According to information released recently by the China Association of Automobile Manufacturers and the National Bureau of Statistics's Industrial Transport Statistics Department, among the "China's Top 100 Auto Parts in 2005" ranking, 54 foreign-funded enterprises have taken the lead. According to other data, China's auto parts industry is already the fifth largest supplier of US parts. It is estimated that during the "Eleventh Five-Year Plan" period, China's parts and components market will reach an annual growth rate of 35%. Before 2010, China’s exports of parts and components will reach US$40 billion. At present, more than 70% of multinational component giants have gathered in China, bringing a severe test to local parts and components companies.

Foreign investment in the market is large: "Since the first high-tech parts and components joint venture brought by localization of Santana, in the late 1990s, China's parts and components industry ushered in the second joint venture climax." In the interview, China Automotive Technology Research Wu Songquan, a central intelligence agency, told reporters that the new foreign-funded parts and components enterprises that were newly built for the complete vehicle joint venture in the second climax were much more investment-intensive than the former.
Sun Muzi, a senior automotive analyst at Xinhuaxin, also stated: "With the promotion of the "Administrative Measures for the Import of Auto Parts That Constitute the Characteristics of Complete Vehicles" and the increase in the protection of government intellectual property rights, more and more foreign investment has also been allowed. The auto parts companies entered China, and the third round of foreign investment in auto parts has once again reached its climax."
This round of new investment boom, in addition to Japan, South Korea, the United States, Germany and other traditional auto parts manufacturers follow the host plant stationed in China, from Switzerland, Spain and India and other places large and small auto parts manufacturers have also invested in China Set up factories. According to incomplete statistics, there were more than 90 international parts and components companies that signed up for investment in China in 2005, and the amount of investment reached 4 billion U.S. dollars, which was 3.2 times that of 2004.
In addition, the tendency of foreign-invested holdings and sole proprietorship is increasingly evident.
Shen Ningwu, deputy secretary-general of the China Association of Automobile Manufacturers, pointed out that the internationally renowned parts and components group has continuously increased investment in the domestic parts and components industry, and has formed a complete process system from research and development, training to production and sales, and began to realize its best division of labor in China. And reasonable layout. At the same time, the foreign investment strategy for China's auto parts has also changed: from the change of shareholdings to holdings, the transformation from joint ventures to sole proprietorships, and the transition from occupying markets to monopolizing markets.
Local companies are faced with the challenge of the "Eleventh Five-Year Plan". China's auto parts industry must gradually increase its investment in scientific research, enhance its independent innovation capability, cultivate its own brand, and form independent research and development and technological innovation capabilities as soon as possible. The adjustment of industrial structure should achieve remarkable results. Energy-saving, environmental protection, safety, and application of recycling technology should approach or reach the international advanced level, and participate in the cooperation and competition of the international automobile industry in a deeper degree, and the world’s major auto parts manufacturing bases should be initially established.
However, the R&D input of China's auto parts companies currently accounts for only 1.4% of sales revenue, which is far lower than the average 5% of multinational companies. The shortage of research and development funds directly led to the backwardness of R&D facilities, resulting in weak research and development capabilities. The lack of development capacity and the lack of competitiveness of self-owned brand products have seriously hampered the enhancement of the international competitiveness of auto parts.
According to statistical data, Wanxiang Group, the top 100 company, achieved sales revenue of 25.215 billion yuan in 2005, an increase of 4.4 billion yuan from a year ago, ranking first in the world in terms of growth rate. However, compared with the top 100 auto parts suppliers in the world, its sales revenue gap is still more than 10 times.
Opportunities are still huge There are statistical data show that by 2010, the total trade volume of the world’s automotive products is expected to reach US$2 trillion, and multinational companies plan to purchase US$50 billion worth of parts and components in low-cost countries by the end of 2007. The rapid development of the automobile industry in countries such as China and India has made these regions a potentially huge automobile market, and has provided the best opportunities for multinational corporations to adjust their industrial chains. According to industry insiders, the ability of Chinese auto companies to participate in international competition is gradually increasing, which allows them to get more opportunities to join the wave of international mergers and acquisitions and restructuring.
The entire vehicle includes tens of thousands of parts and components. If the key parts and components do not have their own brands, the development of the national car companies will still be restrained from time to time. However, it is possible to achieve breakthroughs in a certain area so that key components can not only be self-sufficient but also face global supply. It is a very large market. Some experts stressed that the domestic parts and components industry must form its own characteristics and brands, achieve scale operations, and support various types of products. In particular, it must closely cooperate with the brand strategy of the entire vehicle company to increase competitiveness through joint cooperation and gradually build Chinese auto parts and components. Product's "cost, quality, high-tech" A-level image.
Some experts pointed out that the increase in global procurement of multinationals in China will also bring hundreds of millions of dollars to Chinese companies.
According to the China Association of Automobile Manufacturers, the way out for China's local auto parts companies is to strive to become an international auto parts procurement center. Experts pointed out that at present, we are facing a new wave of international auto industry shift, realizing the transformation from local and regional production to global production, and forming a new batch of industrial clusters. China's auto parts industry must seize the opportunity to use the established foundation to accelerate the construction of the parts industry base to meet the needs of the international agency and after-sales service market. Zhang Peiying

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