Global Purchasing Brings Pressure to Auto Parts When "Yellow Sand Disperses"


2004 was the last year for the issuance of auto import quotas for China's accession to the WTO. In the global procurement situation, China's auto parts companies are facing greater pressure.
Rising raw material prices and falling product prices It is estimated that the profits of general parts and components companies will not exceed 10%. With the start of the car price war, many auto manufacturers have been putting pressure on the parts factory. The price of the parts will be squeezed like water, squeezed and squeezed. If you do not let the crowd squeeze, then well, you will not cooperate with you. Do not do it from someone. Contrary to this, some raw material prices have gone up again, causing auto parts makers to have a big headache. Although efforts have been made to increase management efforts and reduce production costs, they must be carried out under the premise of ensuring quality. Especially since the second half of last year, the prices of steel, fuel and freight have risen faster than you think. Such an ups and downs has weighed on the enterprise and it has become overwhelming.
Compared with overseas enterprises, technology started late in the Chinese auto industry, and capital accumulation was also insufficient. The operating system was constrained. Moreover, many parts manufacturers have been producing parts for imported assembly vehicles. They have been working for foreigners, and they are small in size. The relationship is unstable, R&D investment is low, product development capability is low, technology is low, and the added value is low. People are led by the nose and have no initiative or self-owned intellectual property rights. Therefore, it is in a very real world. In addition, the production of auto parts in China is still not on the scale, there is no grade, many companies have excess production capacity, a large number of fixed assets and equipment are outdated. Some develop new products and some develop new products without capital investment. These are real situations.
The vicious competition among various manufacturers seeks to survive in the cracks, some companies viciously and unscrupulously compete with each other, or for the purpose of coveting momentary interests at the expense of losing reputation to produce and sell counterfeit and shoddy products, or at the expense of Dora order. At the price of production costs, it was painful to sell. They did not know that this was counterproductive and that they were tied up. The entire market is very confusing and it is more likely to cause foreign auto parts dealers to take advantage of it. It is estimated that within two or three years, the auto parts industry will set off a wave of mergers and acquisitions, and some small companies may be merged.
It is true that China's auto parts demand market is huge. In 2003 alone, domestic cars reached 4.4 million vehicles. By 2010, the demand in the Chinese auto market will reach 10 million. For auto parts needs can be imagined. It is precisely because of the huge market, it is particularly eye-catching, many foreign companies sharpened, and some have already entered the country, and some are ready to enter the country. China's spare parts manufacturers, are you ready?
In response to the above situation, the following methods are mainly used to deal with: (1) Increase research investment and develop products with independent intellectual property rights. Sooner or later, the “wolf” is coming. Do not be afraid to come because the challenge is also an opportunity. It is necessary to seize the opportunity to cultivate talents and hone talents; (2) The government strengthens macroeconomic regulation and control, and vigorously implements policies and funds. Support auto parts companies. This point Shandong Province did very well. Not long ago, the Shandong Provincial People's Government authorized the Shandong Provincial Economic and Trade Commission to use official documents to call the relevant provincial units "to build Shandong Province into a strong automobile parts industry by 2010." , and give strong support from talents, funds, and policies to bring a good start to the nation; In addition, the Wuxi New District will build a new base for auto parts companies; Changxing and other places are also preparing to build the Yangtze River Delta automobile and parts production. Base; (3) Strengthen alliances with the industry and reduce vicious competition. A chopstick is easily broken. Everyone understands that ten pairs of chopsticks are firmly held together. Many companies are now stepping up their cooperation in this area in order to seek common prosperity and common development. (4) Establish a multi-channel marketing network and actively participate in the global procurement system of multinational auto parts companies; (5) Actively develop independent knowledge Property rights products. Without their own independent intellectual property rights, they will eventually be eliminated. Because of the low cost of labor in China, some developing countries have lower labor than China. With our own intellectual property rights, our products can only be put out. We can compete with them only for products imported from abroad.
"Thousands of oysters are hard-working and hard-working, and they have done their best to get rid of the yellow sand." Chinese auto parts companies must not be afraid of difficulties, dare to open up, and boldly seek, this road has a long way to go.


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