In October, the passenger car market in China ushered in a gratifying situation with sales volume picking up and self-owned brands rebounding strongly. The National Passenger Car Market Information Association said that the effect of domestically-funded car companies “striving to practice their internal strength” has initially appeared, and the most difficult period for domestic-funded car companies has passed.

However, the actual level of “internal strength” in the domestic auto industry is not optimistic, especially as the component parts of the vehicle core are relatively weak, and most of the independent auto parts enterprises still stay at the map processing and sample mapping stage. Board constraints, the domestic automotive industry development prospects worrying. Some experts have appealed that the parts and components industry should be raised to the level of the national strategy to be considered, through policies to guide and support, change the status quo of China's spare parts enterprises scattered, chaotic, backward technology.

As we all know, parts and components are the basis for the development of the automobile industry and directly restrict the development level of the vehicle. The vehicle manufacturer only completes the assembly and assembly. The position of parts supply in the automotive industry chain is very important. In fact, the profit rate of the parts and components industry is much higher than that of the entire vehicle industry, especially the core components.

However, due to the eagerness of the automotive industry as a whole, the status of “lightweight parts for heavy vehicles” has existed for a long time. According to the “China Automotive Industry Yearbook” statistics, from 1986 to 2009, the total investment of China’s auto industry was 759 billion yuan, of which the investment for complete vehicles was 509.3 billion yuan, while the spare parts investment was only over 200 billion yuan. The investment ratio of complete vehicles and parts is less than 1:0.4. In developed countries, the investment in parts and components is usually larger than the investment in the whole vehicle, and the investment ratio of complete vehicles and parts and components is 1:1.3 to 1:2. There are also surveys showing that at present, China's entire vehicle companies invest less than 1% of their spare parts.

Industrial policy also lacks guidance on the development of parts and components. Since the "Auto Industry Adjustment and Revitalization Plan" was launched in 2009, a number of policies have mainly adopted subsidies, such as halving the purchase tax on 1.6 liters and below of its displacement models, subsidy for automobile subsidy, energy-saving emission reduction models and new energy models. Relief and subsidies are mainly targeted at vehicle companies. And many policies are mostly emerged as emergency measures, and the withdrawal of policies after the completion of the rescue mission can easily lead to a strong counter-intuitive effect. The formulation and implementation of industrial policies lack continuity and forward-looking.

In fact, the domestic automobile industry has begun to taste the "bitter fruit" that overlooks the development of parts and components. According to statistics, the external dependence of Chinese brands on engines, transmissions, chassis, axles and suspensions, and many electronic configurations has resulted in 60% of the profits of the entire industry chain being loaded into the pockets of foreign companies, and the external dependence on core components is even higher. More than 90. In addition, advanced automobile companies have adopted large-scale protection for automobiles through patents. Even if Chinese companies have the ability to independently manufacture these parts, it is difficult to escape from foreign dependence.

Giants of foreign parts companies are rapidly accelerating the market in China. In early September, Honeywell established a turbocharger plant in Wuhan. On September 26th, Continental Group started production of three new production lines in Changchun. It mainly produces nitrogen oxide (NOx) sensors, high temperature sensors, and 6th generation canister cleaning solenoid valves. This is also the third investment project in China after Shanghai Jiading and Wuhu. On October 10, Delphi Pike Electric Systems Co., Ltd. Chongqing Branch officially launched, mainly supplying Changan Ford Mazda, Volvo and Jiangling Ford. Just one day later, on the 11th, Delphi's Yantai production base for diesel engine management system held a foundation.

According to the data, in 2010 Bosch China Automotive sales reached RMB 23.3 billion, and in 2011 it reached RMB 24.9 billion, a year-on-year increase of 7%, far higher than the overall growth rate of China's auto market in 2011. Dai Pengjie, vice president and general manager of Honeywell Transportation Systems China and India, predicts that in the next five years, the Chinese turbocharger market will double from 4 million units in 2011 to 8 million units in 2016.

At present, the contradiction between the “big but not strong” auto industry in China is increasingly salient. To change the role of the assembly base and become passive, it is only possible to increase the independent research and development efforts to speed up the “shortcomings” of spare parts, and in the gap. The relatively small area of ​​new energy vehicles strives to make a difference, strives to catch up with the international advanced level, and continuously narrows the gap. Only in this way, the automotive industry can usher in a bright future.


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