The development trend of the world auto parts industry 1. International industrial transfer accelerated, and mergers and acquisitions were active. Since the late 1990s, in order to effectively reduce production costs and open up new markets, auto parts companies have not only transferred large-scale production and manufacturing links to low-cost countries and regions, but have also gradually extended their scope of research and development, design, procurement and sales. After the after-sales service, the scale of transfer is getting bigger and higher and the level is higher and higher. At the same time, the adjustment of the relationship between the vehicle and the parts and components company broke the existing global supporting system and promoted the globalization of the automobile industry chain. In this context, mergers and acquisitions in the auto parts industry have become more active. 2. Auto parts companies actively implement systematic development, modular manufacturing, and integrated supply, and the auto parts industry cluster development characteristics are obvious. Vehicle companies use platform strategies for product development. Systematic development, modular manufacturing, and integrated supply have gradually become the development trend of the auto parts industry. At the same time, the clustering characteristics of the auto parts industry have become increasingly evident. 3. Global procurement of parts becomes a trend. With the changes in the organizational structure of the auto parts industry, more and more automakers will implement global procurement of parts and components. 4. The development trend of new technologies for auto parts. The development of new technologies for automobile parts presents the following major trends: The depth of development continues to deepen; the degree of generalization and standardization of parts and components has increased; the level of parts and electronics has increased; the level of intelligence has increased; the lightweighting of entire vehicles and parts has become a trend for future development; Environmental protection technology will become the commanding height of future industrial competition. China's auto parts industry's overall development status and opportunities 1. The overall industrial scale ranks in the forefront of the world. In 2007, there were more than 20,000 auto parts enterprises in China, of which 7580 were auto parts enterprises above designated size. The number of employed people reached 1.59 million in 2007, accounting for 60.7% of the employees in the automotive industry. In November 2008, it reached 1.75 million. The layout of China's auto parts industry centering on complete vehicle production has basically formed six major regions: Beijing-Tianjin-Hebei, Northeast China, Sichuan-Chongqing, Two-Lake, Yangtze River Delta and Pearl River Delta. In the six regions, the total vehicle output accounts for 72% of the country's total. The output value of parts and components accounts for 81.1% of the country's total. The number of parts and components companies accounts for 79.9% of the country's total, and employment accounts for 79.3% of the country's total. 2. Insufficient investment, the product is concentrated at the low end. The lack of long-term investment in the R&D of parts and components industry is a common problem for companies. Digestion, absorption, and innovation are major development methods for auto parts companies. At present, 90% of the market share and manufacturing capacity of domestic-funded parts and components enterprises are concentrated in low-end parts and components. In view of the development of the entire vehicle, the problem of extremely uneven development of the parts and components industry has become more prominent. 3. The development of multinational auto parts companies in China is strong. By the end of 2000, China's auto industry has established 825 foreign-invested companies with companies in more than 20 countries and regions. There are 645 foreign-funded enterprises investing in auto parts projects (accounting for 78.18% of the total number of foreign-invested enterprises in the auto industry), with a total investment of 10.554 billion US dollars (45.38% of the total investment of foreign-invested enterprises in the automotive industry). Companies with foreign backgrounds have a higher proportion of body parts and accessories, automotive electronics, and braking systems. 4. China's auto parts industry is controlled by foreign capital. (1) The core technologies are mainly controlled by wholly foreign-owned enterprises or joint ventures, and domestic-funded enterprises are hard to make major breakthroughs in key technologies. By 2007, there were a total of 1,318 foreign-invested enterprises in China's auto parts sector, of which 725 were wholly foreign-owned enterprises, accounting for 55%, and 593 Sino-foreign joint ventures, accounting for 45%. In the Sino-foreign joint ventures, 66% of the enterprises are controlled by foreign investors. (2) The rapid expansion of foreign capital has changed the structure of the industrial organization, and the dominant enterprises have been mostly controlled by joint ventures. According to statistics, from January to October 2008, the total output value of the auto parts industry was 783 billion yuan, 39.4% of which were held in the hands of more than 1,000 foreign-invested holding companies, and the average individual company's output value was 310 million yuan. While the average output value of more than 10,000 private parts and components companies is only 30 million yuan, the advantages and disadvantages are obvious. (3) The trend of foreign capital increase and sole proprietorship is obvious. Under the current economic situation, the trend of foreign capital increase and sole proprietorship is obvious, and foreign capital is accelerating the pace of its transfer to China. After China implemented the “Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of the Whole Vehicle†in 2005, the parts and components industry became the industry with the highest degree of openness and marketization, and multinational companies set off an investment boom in China. (4) The key technology market is almost monopolized by foreign companies. At present, monopolies have been formed in key engine technologies such as high pressure common rails. In addition, in the areas of automatic car transmissions, ABS anti-lock braking systems and automotive electronics technology, key technologies have also been controlled by foreign parties, and key components still rely on imports. There has been no breakthrough in domestic research. Along with foreign companies occupying a monopoly position in the field of assembly parts and high-end products, the position of foreign investment in the domestic auto parts market has become more prominent, and parts and components companies have been marginalized in the industry chain. 5. The impact of the introduction of localization technology on the formation of parts systems in China. The results of localization laid the foundation for the Chinese car industry, and also changed the backwardness of China's auto parts industry that was a difference of 30 years from abroad, resulting in a complete supporting system for Chinese car parts and the ability to produce the latest products that are simultaneously listed globally. At the same time, it has laid the foundation for the establishment of independent brands and has made historic contributions to the rapid development of China's automobile industry. 6. The reasons for the lagging development of the overall strength of China's auto parts. The reasons for the lagging development of the overall strength of China's auto parts are mainly due to the lack of overall strategy and specific measures for the development of parts and components; the incompatibility between R&D investment and demand market, and the inconsistency with the development of complete vehicle companies; vehicle and parts companies have not yet Formed a close strategic cooperation relationship and lacked a platform for the collaborative development of common technologies; the completed industrial clusters of parts and components did not form a specialized division of labor and joint development; and the upgrade of regulations and standards and technological upgrading were not coordinated with each other, which increased the difficulty of corporate technology research. . 7. The financial crisis has brought new development opportunities to China's auto parts industry. China’s total auto parts exports have grown steadily. Exports have accounted for 10% of global auto parts exports. Export destination countries are concentrated in developed countries, and export companies mostly have foreign capital backgrounds; economic scale, complete vehicle export packages, and becoming parts and components. The procurement base is still the basic motivation for the export of China's spare parts enterprises; general trade and feed processing trade are still the main export methods; the export product category is dominated by resources and labor-intensive products. Under the impact of the current global financial crisis and economic crisis, auto parts suppliers such as the United States, Germany, and Japan have successively gone bankrupt and reorganized, which will lead to a direct reduction in the number of suppliers of global auto parts. In addition, the United States and Europe have fallen in this financial crisis and are mostly small-scale component suppliers with relatively single products and markets, especially secondary and tertiary suppliers and aftermarket suppliers. As for the Chinese suppliers whose strength and market are diversified, it is undoubtedly an opportunity to enter the international market. Under the encouragement of the "Autonomous Core Components Autonomy" policy promoted by the National Automobile Industry Adjustment and Revitalization Plan, some enterprises have begun to regard the acquisition of overseas small and medium-sized high-quality auto parts enterprises with technical characteristics as the best route to obtain core technologies. Since 2009, some of China's powerful companies have started to acquire foreign parts companies.
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