The parts industry is the basis for the development of the automotive industry. Without a strong automotive parts industry, there can be no strong automobile industry. After China's accession to the WTO, China's auto industry will be strongly impacted. Auto parts manufacturers will suffer even greater impacts after they join the WTO. Given the importance of the auto parts industry and the level of development of the industry that lags behind the overall level of the auto industry, we should pay more attention to the development of auto parts industry.
I. Analysis of China's auto parts industry development
(I) The development stage of China's auto parts industry
1. The first phase of the Rising Period was after the founding of New China in 1978. The main feature of this period was the development of components driven by vehicles. In 1956, the first automobile manufacturing plant was established. Later, Nanjing Automobile Manufacturing Plant, Shaanxi Automobile Manufacturing Plant and the Second Automobile Manufacturing Plant were successively established and ushered in China's first "car fever". During this period, a number of auto parts factories have also been established one after another for supporting the vehicle manufacturers. However, at that time, the vast majority of parts and components companies had very low levels of production, small scale of production, and no capacity for product development and renewal. As a result, parts and components companies had poor product quality and high prices, and they were only able to support the specified manufacturers. Sales to other vehicle companies.
2. The second phase of the wave phase was from 1978 to the mid-1990s. The main feature of the development of parts and components in this period is still focusing on supporting the entire vehicle. In the mid to late 1980s, with the rapid development of the national economy, the seller’s market emerged, the country laid out the “three major, three small, and two micro†production patterns, and decided to build the automobile industry into a pillar industry of the national economy, which ushered in. China's second "car fever". The situation of supply shortage and the development prospects of pillar industries have attracted local governments to invest in the production of auto parts and components, and a large number of small and medium-sized component companies have emerged. These enterprises are small in scale, with more than 80% of their sales being less than 100 million yuan; serious redundant construction; a large number; 2,000 fixed-point parts manufacturers nationwide, actually reaching 5,000; weak technical forces; and poor production equipment. Exclusivity of procurement rules forces some parts companies to survive in an OEM.
3. The third phase of the transition phase was the mid-1990s to the present. The main features of this period were the development of components and technical level. In the past decade, China's auto parts industry has made great progress in terms of production capacity and product variety, as well as management and technical level and technological innovation capability. This is mainly reflected in the following aspects: First, under the encouragement of a series of preferential policies, a group of "little giants" producing spare parts emerged. At the same time, foreign parts and components companies quickly entered the automotive market in China. Delphi, the world’s largest auto parts manufacturer, has invested more than US$250 million in China and established 10 joint ventures, one sole proprietorship and nine joint ventures. Second, China's spare parts product quality and technical level have greatly improved. At present, a number of parts and components companies have basically formed independent development capabilities, and key spare parts enterprises have basically had the ability to develop in tandem with the entire vehicle. Third, the guiding principles of the “best procurement principles†have already been reflected in the operating practices of some vehicle companies. For example, when Anhui Chery Automobile Co., Ltd. developed and produced Chery brand cars, it implemented global procurement, which enabled the vehicle to pass all the requirements of the national six-category mandatory inspection standards at one time, and the vehicle exhaust emissions reached the European Standard I. Fourth, to reduce the rate of autonomy of parts and components and to strip out the production of parts and components affiliated to automakers. Fifth, through introducing, digesting, absorbing, and innovating, companies are also drawing attention to foreign advanced management methods while introducing foreign hardware and software technologies.
(II) Development Mode of China's Auto Parts Industry
(1) Structure of development model From the perspective of the growth process of China's spare parts industry, the parts and components industry has basically formed an "attachment-based" development model based on complete vehicle support. The structure of this model is a ring-shaped frame that surrounds the entire vehicle company and multi-layered parts companies. Its shape is similar to an arrow target: the bull's-eye is the vehicle production enterprise; the second ring is the core component company; The third ring is a backbone component company; the fourth ring is a collaborative enterprise.
(2) Features of the development model 1 The government's strong support. The national and local governments attach great importance to the localization of parts and components, and provide support in rationalizing relations and resource allocation.
2 The relationship between the entire zero-based relationship between the main relationship. The relationship between OEMs and parts and components is reflected in the requirements and guidance of the OEMs on the management and technical aspects of the parts factories;
3 The technical level is not high. The focus of the parts factory's work is to carefully digest the drawings, learn the production processes and technologies required for supporting the entire vehicle, that is, engage in import substitution, shorten the localization cycle, and stabilize the quality and reduce costs after mastering the production process;
4 Technology is more competitive than joint ventures. China's parts and components companies generally use the "market-for-technology" approach to attract foreign investors and China, such as Shanghai Natiefu Driveshaft Co., Ltd., Shanghai Yichu General Machinery Co., Ltd., United Automotive Electronics Co., Ltd., etc.;
5 Regionality is very obvious. According to statistics from the China Association of Automobile Manufacturers in 2000, the top six parts and components sales were Shanghai, Zhejiang, Jiangsu, Hubei, Chongqing and Liaoning. 6 provinces and cities combined for 406,045 million yuan accounted for 59.03% of all spare parts sales. It is not difficult to see that these provinces and cities are the seats of several major automobile manufacturers in China, and the parts and components supporting enterprises of major auto companies are basically in the province.
(III) Development Status of China's Spare Parts Industry
After more than half a century of development, China's auto parts industry has made considerable progress. However, when we study and analyze the status quo of China's auto parts industry, we should place it in a globally open market, and we must pay attention to the gap with the foreign auto parts industry.
(1) Industrial concentration degree There are many specific methods and corresponding indicators for measuring concentration degree. Here, the absolute concentration (CRN) and the Havendale index (HHI) are used as indexes for measuring market concentration, as shown in the table.
Country China USA Japan Korea
CR3 43.1 98.9 63.1 97.1
HHI 902 3676 1771 3435
As can be seen from the table, the market concentration of China's auto industry is much lower than that of foreign countries. Since most of China’s auto parts companies are equipped with auto OEMs and their systems are self-contained, the auto parts industry’s concentration is obviously not higher than that of the entire vehicle industry. This makes auto parts industry organizations inefficient. Intra-industry vendors are in a state of disorderly competition.
(2) Order of market competition <br> Due to the impact of the planned economic system in China, local governments are keen to make the automotive industry a pillar industry and provide a strong umbrella for local automobile manufacturers. In this way, a unified national market should have been forcibly divided into a single local market, causing confusion in the market order of China's auto parts industry.
(3) The concept of business management <br> The gap in business concept is the biggest problem in the operation of domestic parts and components companies. It has directly led to the unreasonable layout of parts and components industry and poor product versatility, making it difficult to integrate parts and components industries. The comparative advantage of domestic parts and components companies affiliated with the auto group and no prior market support for product competition has finally reflected defects such as internal support and local protection, which are inconsistent with the principle of global procurement and merit selection of foreign auto parts industries.
(4) Production scale of the company <br> From a global perspective, China's auto parts manufacturers are small in size, far from achieving economies of scale, and they have repeated economies and their own systems have become more serious. For example, there are 34 piston factories, 13 carburetors, 28 car lamp plants, and 34 wheel rim factories.
(5) Professional production level of enterprises <br> Most of the spare parts enterprises have low professional production levels, and there is no series or series of product development lags. The overall technical level is not high, and the strong-strength parts and components enterprises can only meet the host manufacturers. The minimum technical requirements. In the process of localizing the car projects introduced by several domestic steam companies, due to weak product technology development capabilities, the independent development system has not yet formed, making it difficult for us to catch up with the world's advanced component manufacturing technology in the short term. .
(6) Corporate investment efforts <br> Each year, China's enterprises use limited funds for after-tax profits for technological transformation, product development, and basic research. This, coupled with limited state investment, results in insufficient investment in the entire industry. The proportion of investment in the component industry is also unreasonable. The ratio of investment in auto parts and vehicles in Japan and Europe and the United States generally exceeds 1:1, even 3:1. The proportion of investment in spare parts and vehicles for the automotive industry in China is 0.35:1 during the Ninth Five-Year Plan period. The annual R&D expenditures of some European and American parts manufacturers account for about 5% of sales, and Japan is about 6%. With huge capital investment, they established a complete technology research center and formed a strong research and development capability. The gap between China and the developed countries in this regard is still further widening
Second, China's auto parts industry development trend analysis
(I) Simultaneous development of parts and components industry and automobile industry <br> The process of developing auto parts and components industry in major auto-producing countries in the world shows that the parts and components industry and the automobile industry are basically developing simultaneously. The United States and Europe spare parts industry is still ahead of the auto industry, Japan, South Korea auto parts industry lags behind the auto industry, but after taking measures, it catches up. China’s experience has also shown that if a vehicle manufacturer is built, if parts and components cannot be manufactured, they cannot guarantee the supply of spare parts in time, and the entire vehicle factory will be unable to play a role. If a large number of parts and components are imported over a long period of time, not only will it cost a lot of foreign exchange, but it will also be difficult for the auto industry to be in a strong position. Therefore, we must not only focus on the development of vehicle production, and neglect the production of parts and components. We need to place parts and components in an equally important position in order to make the parts industry and the automotive industry develop simultaneously.
(B) Industrial restructuring through mergers, mergers, acquisitions, etc. <br> In recent years , mergers and acquisitions of auto parts companies have become prevalent, such as the German company Bosch, Europe's largest auto parts company, 1996 It also merged with the anti-lock brake division of the joint venture company and further expanded its scale to reach more than US$10 billion in total sales. In China, the automotive industry is one of the most significant economies of scale. In order to deal with the problem of scattered, chaotic and poor economic returns of the parts and components industry, we must take advantage of the strength of the market economy and make full use of economies of scale. At the same time, it also depends on the country to formulate more perfect and more operational policies and regulations to promote the development of outstanding enterprises, limit the survival of poor enterprises, and standardize the competition order in the parts and components industry market. Under the guidance of the country’s macroeconomic policies, we will selectively support key components and parts companies that have considerable scale and have certain strengths in products and technologies. Through asset allocation, mergers, equity participation, and controlling, we will form alliances with other enterprises with certain advantages. Parts and large enterprise groups will increase the economies of scale and overall strength of the parts and components industry.
(III) The independence and divestment between parts companies and vehicle companies <br> The entire vehicle company pursuing global procurement of the required parts and components, and whoever buys the products with good quality and low prices, it is not necessary to stick to it. Application of the original company of the group.
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