China's Spare Parts industry has caused European and American companies to love and hate. The European and American countries are picking up big sticks and threatening to complain to the WTO about China’s existence of spare parts trade protection policies. The other hand is also buying large parts of China’s spare parts. In order to use the cost advantage of Chinese companies to reduce their costs.
Volkswagen General Increases "China Purchasing"
In recent years, purchases of parts and components by international auto giants such as Volkswagen and General Motors have continued to increase.
The relevant person of Volkswagen revealed yesterday that by the end of this year, Volkswagen will purchase 1 billion U.S. dollars worth of parts and components from China, including a larger proportion of export parts. As a result, the import volume of parts and components of Volkswagen in China will increase by 400 years in 3 years. %.
It is reported that Volkswagen's global procurement of parts and components is being carried out in regions where parts and components industries are concentrated, such as Jiangsu, Zhejiang and Changchun. Once an agreement is reached, a large number of parts and components will be exported to the locations of Germany and other Volkswagen automotive subsidiaries.
At the same time, General Motors has also increased its purchase of parts and components in China. Yesterday, relevant persons of Shanghai General Motors stated that the share of Shanghai GM’s foreign suppliers has been declining. At present, the number of domestic suppliers has reached more than 200, including wholly-owned, wholly-owned, state-owned, private, and other types of enterprises, accounting for the total purchases More than 70%, while only 100 foreign countries, only about 30% of the total.
Domestic parts enter the global horizon
A large number of domestic auto parts manufacturers are entering the parts procurement system of multinational car dealers. According to Binzhou Piston, the leading company in the heavy-duty piston industry, Binzhou's piston products have begun to enter the global vehicle manufacturers, such as GM, Ford, and Daimlersler, and their export prospects are promising.
Relevant statistics show that last year, the sales revenue of China's auto parts manufacturing industry exceeded 500 billion yuan, a year-on-year increase of 18.67%. The export value of auto parts was as high as 15.235 billion U.S. dollars, an increase of 75.11% year-on-year, and export revenue accounted for 25% of sales revenue.
The industry predicts that by 2007, the purchase price of spare parts for the world’s auto giants in low-cost countries will reach US$50 billion, of which 70% will come from China.
Cost Advantage Brings Up Market Rise
In the mid-to-low-end parts and components market, China's spare parts manufacturers enter the global market with the same cost advantages as "lighters."
A foreign car dealer stated that “we increase the proportion of parts and components purchased in China, mainly due to cost considerations. In the Chinese parts industry, automotive metal parts, automotive chemical parts and electronic products have reached international standards, but their costs It is often 30%-50% cheaper than similar foreign products."
The car dealer stated that the procurement of parts and components for multinational corporations is often subject to tendering. Chinese companies are often seen in the global tendering activities of Volkswagen, General Motors and Ford Motors.
Since the company has formed a large-scale production capacity and has broken through technology and quality barriers, the competitive advantages of Chinese-made parts and components have become apparent. Taking a plastic piece on the door as an example, the purchase price in the U.S. market is 10 dollars per U.S. dollar, while the domestic counterparty manufacturers can do 5 to 6 U.S. dollars. In fact, Delphi, Bosch, and other cross-border component companies are investing more in China to reduce costs.
European and American car dealers take pressure while purchasing
Analysts in the industry said that Europe and the United States have a very complex mentality and love and hate for China's parts and components industry. Obviously, European and American companies do not want China to have perfect auto supporting capabilities. Therefore, they hope that China will cancel the "Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of Complete Vehicles." Many multinational companies can use the domestic components to assemble and manufacture as they used to avoid The purpose of tariffs and low-price competition. On the other hand, they saw that China's auto industry has become more and more mature, parts and components have gradually reached the international level, and the advantages of low-cost are obvious. Purchasing in China has become a realistic choice for multinational companies.
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