analysis
The overall situation in the international automobile sluggish situation, the international automobile and auto parts manufacturing giants have targeted the Chinese market, to divide Chinese auto parts market share. Low domestic Chinese auto parts industry overall technical level, low value-added products, the risk of weak external gear Royal. Therefore higher auto parts industry, the threat of new entrants.
(V) industry competitive analysis of existing enterprises
China's auto parts industry is fierce internal competition, mainly due to the threat of foreign-funded enterprises, low technological level of China's domestic enterprises, supporting the weak, in recent years, some domestic enterprises have been important parts of foreign acquisitions, foreign capital penetration has grown from large enterprises are turning to some small parts enterprises, a large number of foreign invasion is threatening the development of independent brands, independent auto parts enterprises suffered a serious threat to survival.
According to statistics, foreign investment accounted for 60% share of the Chinese auto parts market. Wherein in the car parts industry experts estimate that up to 80% in the core areas of automotive electronic components and other high-tech products as well as the engine, transmission, etc., foreign control of the market share is as high as 90%. Now multinational companies not only satisfied with movers and shakers in the high-end market, but also tap into the low-end market, so that independent parts companies lose territory last survival, and then complete the full occupation of the parts industry.

    Changzhou HuaYang Vehicle Accessories., LTD established in 1993, is a professional manufacturer in vehicle seat components, including various kinds of stamping parts and weldments.
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