On September 7, 2011, at the 5th (2011) China International Auto Parts Development Summit Forum held in Beijing, officials from the Ministry of Commerce, the National Development and Reform Commission and the Ministry of Industry and Information Technology, well-known experts in the automobile field at home and abroad, and Chinese and foreign cars and Senior executives of parts and components companies and representatives of China's 12 automotive and parts export bases, based on the theme of “Transformation of Automotive Components in Global Changeâ€, expressed their views on various issues concerning the development of auto parts industry.
Domestic parts companies must rely more on self-owned auto companies
Regarding the development opportunities facing the auto parts industry, Xu Changming, director of the Information Resource Development Department of the National Information Center, believes that as the Chinese auto market will continue to maintain a growth rate of 12% to 15% in 10 to 15 years, as well as the auto industry’s The rapid development of internationalization and domestic auto industry will bring considerable opportunities to the parts and components industry.
According to a set of data provided by Xu Changming, Japanese automakers produce parts used in vehicles in China, 10.5% are imported exclusively from abroad, 29% are wholly foreign-owned products, and 60.5% are Sino-foreign joint venture products. Purchasing parts and components of domestic-funded enterprises; US car companies are also roughly the same, but the proportions are not the same; European car manufacturers purchase 5.6% of domestic-funded parts products; only self-owned car companies purchase 52.8% of spare parts produced by independent companies. product. From this we can see that the development of self-owned brand cars will inevitably drive the development of China's spare parts industry; of course, the development of independent parts and components industry will also promote the development of self-owned brand automobile industry.
According to incomplete statistics, the total output value of the domestic auto parts industry has reached 1.64 trillion yuan, according to Li Kaiguo, vice president of the China Automotive Engineering Research Institute. However, he also pointed out that this output value is produced by 30,000 auto parts companies, and the average output value of each company is less than 60 million yuan. To some extent, China's auto parts industry is still very weak.
Xu Changming also proposed that auto parts enterprises face three challenges in the development process: First, the competitive advantage of independent components depends on their survival, and the cost advantage is being weakened. On the one hand, foreign-funded parts and components companies rely on the advantages of scale and R&D. The more obvious cost-competitive advantage of localization, the other is that the original labor and raw material competitive advantages of independent enterprises have gradually weakened in recent years; the second is the improvement of standards and changes in laws and regulations, and the formation of technologies for autonomous parts and components companies. The double pressure of cost, the faster the standard is raised, the greater will be the pressure on the independent parts and components companies; Third, the popularization of modular production and simultaneous development, and the formation of higher and higher technical barriers for independent parts and components companies, domestic domestic-funded enterprises There are too few autonomous parts companies that can develop synchronously with the entire vehicle and do modular production, or almost none.
To this end, Xu Changming’s “prescription†for autonomous parts and components companies is to strive for the government’s greatest support under the WTO rules and organize joint research. It will be strategically bigger and stronger, and will also use the power of the Auto Group Corporation. Xu Changming expressed some dissatisfaction with related policy issues. He said that even the catering industry has given many indicators to listed companies, but auto parts companies have few indicators. China will become a strong country in the future, mainly relying on manufacturing.
Shen Jun from Roland Berger International Management Consulting (Shanghai) Co., Ltd. gave another kind of “prescriptionâ€, that is, relying on mergers and acquisitions to obtain core technologies, and thus obtain high-end profits in the industrial chain. This coincides with Xu Changming’s proposal of “focusing on international acquisitionsâ€.
Merger and Acquisition Integration is an Important Means in the Future Development of Enterprises
The data shows that the sales volume of self-owned brand cars in the Chinese market is roughly 1/3, but the share of sales (amounts) only accounts for 20%, which is 10% less. The reason is that there are more low-end models and fewer high-end models. If you look at the profit contribution again, only 10% of Chinese automakers will contribute, and 90% will be international brands. This means that although the self-owned brand has gained 1/3 of the market share, the profit is only 1/10. In comparison, the overall level of development of the parts and components industry is even much lower than that of China's own brands, which greatly affects the ability of independent brands to achieve sustainable development. Therefore, Shen Jun pointed out that if the independent brands do not master the core components and technologies, the main result is that the profit rate is very low.
Shen Jun believes that how to obtain some leading technologies through international mergers and acquisitions, how to find some favorable opportunities, and find some potential acquisition targets will become very popular topics for Chinese companies.
According to data provided by Roland Berger, it can be seen from the merger and acquisition cases of some Chinese companies in the past three years that the independent enterprises not only acquired some core technologies, but also gained some access to foreign automakers. Channels, and improve the management level in production and management.
After making proposals for the development of a series of parts and components companies including international mergers and acquisitions, Xu Changming specifically reminded the domestic parts and components companies that they must steadily build quality. This is a basic premise. If this is not possible, it would be useless to suggest any suggestions. .
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