Since 2013, many joint venture auto companies have accelerated the localization of auto parts represented by engines. At the same time, faced with more opportunities brought about by China's structural transformation, Visteon, Delphi, Valeo, Eaton, Faurecia and other top multinational auto parts giants have stated that China’s business will double in the future. Under this background, how domestic auto parts companies have grown up rapidly under the condition of “powerful forces†has become a top priority. Joint venture auto companies accelerate engine building capacity Xu Min, Dean of Automotive Engineering Research Institute of Shanghai Jiaotong University, said that there is still room for growth in the Chinese auto market. Judging from the global auto ownership, the United States has more than 800 cars owned by thousands of people. Germany, Japan, and France have a very high number of autos, and South Korea is making rapid progress. On the other hand, the number of 1,000-person vehicles in developed regions in eastern China is less than 200 vehicles, and the national average is less than 100 vehicles for thousands. Therefore, there is no problem in the development of China's auto market, and it will be a period of market development in the next 10 years or so before it will enter the saturation period like Europe and the United States. It is precisely because of the good prospects for the Chinese auto market, many joint venture auto companies have accelerated the pace of construction of auto parts supporting facilities represented by the engine. Experts said that a number of joint-venture auto companies have accelerated the construction of auto parts supporting facilities represented by engines, which can not only improve the product supply chain and truly support the entire vehicle company, but also reduce costs to achieve the localization of core components. In order to enhance the competitiveness of the product. This move will have an impact on self-owned brand auto companies and domestic parts and components companies. Multinational auto parts companies expand production capacity At the just-concluded Shanghai International Auto Show, French auto parts giant Valeo announced that it will expand its investment in China. By 2015, Valeo's sales in China are expected to double, and China will become Valeo’s largest overseas market. Since entering the Chinese market in 1994, Valeo has succeeded in catching a high-growth "bus" in the Chinese auto market. In 2012, Valeo Group's total global sales reached 11.8 billion euros, of which Valeo China sales exceeded 10 billion yuan, accounting for 10% of Valeo's sales, and the Chinese market accounted for 18%. Eton Vehicle Group, a US auto parts company, also announced at the Shanghai International Motor Show that it wants to expand its production capacity in China. Shang Erbing, general manager of Eaton Vehicle Group China, said that further expansion of production capacity will help achieve the growth goals of Eaton’s Chinese market. Eaton Vehicle Group will collaborate with domestic and foreign auto companies to develop technology solutions for the Chinese market. Eaton Vehicle Group's Shandong Jining Manufacturing Plant will expand its production capacity by two times to meet the growing demand for valve and valve actuation mechanism products and technologies in the Chinese market. Shandong Jining is an important base for Eaton in China. In 1993, Eaton entered the Chinese market and established the first manufacturing company in Jining. It is reported that the Jining plant expansion project was started this year and is expected to be officially put into operation in March 2014. The plant will provide valve and valve actuation mechanisms for passenger cars, light commercial vehicles, medium and heavy truck customers in the Chinese market. Experts said that long-term multinational auto parts companies that have long been engaged in the global automotive industry are accelerating investment and distribution in the Chinese market. They are mainly expecting high input to usher in high returns, indicating their confidence in the future Chinese auto market. Despite the slowdown in the growth of China's auto market and increasing pressure from competition, most multinational auto parts companies still believe that there is much room for development in the Chinese auto market. At the same time, multinational auto parts companies with technological, management, and brand advantages have benefited greatly from the technological upgrading of the auto parts industry in China, and their investment in the Chinese market is accelerating. Domestic auto parts enterprises should be self-reliant Automobile manufacturing is a manifestation of the country’s overall manufacturing level. The development of the auto parts industry plays an important role in the development of the entire automobile industry. Through in-depth cooperation with auto parts companies, vehicle companies can not only ensure the supply of auto parts, but also help improve the technical level and quality standards of auto parts companies. However, according to statistics, parts and components of foreign brands now account for 50% of China's auto parts market, and are in the dominant position in the mid-to-high end market, gaining more than 70% of profits, which is extremely important for the development of China's auto and parts industry. unfavorable. Xu Min believes that the reasons for this situation are as follows: First, domestic auto parts companies are in the status quo, and most auto parts enterprises in China are private enterprises. They do not see risks, and they are “small and secure†and unwilling to carry out technology and Investment in management will develop to high added value. Second, the company’s technological capabilities are limited. Overseas auto parts companies have very strong professional R&D teams, while domestic auto parts companies spend most of their energy on production and There is no strong technical capability in the sales process. Third, the government has always emphasized the support of vehicle companies and neglected the importance of the auto parts industry. The auto companies mostly buy multinational auto parts companies. Multinational auto parts companies have severely weighed on domestic auto parts companies. The well-known car commentator Jia Xinguang said that China's auto parts industry must have its own design, research and development and integration capabilities, and must also be the same as other industries to form a group scale advantages. Cultivating leading enterprises is the only way for China's auto parts industry to become bigger and stronger. Accelerating structural adjustment and realizing resource integration cannot be delayed. On the one hand, China’s auto parts enterprises should take mergers and acquisitions and joint ventures as the first measure to prevent the impact of multinational auto parts companies in order to ensure the stable market share of enterprises; on the other hand, they should strengthen independent research and development to increase production capacity and enhance the competitiveness of enterprises. Xu Min said that China's auto parts industry needs to be bigger and stronger, and it needs the government's relevant departments to pay great attention and support. In order to achieve industrial transformation and upgrading and to build a true automotive power, the Chinese government should shift the focus of attention from vehicle companies to auto parts companies, upgrade the research and development of core auto parts to the national strategic level, and focus on supporting innovation. Auto parts companies with good foundation and high management level are becoming bigger and stronger. Promote the integration of production, education and research, and establish channels for social resources to invest in auto parts companies. The government should promote the integration of domestic auto parts companies' resources and establish a strategic alliance relationship between vehicle companies and parts and components companies. At the same time, the relevant government departments should encourage the use of self-owned branded parts and components by the vehicle companies, and strengthen the communication and cooperation among the parts and components companies.
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