According to relevant media reports, after the Diaoyu Island incident broke out, Japanese auto parts companies headed by Japan Denso Group began to shift their investment centers to the Southeast Asian market, and reduced their investment in China. However, as Japanese auto parts companies reassessed the role of the Chinese market, the giants of European and American auto parts companies have turned their sights to the Chinese market and have rapidly invested.
First, the heavyweight European and American parts companies in the domestic flourishing
On September 26, the Continental Group held a ceremony to celebrate the three new production lines in Changchun. The new three production lines are used to produce nitrogen oxide (NOx) sensors, high temperature sensors, and 6th generation canister purge solenoid valves for the Sensors & Actuators business unit of the Powertrain System. It is understood that the completion of the Changchun plant is the third investment project in China after Shanghai Jiading and Wuhu. This proves the firm pace and determination of the mainland group's presence in China.
On October 10, Delphi Automotive Systems officially launched the Delphi Pike Electric Systems Co., Ltd. Chongqing branch of the Chongqing Automotive Harness Production Base, marking the further expansion of Delphi's layout in the western region. As a manufacturer specializing in automotive wire harnesses, Delphi Pike Chongqing will produce optimized automotive wiring harnesses, mainly for Changan Ford Mazda, Volvo and Jiangling Ford. Then, just one day later, on the 11th, the Delphi Automotive Systems held a grand foundation stone laying ceremony for the Yantai production base of the Delphi diesel engine management system in Yantai, Shandong Province. The initial investment in the production base is about 100 million U.S. dollars (approximately 643 million yuan) and production is planned to begin before the end of 2013. It will mainly produce high-precision diesel fuel injection system components.
Then, on November 5th, Bosch, one of the world’s largest auto parts manufacturers and a Fortune 500 company, moved its auto caliper manufacturing base in China, its headquarters and R&D center from Suzhou to Wuhan Development Zone. The project site area is 100 mu and it is constructed in two phases. One phase of 50 acres, an investment of 50 million US dollars, will be completed and put into production in June next year, with an annual output of 5 million calipers, annual sales income of 1.3 billion yuan.
It can thus be seen that both the expansion of production in China and the establishment of a new R&D center, the investment of multinational auto parts companies in the Chinese market has only increased. Fortunately, in addition to the influx of new funds and expansion of production bases, the increase in employment opportunities and the introduction of localized talents are closer to the needs of the Chinese market and contribute to the steady development of the Chinese auto industry.
Second, the reason why European and American companies overweight the Chinese market:
1, high input usher in high returns
Why multinational companies prefer the Chinese market? This stems from the high profits gained in China in recent years. According to foreign media reports, as early as 2010, European and American auto parts companies’ sales in China soared to 45%, totaling 2 billion euros, which is equivalent to half of their sales in Asia.
Taking a set of data on Bosch's revenue in China in the near future, it is not difficult to see the ambitions of European and American auto parts companies to invest in China.
The 2010 annual report shows that Bosch's sales in China's auto business reached 23.3 billion yuan. Among them, as the largest business department of Bosch in China, the automobile has created a sale miracle of 24.9 billion yuan in 2011, a year-on-year increase of 7%. This figure is much higher than the overall growth rate of China's auto market in 2011.
2. Looking forward to the future Chinese market
Although the growth rate of China's auto market has been slowing down and the pressure of competition has gradually increased, most European and American auto parts companies still believe that there is much room for development in China's auto market.
On October 11th this year, Mr. Abobin, president of Delphi Packard Electronics/Electrical Systems Division and president of Delphi Asia Pacific, said with confidence: “Chinese consumers are more willing to choose richer functions, higher safety, and lower emissions. As a result of the rapid growth in demand for advanced electronic/electrical architecture systems in the Chinese market, Delphi is constantly developing and producing compact and lightweight electronic/electrical architecture products for its customers.Two cars have been built in the western region. The wire harness production base ensures quick response to customer needs and provides localized support.†From this remarkably provocative presentation, it is not difficult to see that the words in the line incorporate expectations for the Chinese auto market and have already done enough to develop long-term business plans in China. Preparation.
Coincidentally, Dai Pengjie, vice president and general manager of Honeywell Transportation Systems China and India, also holds an optimistic attitude toward the Chinese auto market. He predicted that in the next five years, the Chinese turbocharger market will double from 4 million units in 2011 to 8 million units in 2016.
In summary, although the current international economic situation is still not clear, China's auto industry is also in a period of slow growth, the pressure of domestic new car inventory is increasing day by day, and the auto market environment is becoming increasingly deplorable. European and American auto parts companies are doing the opposite and accelerating. The pace of production and capital increase in China. It can be seen that China's auto market still has great attraction and development potential. As a domestic auto parts company and a complete vehicle company, it is necessary to build confidence, explore opportunities in the domestic market, prepare for strategic preparations, and improve the competitiveness of the company.
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