At present, China’s economy, including auto Parts And Components , is suffering from exchange rate wars and inflation issues. To solve these problems, we must “grasp both hands and both hands must be hard!” Not only must we improve our technological level to increase the added value of our products. To counter the problems of exchange rates and inflation, we must also focus on the future with a view to grasping the future trends of auto parts and making sure that they are confident. From the current perspective, the development of auto parts in China has the following four major trends:

1. International industrial transfer accelerated, and mergers and acquisitions were active.

At present, sales of most parts and components companies in China are relatively low. Compared with multinational giants with sales of up to 10 billion US dollars, the scale of China's spare parts companies is obviously small. Moreover, China’s manufacturing exports have always been known for their low prices. In order to effectively reduce production costs, large multinational companies have not only transferred large-scale production and manufacturing links to low-cost countries and regions, but also gradually extended their scope of research and development, design, and procurement. In terms of sales, sales and after-sales services, the scale of transfer is getting bigger and higher and the level is getting higher and higher.

In 2010, a number of multinational parts and components companies have already established plants in China through joint ventures and other channels. The most recent one was November 3, when ArvinMeritor of the United States made a strategy for localization in China. Their executive director of China JasonApter said: “We hope to use 5 years to account for 10% of global revenue in the Asia Pacific region. The proportion has been increased to 1/3.” In the future, the Asia Pacific region, especially the Chinese market, and the off-road vehicle business will become key areas for the development of ArvinMeritor.

In order for domestic parts and components companies to have a place in the future international market competition, the quickest way is through mergers and reorganizations to form large-scale component enterprise groups.

Xu Changming, director of the information resource development department of the National Information Center, believes that the merger and reorganization of parts and components companies is more urgent than the entire vehicle. If there are no large parts and components companies, the costs will not come and the quality won't go. The development of the entire industry will be extremely difficult. The domestic parts and components companies are small in scale, weak in strength, and lack of R&D capabilities. Under such circumstances, if the parts and components industry wants to develop rapidly, it must speed up mergers and reorganizations to form economies of scale.

2. Auto parts companies actively implement systematic development, modular manufacturing, and integrated supply, and the auto parts industry cluster development characteristics are obvious.

"From the perspective of the development of the auto parts industry in the world's major auto-producing countries, the development of auto parts industry clusters is in an equally important position with the development of the auto industry." Senior expert Chen Guangzu of the auto industry stated that if it develops, it will develop into an industrial cluster. It is a strategic choice for the development of auto parts industry. Vehicle companies use platform strategies for product development. Systematic development, modular manufacturing, and integrated supply have gradually become the development trend of the auto parts industry. At the same time, the clustering characteristics of the auto parts industry have become increasingly evident.

"From the perspective of the development of the auto parts industry in the world's major auto-producing countries, the development of auto parts industry clusters is in an equally important position with the development of the auto industry." Senior expert Chen Guangzu of the auto industry stated that if it develops, it will develop into an industrial cluster. It is a strategic choice for the development of auto parts industry.

3. Global procurement of parts and components will become a trend, but in the future, China will continue to focus on exports and internationalization.

With the changes in the organizational structure of the auto parts industry, more and more automakers will implement global procurement of parts and components. However, the huge manufacturing industry in China and the characteristics of high quality and low price are unlikely to change in the short term. Therefore, automobile parts and components will continue to be the theme of exports and internationalization in the near future.

At present, international buyers are increasingly rational and practical in China's procurement by selecting and cultivating potential core suppliers; increasing their own logistics integration; strengthening communication with foreign-funded factories in China; and increasing the latter's enthusiasm for exports; dispersing procurement destinations, Contrast with other emerging markets to determine the purchase location and other methods to promote the process of China's procurement.

We analyze that although international buyers are increasingly cautious about Chinese procurement, exports and internationalization will continue to be the main theme of China's domestic component manufacturers within the next decade. The main reasons are:

1) Auto parts are a global industry, and it is inevitable that Chinese suppliers will increase their awareness of the pace of international development. Some companies that have already begun to taste international procurement achievements have delivered very positive signals.

2) China's spare parts companies, especially suppliers of parts and components in the supporting market, are becoming more and more cruel in their competitive environment, and internationalization will be one of the major outlets for differentiation.

3) After rapid growth over the past few years, a considerable number of supporting manufacturers have reached a scale of more than 1 billion yuan, with a certain degree of international expansion of economic strength;

4) Foreign capital/joint ventures will also increase their export efforts so that China can truly become a manufacturing center and thus form a virtuous circle.

4. The development trend of new technologies for auto parts.

The development of new technologies for automobile parts presents the following major trends: The depth of development continues to deepen; the degree of generalization and standardization of parts and components has increased; the level of parts and electronics has increased; the level of intelligence has increased; the lightweighting of entire vehicles and parts has become a trend for future development; Environmental protection technology will become the commanding height of future industrial competition.

Dock Leveler

Loading Dock,Dock Leveler,Truck Lift Platform

Sunli Industry Equipment Co., Ltd. , http://www.dopro-rack.com

Posted on