Domestic manufacturers are struggling to reshuffle their accessories industry


As we all know, the auto parts industry is the foundation of the auto industry. The development of the vehicle industry has also driven the development of the auto parts industry. The entire vehicle industry and parts and components industry are mutually causal. At present, while some people in the country are trying hard to adjust the importance of the car industry, they have forgotten the basis of the parts and components industry. As a result, the level of China's auto parts industry has not kept up and has become a weakness in the development of the automobile industry. Due to the small scale of many auto parts companies in China and their inability to achieve economies of scale, auto parts companies are incapable of technological innovation, or because the development of new products is constrained by capital and technology, Chinese auto parts companies cannot be mass-produced. ability. While impeding its own development, it has also hindered the development of the entire automotive industry. The backward development of spare parts production is the fundamental reason for the difficulty in the development of auto parts in China. In addition, no matter whether it is the purchase of raw materials, the process control of work in progress, or the sales, distribution, and service of finished products, Chinese auto parts companies have not yet formed a large-scale cost advantage; in addition to the unreasonable product structure, many parts and components companies There is a serious excess of production capacity, a large number of assets are idle, and fixed costs increase. Since there is basically no investment in R&D costs, the total cost of direct procurement in China’s total cost of vehicles is generally higher than 60%, and some manufacturers even reach 80%. Therefore, the pressure of lowering vehicle prices will be directly passed on to parts suppliers. More than half of car price reductions come from the auto parts industry. From two dimensions, we analyze the impact of the pressure of the entire vehicle competition transfer on the parts and components industry. The overall efficiency of the industry. China's auto parts industry is still a labor-intensive industry. Although China has abundant cheap labor resources, its low management level offsets the low labor cost advantage in China. The gap between the average production efficiency of China's auto parts industry and the international advanced level is wider than that of the entire vehicle industry. Structural adjustment of the industry. The pressure of competition will likely lead to adjustments in the industry structure in three aspects: First, foreign-owned and Chinese-foreign joint ventures will occupy a higher market share. In addition to meeting the rapidly growing domestic demand for parts and components, they are also exporting to foreign OEM markets. The second is that the traditional model of internal procurement represented by the three major vehicle groups will gradually be broken, especially after the Chinese auto joint ventures will find the best suppliers nationwide. Thirdly, becoming an integrator and parts specialist is the two major development directions for domestic component suppliers. This will lead to a gradual and clear supply hierarchy for Chinese component suppliers. There will be neither integrated capability nor professional expertise. Faced with difficulties. Judging from the above three aspects of the trend of industrial restructuring, the auto parts industry will indeed face reshuffle, but this is certainly a gradual process of gradual development. Changes in the relationship between supply and demand will affect the speed of the process at any time. The difficult question now is, what kind of economic measures and management techniques will the government use to motivate the sound development of China's spare parts industry cluster? How can the princely separatist industrial structure and the Chinese-foreign collateral-style matching pattern break through? How will the KD tide after joining the WTO deal with it? It seems that the future of China's parts and components industry depends on the company's own hard work, but also depends on the government's effective macro guidance.

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Indeco Breaker Chisels

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