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China National Automotive Industry Consulting Committee Chen Guangzu in a recent interview with Science and Technology Daily reporter interviewed is the phrase: "The automobile industry is the basis for the development of parts and components, there is no strong parts industry, how to build the system's auto industry, auto power how can From talking about? "
High profits attract foreign investment
Statistics show that the total price of a car, and parts accounted for 60% and the remaining 40% of the manufacturer's vehicle assembly costs, marketing costs and profit. This is exactly the reason to expand the Chinese market, multinational companies to accelerate parts.
An unnamed industry analyst told reporters, in general, corporate profit margins are twice as parts OEMs, OEMs are relying on sales scale to reduce costs. And like Bosch and Shaanxi Fast and some other market segments in a monopolistic parts profit margins will be higher, even as high as 20%, parts of many listed companies have an average profit margin of about 10%.
"Many foreign parts enterprises to China and other emerging market development, primarily profit margins higher than in mature markets, but profit growth rate higher than the sales growth rate." The analyst said.
In recent years, foreign parts companies have cultivated or enable R & D centers in China. World Parts Accessories giant Delphi, Bosch, Continental and Denso, etc., are to develop low cost, cheap and use of strong products to attract independent brand car companies.
In the world's largest auto parts companies Bosch, for example, Bosch 2010 China sales of 23.3 billion yuan car business, grew 38% over the previous year. In 2011, Bosch invested 3.4 billion yuan to expand in China to strengthen the various business areas. In the past four years, Bosch in China reached 30% of the average market growth rate.
Commerce Department data show that foreign companies currently control parts of auto parts sales of most of the market share, domestic parts sales accounted for only 20% -25% of the entire industry, with foreign background auto parts manufacturers account for the entire industry more than 75%. In these foreign suppliers, 55 per cent-owned enterprises, joint ventures accounted for 45%.
And more without strong local parts enterprises
And foreign parts companies seek to enter the China market, in stark contrast to the high-spirited, local parts enterprises are still not able to open up the situation. At present, a little-known domestic auto parts company that only Chinese domain car and a few other Fuyao.
According to reports, at present, the domestic parts enterprises with a total number of 20,000, including auto parts enterprises above designated size of nearly 8000. "But the local parts enterprises generally weak R & D capabilities, product convergence, and low technology content, in particular the lack of core technology major car assembly and key components." Chen Guangzu said.
Statistics show that in the automobile industry in developed countries, the average investment component industry is generally 1.2-1.5 times the car companies, auto parts enterprises R & D capabilities ahead of the vehicle business. But China's auto parts industry currently average investment does not exceed 0.3%. Meanwhile, the Chinese auto parts enterprises average R & D investment accounted for only 1.4% of sales, far below the international average of 6.6%. Embarrassing is that local enterprises occupy the domestic parts market over 80%, while sales only owns 20%, and 90% concentrated in the low end.
Chen Guangzu For example, China's production of various filter companies have more than 3,000, there are still new plant into operation. However, let him chilling is that the "core component filter paper was 100% dependent on imports. Our ancestors once invented papermaking known around the world, not even now are producing paper does not come out, what did these sophisticated core people to study, but to engage in the homogenization of competition. "
In the industry's most concerned about the new energy automotive industry, has been placed by leaps and bounds hope local parts enterprises also failed to achieve a breakthrough. Since 2008, China began in the field of new energy vehicles more and more imported key components. Chen Guangzu gave a vivid example. Diaphragm between the positive and negative electrodes of lithium batteries is an important component, currently 100% dependent on imports, the earthquake in Japan last March, diaphragm production is affected, a direct result of a lot of battery production plant shutdown.
Can not "re-host light components" of the
"Now multinational companies have into supporting China's own brand car companies, with excellent price and integrated technology and other advantages, the low end of our original accessories will certainly be a tremendous impact." Chen Guangzu said.
The "vertical integration" famous BYD, for example, it had high-profile claims, "In addition to tires and glass, almost all of the parts can do it yourself." Its components supporting self-sufficiency rate of six or seven, however, is also the foreign parts enterprises reached a cooperation agreement.
Public information, BYD e6 vehicle braking systems, wipers, etc. provided by Bosch, the sound is Haman. One of the successful models of local brands Imperial EC7, its suppliers are all Bosch, Siemens, Delphi, Visteon, Swedish Autoliv and other international brands, not a Chinese auto parts brand.
Lethality foreign components reflected in its monopoly on the technology. In the auto ancillary modular background, once a part of the enterprise using accessories, parts must all use throughout the enterprise, other companies can not ancillary, which are upstream of the high-end technology products, domestic brands parts enterprises can not do at this point.
Well-known auto analyst Jia Xinguang pointed out that both administrations have been OEM or parts not pay attention, very few investments in parts and components. "Upon accession release component stocks than restrictions, there is no way to catch up."
Chen Guangzu more appeal: do not twist the concept of "re-host, light parts and components", as long as foreign low-cost strategy was continued in 2023, unable to follow up its own brand enterprises. After that, then foreign product upgrades, raise prices, and that time the domestic car companies will once again lose the right to speak.