The problem facing auto parts companies is imminent

At present, the procurement of auto parts has become more and more globalized. We can purchase the necessary spare parts from the international market. In this case, some foreign companies have advantages because their product quality and technology are much higher than those of domestic companies. At the same time, they can also co-develop R&D products with OEMs and continue to introduce new products suitable for the needs of vehicle companies. product. Relatively speaking, domestic companies have not done well in this area and there is still a big gap. In the future, the degree of globalization is getting deeper and deeper, domestic parts and components companies must do a good job of research and development, can not rely solely on low quality and low price competition in the market, otherwise they will lose their living space.

As buyers, their requirements for parts suppliers mainly include: timely supply, quality assurance, and simultaneous development with the entire plant. At the same time, product quality can be guaranteed and the after-sales service system is perfect. At present, the biggest problem in China's auto parts industry is scattered and disordered. There are many parts and components companies, and there are very few on the scale. The dispersed capital, dispersed personnel, and dispersed technology are common features of these companies. These small companies often have such problems with product quality and delivery timeliness, and the parts industry needs to be integrated.

Because many domestic small-scale parts and components companies cannot guarantee product quality, many times they have to choose international suppliers. Even though the price will double or even be several times higher, the quality can indeed be guaranteed. Many foreign companies' products cannot be replaced, and domestic spare parts companies still have a long way to go. Manufacturers with larger scales are indeed stronger, and small-scale enterprises have a large gap in terms of scale compared with these large enterprises, and they also have much poorer product quality and cost control. The quality and cost of parts and components are two major concerns for automakers. It is precisely in solving these two problems that many parts and components companies are not doing well. Not only is the quality of products difficult to guarantee, many companies are still unable to control their costs well, and prices are high. Such companies will not enter our long-term, formal list of suppliers.

Auto parts companies now care more about the requirements of OEMs. Because the competition is becoming more and more fierce, OEMs will adjust products according to policies and market changes at any time. Parts companies should pay more attention to the changes in OEM demand. Why does this happen? In my opinion, the main reason is that the consumer's recognition of the OEM's brand extends to the parts suppliers, which in turn affects the behavior of the entire vehicle procurement personnel. For example, if a consumer recognizes a Shanghai Volkswagen-branded car, then as long as it is a part supplier for Shanghai Volkswagen, the first impression for procurement personnel is that the component company will have guarantees in terms of quality and supply. Therefore, once a parts and components company enters the procurement system of a famous automobile company, it is very helpful for the promotion of its brand.

In addition, an urgent problem faced by auto parts companies in China is that the market is too big now. Many parts and components companies can survive as long as they find 35 or more OEMs. However, in the next three to five years, the parts and components market will face new integration. At that time, if only three or five host plants were supplied, it would be difficult to survive and it would be necessary to find more mainframe plants as supporting enterprises. For example, after the market has been further integrated, a transmission company may have to cover more than one-third of China's market for long-term development. To do this, the only thing a parts and components company can do is to enhance their own competitiveness, especially to enhance their R&D capabilities.

As a buyer on the auto parts supply chain, there are strict standards for the quality of parts and components. The suppliers are strong and weak, and some small-scale suppliers do not have a good position in improving product quality. We may need to make some adjustments to such suppliers. Those large and mature parts and components companies can guarantee the quality of supply.