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A few days ago, the reporter learned from the 2003 China International Auto Parts Import and Export Trade Exhibition that: In the next 3 to 4 years, the total amount of purchase plans for domestic auto parts will reach 30 billion to 50 billion U.S. dollars for the world’s automotive multinational corporations and retail markets. . In the face of such tantalizing cakes, Shanghai Automotive Industry Development Co., Ltd., which has developed for almost 20 years, will be released.
Huge market
“The localization process of the automobile manufacturing industry in China will inevitably bring more opportunities for the parts and components companies, and a large number of KD parts will depend on imports. In fact, it is also testing the cost and significance of foreign investment in China for localization.†Shanghai Auto Parts Association An official said in an interview with reporters.
Nowadays, with the lack of global auto demand, there is increasing pressure to reduce costs and competition between auto giants, and the manufacturing level and competitiveness of auto parts companies in China have been continuously improved in the past 10 years, plus China. Other industries such as electronics have become one of the global manufacturing bases, which has led the giants of the automotive industry to shift their attention to China.
Ford is an example of this. In May 2002, Ford set up a China Procurement Center in Shanghai. Now Ford’s huge procurement research team has traveled back and forth between major auto parts manufacturers in China. It is currently undergoing new procurement. "Ford Motor Company is expected to purchase one billion U.S. dollars worth of parts and components in China this year for the company's markets in Europe and North America. If it goes well, the number of purchases in China in 2005 could reach 10 billion U.S. dollars." Ford China Vice President Xu Guojun to the media Introduced the procurement plan of the Shanghai Purchasing Center.
Not only Ford, but two other giants in the United States, General Motors and Ford, have been urging their Tier 1 parts suppliers to either invest in China or buy directly from Chinese companies.
“The reason why more and more international auto parts purchasers have locked the procurement market in China is because of the rapid development of the Chinese auto market and the auto industry, and domestic auto parts manufacturing through international quality standards such as QS9000, VDA6.1 and other European and American markets. The number of businesses has greatly increased.†Mr. Ge, a member of Shanghai Pudong Automotive Industry Corporation, said in an interview with this reporter.
Another one that cannot be ignored is the domestic market. According to statistics, by the end of 2002, the number of vehicles in China had already approached 20 million vehicles, and the demand for automotive aftermarket parts and components had reached 70 billion yuan, of which about 20% were imported pieces. It is expected that China’s auto output will exceed 4 million this year. About 70% of parts and components are to be purchased domestically.
New business opportunities
"China's auto parts suppliers are now facing unprecedented market opportunities," said Chen Wenkai, a consultant from Yuan Zhuo.
But Chen Hai, deputy general manager of Auto Parts Business Network, interviewed the reporter: “At present, nearly 70% of domestic parts suppliers lack international competitiveness, especially some key high-tech technologies such as airbags, electronic fuel injection systems, and ABS. Integrated product."
In front of it is still a team of multinational companies. According to incomplete statistics, there are nearly 500 parts and components companies that foreign investors have invested in China. Most of the world’s leading auto parts companies have established joint ventures or wholly-owned enterprises in China. In 2002, the total sales of the domestic auto parts industry was 75 billion yuan. Among them, multinational companies entering China's spare parts industry, such as Delphi of the United States, Denso of Japan, and three world-class component giants of Bosch of Germany, accounted for 14% of the market share in China.
Among the multinational companies that compete in the Chinese auto parts market, Japan’s auto parts companies have the greatest ambitions. Japan’s auto parts companies have invested in more than 130 companies in China.
For the domestic auto parts industry, some experts commented: “The parts and components industry is a relatively weak link in the Chinese auto industry, but it is also the most promising part that has global influence.†In fact, although the strength of Chinese auto parts companies is slow, they are also Gradually increase. Statistics show that the export volume of base parts, rubber and plastic parts, and testing equipment is increasing year by year among more than 1,400 auto parts companies, and the intensive degree is also increasing. According to relevant information, about one-third of China's spare parts suppliers account for two-thirds of the parts market.
For Shanghai products, Chen Hai said: "At present, Shanghai's spare parts industry is small, scattered, disorderly, and disorderly. To achieve development, we must enhance the overall competitiveness of the industry. "But there is still a lot of competition in individual parts and components. Advantage. Such as Shanghai's production of seats, bumpers, wire harnesses, aluminum wheels, glass, brake pads, clutches, radiators, muffler, universal joints and so on. â€
Chen Hai predicts that by 2005, there will be 5-10 large-scale auto parts and auto parts companies that have become internationally competitive. The top three parts of the key components have a domestic market share of 70%, and the auto parts export value accounts for their total sales. 20% of the amount.
Shanghai's hope
In mid-November 2003, when a deputy minister of the Ministry of Commerce visited Shanghai's auto parts industry, he said: “The annual auto parts procurement volume in the auto industry is US$250 billion. How much can China get? How much can Shanghai get? â€
As a relatively mature area where the Chinese auto industry is developing, the pressure Shanghai is experiencing is not just official. Against such a backdrop, Shanghai has started to build Shanghai International Automobile City’s “Global Parts Purchase Platformâ€. It is hoped that a multinational procurement center will be initially established within 5 to 10 years, relying on the manufacturing capabilities of the Yangtze River Delta, and “connecting†with the global supply chain.
"Actually, 'Made in Shanghai' has long started to provide accessories for foreign cars, and even parts are critical," Mr. Ge told reporters. Such as Shanghai Xiaolan headlights company installed for the United States top Cadillac cars, "big eyes"; from the sea to the European automobile factory in many models of the seat parts; in November 2003, Shanghai General Power Plant V6, 3. The four-liter engine will be shipped to Canada and will be assembled next year on the new Chevrolet compact SUV model from Kemi. These examples show that Shanghai companies are gradually integrating into the component matching system of multinational companies.
However, the overall situation is: “On the low-end products, there is still a market for parts and components companies in Shanghai.†Qian Mingen, secretary general of the Shanghai Automobile Industry Association, said, “Because the market always has different levels of low, medium and high, but Enterprises that do not have a brand will eventually lose out,†Qian said, “85% of Shanghai's spare parts companies are joint ventures, state-owned parts and components companies account for less than 5%, and private enterprises account for 15%. Shanghai’s parts and components companies’ products % can be incorporated into the multinational giant procurement system."
Money is optimistic about private enterprises. He said: "The private enterprise's market mechanism is flexible. For example, Wanxiang Group's acquisition of a company in the United States, and then the completion of China's complete vehicle package, is also a development path. Unfortunately, such a company is too small."
When the SAIC Group people talked about this issue, they seemed confident. "Every parts and components company of SAIC Group has the ability to join the ranks of global procurement, and we can account for more than 50% of the foreign procurement from 30 billion U.S. dollars to 50 billion U.S. dollars," said Zhang Tingen of the SAIC Office of SAIC Motor. “Our advantage lies mainly in talents. As for other things, we don’t need to say more.†Zhang Tingen also believes that the glass, wheels, and seats produced by Shanghai's parts and components companies are also highly competitive internationally and have added value. It is also true that the ever-increasing export volume of parts and components, rubber and plastic parts, and testing equipment can explain the problem.
The SAIC Group, one of the 20 major group pilot units supported by the country, has successively established joint ventures with auto group companies in Germany, the United States, Japan, the United Kingdom, France, and Italy, and established 58 joint ventures. These joint ventures have become the new economic growth point for the Shanghai Automotive Industry. In fact, after 18 years of rolling development, Shanghai Automotive Industry has taken the lead in China, basically forming a relatively complete vehicle and component manufacturing and development system.
"These companies (Shanghai Yanfeng Johnson, Natiefu, and Shanghai Xiaoxuan lights) are all subsidiaries of SAIC, either state-owned enterprises or Sino-foreign joint ventures," said Xue Hao, a spokesperson for the SAIC Group office.
However, the shortcomings in Shanghai are still very obvious. Some experts said: “In terms of key assembly components, Shanghai companies do not have the ability to independently develop and support the most valuable orders we cannot afford.†Obviously, China's spare parts industry costs The advantages do not conceal the weaknesses in the development capabilities of parts and components. Qian Minggen also said: "Partnership companies with joint ventures do not have the technology developed independently."