· China's domestic auto parts companies are suffering from the enemy

Since the outbreak of the global financial crisis, Sino-US trade frictions have followed. Chinese steel products, coated paper, seamless steel tubes, solar products, etc. are all involved, and the automotive industry is also unable to escape bad luck. From the tire special protection case in 2009 to the recent “double-reverse” investigation of steel wheels, Sino-US trade friction has had a major impact on China's auto parts industry.

On March 19, 2012, more than 180 members of the US Congress collectively appealed to President Obama, “Because China’s auto parts have hit the US market and the US-China trade deficit has intensified in this area,” the US government is proposed to take Chinese parts. Strict countermeasures. In contrast to the Chinese market, major multinational component companies, including the United States, have eroded more than 70% of China's market share. Among them, the US parts and components enterprises have obvious advantages in the powertrain system and engine market with high technical content. In the face of fierce competition in the local market and the increasingly harsh international trade environment, where will China's auto parts industry go?

Frequent trade friction in auto parts

According to overseas media reports, 188 US lawmakers claimed on Friday that China has implemented a number of policies to create unequal trade advantages for auto parts manufacturers, including restricting the import of overseas auto parts and subsidizing local auto parts. Etc. "These strategies have worked. China's auto parts exports have grown rapidly, increasing by about 900% since 2000." This "amazing" data comes from the American Manufacturing Alliance. The industry organization founded in 2007, together with organizations such as the American Iron and Steel Federation, continues to promote US trade sanctions against the Chinese auto parts industry. The first thing that broke out was the "Tire Special Protection Case." In June 2009, the US International Trade Commission imposed additional ad valorem tariffs on Chinese passenger cars and light truck tires for three consecutive years on the grounds that Chinese tires disrupted the US market. Subsequently, the US “double anti-counterfeiting” (anti-dumping, countervailing) investigation into China’s export of US steel wheels was launched, and in March 2011, when Chinese steel wheel manufacturers or exporters sold steel wheels in the United States. There are dumping and export subsidies.

At the end of January 2012, the American Manufacturing Alliance and the trade union released a report saying that the US auto industry has lost 400,000 jobs since 2000, and if China does not stop illegal trade, there are 1.6 million US auto parts and accessories. The work is threatened. It is this report that has triggered a "strong" resonance between the two parties in the United States. "The US sanctions against Chinese parts and components have indeed had a great impact on our exports." Chen Kangren, president of China Auto Parts Industry Corporation, said frankly, "The price of our export products has been very low for a long time, plus the RMB exchange rate. Rising, the export environment is bad, and profits are close to freezing point. If sanctions are imposed, the difficulty of developing trade with the United States will be further increased."

Foreign-funded enterprises are profitable in China

Different from the foreign complaints, foreign auto parts dealers are in the Chinese market, which not only account for most of the market share, but also increase sales and profit margins. According to data released by relevant departments, as of the beginning of 2010, foreign-funded parts and components enterprises have already occupied more than 75% of the Chinese market. The number of foreign-funded parts and components enterprises in China has reached 1,200, and more than 70% of the world's top 100 auto parts companies have started trade in China. Among them, the US parts companies in China performed outstandingly. Multinational companies such as Delphi, BorgWarner, Johnson Controls, and Cummins have established joint venture factories in China to gradually increase their market share in China. China's auto parts companies are losing ground in the market.

It is understood that in Delphi's most advantageous powertrain field, its market share in China has ranked second in the country; from the perspective of vehicle support, the market share is the first in the country. The market share of the 500-horsepower diesel engine produced by the joint venture company Dongfeng Cummins has also ranked first in the country. With the rapid increase in market share, the Chinese market has also become an important growth point for the profits of US multinational component giants. According to data released by Delphi, the company's sales in the Asia Pacific region in 2010 was 3 billion US dollars, of which 2 billion US dollars came from China; in 2011, its development in China was rapid, and sales increased by 21%. Aberdeen, president of Delphi Asia Pacific and president of China, said in an interview that the Asia-Pacific sales share will account for one-third of Delphi's total sales, and China will become the region with the largest increase. Another engine manufacturing giant, Cummins, is not inferior. Fourteen of Cummins' 23 engine series have been produced locally in China, and four joint venture factories have been established. In 2011, Cummins’ sales in China exceeded $3.7 billion, and China has become the world's largest and fastest growing market.

Local companies urgently need mergers and acquisitions

Compared with the scenery of foreign-funded parts and components enterprises, China's auto parts have been forced to retreat to the edge of the industry in both the international market and the domestic market. The reason is that Zhang Xiaoyu, vice president of the China Machinery Industry Federation, believes that "the international environment is only one aspect. In the final analysis, China's export parts are less competitive, the technology content is low, and the added value of products is too small." According to relevant data, 2011 From January to November, the total trade volume of China's auto parts industry was US$66.043 billion, of which exports were US$41.052 billion, imports were US$24.90 billion, and trade surplus was US$16.62 billion. In terms of export volume, the largest proportion of the driving system components, accounting for 42.28% of the total imports, and the total export of tires accounted for 67.7% of the total exports. At the same time, from the perspective of export enterprises, the total export volume of foreign-owned and joint ventures currently accounts for only 30% of China's total exports of parts and components, but exports account for 70%.

"The technical content of the products is very low, the profit rate is low, the channels are chaotic, and the technical standards are low. These are all issues that need to be solved in the Chinese auto parts industry." Chen Kangren told reporters. He suggested that "in the face of the dilemma, China's auto parts industry wants to survive in the cracks, strengthen brand awareness, and adjust the industrial structure should be the best way out." However, the current backbone of China's general parts and components has 200 There are many, small and medium-sized enterprises. Lack of promotion of specific policies, who will lead these companies to carry out integration work? This is a stumbling block that hinders the component industry from becoming bigger and stronger.

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