At the time of the advent of mergers and acquisitions of vehicle companies, Chinese auto parts companies are also faced with a process of reshuffle. Among them, the domestic parts and components companies will come up with two different paths: Some parts companies that are closely integrated with the main engine plant will grow with the acquisition and merger of the main plant, and another part of the company will grow into an independent supplier of system-level parts and components. . It is imperative to integrate and reorganize The composition of the auto parts market consists of three major blocks: complete vehicle support, after-sales and export, with the highest proportion of complete vehicles. In the past five years, the rapid development of the vehicle market has driven the high growth of parts and components companies. After rapid development of China's auto parts industry, it has many features such as a large number of manufacturers, fierce market competition, a high degree of internationalization, and complex technology sources. According to statistics, the market share of the top 100 companies in the domestic spare parts industry accounts for only 50% of the entire industry, far lower than the concentration of other countries (regions). Although the overall income of the parts and components industry reached 837 billion yuan last year, 80% of the above-scale enterprises have sales revenue of less than 100 million yuan. Only 43% of the parts and components companies in the industry own patents, and less than 20% of the companies have patents for inventions. It is worth noting that in recent years, overseas auto parts giants have entered China through joint ventures and cooperation. Delphi, Wescast, Cummins and many other foreign auto parts manufacturers have already built dozens of production bases and branch offices in China. Up to now, foreign auto parts have already had a 3/4 share of the Chinese market, and some core parts have even reached more than 90%. The ever-increasing price war in the vehicle market is also eroding the profitability of the parts and components industry. Just as the research report released by Alixpartners, a global automobile industry consulting expert, pointed out, China's auto parts industry is facing the impact of increased costs and external competition. As a scale-dominated industry, although the scale of China's auto parts industry is large, it does not exert its scale effect. Therefore, the integration and reorganization of the auto parts industry is imperative. Both roads lead to "Rome" The final result of industry consolidation is the reduction in the number of companies and the rise of industry leaders. The entire vehicle industry is about to enter the era of mergers and reorganizations, which will be transmitted to parts supply companies. Moreover, from an internal point of view, excessive number of parts and components entrepreneurs is not conducive to a large-scale effect, and it is difficult to resolve the cost pressure caused by the decline in vehicle prices. Wang Qun, a researcher at Wealth Securities, believes that the ecosystem of auto parts is divided into three levels. The system supplier is the most closely related to the entire vehicle, followed by the automotive assembly/module supplier, and the most peripheral is the auto parts/components. Suppliers, the corresponding profit distribution from high to low. From the top four global auto parts giants, it can be seen that there are two main growth models. One is to rely on OEMs to support them. For example, Delphi is to GM. The advantage is that they can develop rapidly with the help of OEMs. It is also difficult to survive when the main plant is in a downturn; the other is a stand-alone system supplier represented by the German Bosch Group. At present, A-share listed auto parts companies can also be divided into two camps. The former is represented by Dongfeng Technology, FAW Fuwei and Qiming Information, and is attached to Dongfeng and FAW Group respectively; the latter is represented by Wanxiang Qianchao, Ningbo Huaxiang, Weichai Power, and Fuyao Glass. The above division does not mean that the latter companies are completely decoupled from the OEMs. In fact, in the process of the rise of emerging markets, the parts companies that are attached to the OEMs are growing faster. Ningbo Huaxiang passed the participation of the participating companies into the components supporting system of FAW Group. Weichai Power directly controlled the Shaanxi Automobile Group by absorbing and integrating the Hunan Torch. Only the latter type of companies are more competitive in the market and more in line with the country’s automotive strategy. Multifunctional Hoists,Hoist Weight Machine,Material Hoisting Equipment,Hoisting Equipment Machines Jiangsu Minnuo Group Co.,Ltd , https://www.jsminnuomachinery.com