Development of parts and components industry must have real measures


In 2005, the production and sales of Chinese automobiles exceeded 5.7 million, creating a new historical record. The scale of the automobile industry has ranked third in the world, but the domestic auto parts industry is in a relatively difficult position. According to the statistics of China Association of Automobile Manufacturers, in 2005, domestic 1,670 automobile (including motorcycle) parts and components manufacturers completed industrial output value of 240 billion yuan, accounting for about 22% of the total output value of the automotive industry. At a national industrial restructuring work conference, the relevant person in charge of the National Development and Reform Commission’s Industrial Policy Department stated that China’s auto parts and vehicles have not been able to develop synchronously, which has affected the improvement of the entire vehicle technology level. Through joint ventures and cooperation, the manufacturing technology and quality of finished vehicle products have approached the international level, but the production of components lags behind the development of the vehicle. The overall supporting capacity of parts and components companies is not strong, the level of specialization is low, and the ability of independent development system integration is weak, which can not keep pace with the development of the whole vehicle. Therefore, we must strengthen the innovation capability of the parts and components industry, enhance the core competitiveness, improve the product technology level and quality, take the road of globalization development, and strive to form a new competitive advantage.

A new round of car localization impacts domestic auto parts industry

Since the last two years of the last century, the Chinese auto market has entered a new stage of rapid development, including two “blowouts” from 2002-3003 and 2006. Last year, relevant domestic departments forecast that the domestic automobile production in 2010 will reach 8.5 million units, and the growth rate of automobile production and sales in April-April 2006 will reach over 33%. According to this trend, even if the speed is reduced, the vehicle production in 2007 may reach 850. 10,000 vehicles to complete the "Eleventh Five-Year" plan ahead of schedule. From January to April this year, the cumulative production of cars was 1,246,500, an increase of 59.99% year-on-year; the cumulative sales were 1,206,300, an increase of 61.27% year-on-year, far higher than the total output growth rate. In the growth of passenger cars, it is mainly supported by small and medium-displacement cars. In other words, private consumption promotes the growth of automobile production and sales. As the level of private car ownership in our country is still very low, the development potential of the car market is very large.

Compared with the booming of the Chinese automobile market, the traditional automobile markets such as Europe, the United States, and Japan are in a stagnant and slow-growth state. As a result, the world's automobile giants have listed the development of the Chinese auto market as a global strategic priority. With cheap labor costs and vast market potential, the Chinese auto market is of great appeal to multinational auto groups that are deeply plagued by rising manufacturing costs and increasing competition in the international automotive market. With the "6+3" (GM, Ford, Toyota, Dai-Ke, Volkswagen, Renault-Nissan, BMW, PSA and Honda) multinational auto giants have stepped up investment in China in recent years and have introduced new models.

Many multinational corporations adopt the strategy of “production where needed” and this strategy is also constantly evolving. At the beginning of 2006, Toyota Motor Corporation President Watanabe Watanabe made a new year speech, emphasizing that Toyota will base itself on the principle of “sustainable development and solid foundation” and will “strengthen development strategy measures” and “build a solid foundation for development” as The two major guidelines take active measures. Among them, the "strengthening development strategy measures" has two major issues, namely "technology development" and "localization." At the end of last year, Dongfeng Nissan proposed a "multi-level localization" strategy, which included the localization of R&D and the localization of talent in addition to the localization of procurement.

In addition, China’s industrial policy is also changing. In the past, China adopted the method of realizing the introduction of complete vehicles and gradually realizing localization. The new automobile industry policy adopts the method of managing the characteristics of complete vehicles of automobiles and adopts stricter restrictions on the loading of imported complete sets of components. Actually, It is equivalent to requiring localization of new cars as soon as they are put into operation. This change, on the surface, should be a major opportunity for the development of China's auto parts industry. However, this is not actually the case.

In the negotiations on accession to the WTO, China has promised to maintain a 50% 50% share-to-share ratio requirement for complete vehicle joint ventures, and the production enterprises of engines, transmissions and other auto parts can be controlled by foreign companies or even wholly-owned. There are two kinds of situations: One is the modern model of South Korea, that is, the local production of engines and gearboxes is started at the same time as the entire vehicle production enters China, and the object of localized procurement is still the original partner. Using this model, there are Japanese car manufacturers. Why is there a phenomenon of Japanese auto companies gathering in Guangzhou? It is because there is a supporting system that it was originally shared in Japan.

In another case, a multinational parts and components group set up a factory directly in China. According to statistics, of the more than 5,000 automotive parts and components companies in China, more than 1200 are foreign-invested companies, and more than one-fifth of them are. The multinational auto parts group’s sole proprietorship and joint venture in China has become a powerful force in China. . Many of the multinational auto parts and components groups entering the Chinese market rank among the world's top 500 companies. While bringing in technology and capital, they have introduced globalization, neutralization, synchronization and modularization for the domestic auto parts market. Advanced management concepts and business models have brought severe challenges to the development of China's auto parts industry.

Recently, Delphi, Mahles, Bosch and other multinational companies have set up more than 10 new production bases in China, and more than 90% of them are wholly-owned enterprises. Delphi currently has 17 production bases and a research and development center in China, of which two are Technology Center is sole proprietorship. Mahler is the fastest-growing company with "sole proprietorship". Currently, Mahle's shares in all Chinese companies are more than 50%. Mahle has already acquired shares of joint venture partners in Nanjing, Chongqing and Tianjin, which are in Nanjing and Chongqing. The engine factory has completed the "sole investment" transformation, and the newly established technology center is also a sole proprietorship. According to Bosch's plan, from 2005 to 2007, Bosch's investment in China will reach 650 million euros, and sales will double by 2007.

Affected by technology research and development, product quality, structure, and batch volume, most of China's auto parts products are matched with commercial vehicles. In recent years, the rapidly growing car matching market has a weak competitiveness and cannot compete with transnational giants.

China's parts and components companies are like a candle lit by both ends. One end is the increase in the prices of raw materials for parts and components. In 2004, the total ex-factory price of industrial products rose by 8.1%; the price of crude oil and refined oil went up by 45.3%; the price of coal rose by 24.2%; The price of steel increased by 11.6%-14.7%; the price of non-ferrous metal products rose by 20.2%, of which, the ex-factory prices of copper, aluminum, lead, zinc and nickel rose by 9.5%-34.9%. The vast majority of this rising cost is borne by parts and components companies. At the other end is the continuous decline in vehicle prices. In 2002, Jetta’s price was 100,000 to 170,000 yuan. In March this year, the price was 7.9 to 86,000. The entire machine manufacturer must first pass the pressure of price cuts directly to the parts suppliers. Body. In order to realize the maximization of the group's profits, the OEMs demand that the price of parts and components be reduced by 8%-10% every year in actual procurement. If the upstream component factory cannot be implemented, the host plant will cancel its supporting qualifications. This has made parts and components companies more difficult.

The confusion in the market order and the rampant use of counterfeit and inferior products are another major disaster faced by auto parts companies. According to the report of “Mechanical and Commercial Daily”, the genuine share of the auto parts market is only about 30%, and the rest are occupied by imitation products and refurbished products. In the past three years, accidents occurred due to the use of inferior components. The car accounts for about 13% of the accident car.

Why China's parts and components companies do not share a slice

The head of a big car company once lamented that the only eternal thing in the world is change. In the 1980s, China established the three major three-sales development bases and introduced Santana, Jetta, Fukang, Xiali, Peugeot and other products. The relevant agencies felt that the entire vehicle products were sufficient, and they would engage in localization on the basis of these products. Due to the weak foundation of parts and components, the road to localization has been very difficult, such as the localization of Santana spent 10 years. Zhang Xiaoyu, vice chairman of the Machinery Federation, once said: For auto plants, the new products you see on the street are already backward products, and domestic Santana, which has been running for more than a decade, has disappeared in other parts of the world. .

That is, since the late 1980s, the world's auto industry has undergone tremendous changes. In the automotive industry, large-scale mergers and acquisitions have taken place, and vehicle production has become a “6+3” system. In the past, the one million-strong group that the Chinese people yearned for was only a boat in a precarious situation and it was difficult to resist the impact of competition. The automotive products have undergone tremendous changes. Safety, environmental protection, energy conservation, electronics, and personalization have become new trends. The production methods of automobiles have also undergone tremendous changes. The lean production model represented by Toyota has already been adopted by the global automobile industry. The automaker has already cancelled the warehouses, requiring parts and components companies to supply batches to OEMs every day. Now some The newly-built automobile factory simply requires the parts factory to set up production sites in the factory area of ​​the vehicle factory and connect the assembly line with the assembly line of the entire vehicle factory. The original automobile factory wanted to assemble 20,000 to 30,000 parts in a few kilometers long assembly line into a car. Now the assembly of the car has been modularized, the whole car is divided into 10 or so modules, the assembly engineering is greatly simplified, it requires zero Component suppliers provide modules rather than one part. The development of the automobile has also changed. In the past, after the automaker developed a new product, it was looking for a component supplier. Now it is at the stage of developing a new product that the component company needs to step in and synchronize the development of the component. The next goal of the world auto industry is to set up large-scale production of automobiles, that is, tailor-made clothes, tailor-made cars for each consumer, and then produce them on a large-scale production line.

These changes have made China's parts and components industry stunned. Under the new auto production mode, the parts suppliers are becoming more and more important and their demands are getting higher and higher. You must have strong technology and product R&D capabilities. Not only must it be developed in tandem with the auto manufacturer, but also it must be developed ahead of time. Needless to say, many foreign parts factories have more than one vehicle testing ground. If there are two test tracks in Japan, there are only a handful of expensive facilities and domestic automobile companies, let alone parts and components. plant. It is now quite different from what we used to ask for one thing at a time, which requires parts suppliers to have system (module) development and supply capabilities. Requires the parts factory to have a global supply system and a logistics system that can be delivered to designated locations according to the specification, quantity, and time specified by the vehicle manufacturer.

The dilemma of the development of domestic parts and components industry is reflected in the poor market resilience. The deep-seated problem is the new competition requirements of China’s auto parts companies for global procurement, synchronized R&D and modular supply brought by multinational giants. Not adaptable. China's auto parts companies face several bottlenecks in technology research and development, product structure, quality and cost control.

Director Jing Qi of the Industrial Development Division of the Hubei Provincial Development and Reform Commission said that in addition to the few companies such as AVIC, there are 291 auto parts enterprises in Hubei Province. Because there are no advantages in technology and there is no independent brand, only the production of other people's products can be imitated. With the implementation of global procurement by vehicle companies, especially joint ventures, among the new models introduced, domestic auto parts companies have almost no contribution. It cannot compete with transnational giants and is at risk of losing the traditional market.

Compared with R&D capability and product structure, the current problem that needs to be solved urgently is that China’s auto parts companies have not yet prepared to enter the global procurement platform. Most companies have not yet purchased “tickets” to enter this platform. ? TS16949 quality system standard third-party certification. At present, all auto parts companies entering the global procurement industry adopt this new uniform standard. There are few parts and components companies that have passed this certification at present. Without this "ticket", China's auto parts companies have lost the qualifications for competing with multinational giants on the same stage.

Does the last talisman work?

As the saying goes: Strong dragons don't press the ground snake. As a land snake, Chinese auto parts have two amulets: the first is local or group protection, and the second is cheap labor. Many studies have pointed out that multinational companies are also faced with many risks in entering China's auto parts market. Among them, the greater risk is the two amulets they face in China's auto parts industry.

The organizational relationship between China's automobile manufacturers and parts manufacturers can be roughly divided into three types. One is that a part factory belongs to an entire vehicle factory, or it is a professional factory directly under the company, and it is generally a core enterprise layer member of the automobile group. After the restructuring of the company, it becomes a wholly-owned subsidiary.

The second is local auto parts supply companies. In China, there are many cases where the first and second companies overlap, but what they have in common is protection, group protection, or local protection. The third type is independent professional manufacturers. They are completely independent in form and do not belong to any auto group.

In the first and second type, the relationship between the vehicle-parts relationship is the master-slave relationship, and the development of the parts factory depends on the development of the vehicle factory. The automaker provides technical specifications and application requirements to the parts factory. The parts factory conducts detailed development and design and organizes mass production according to the models of the automaker.

In the third category, the vehicle-to-part relationship is a kind of competitive cooperation relationship for order procurement. The entire vehicle company prioritizes the products of directly-owned specialized plants or local parts and components companies in the group, and generally has the same choice when selecting fixed-point suppliers. Strict screening procedures, so if independent companies want to match with the auto manufacturer, they need to have considerable strength.

In the Chinese market, many parts manufacturers can only supply one or two vehicle manufacturers, and they are not exclusive suppliers. This dispersion means that if you supply Shanghai Volkswagen, you cannot supply Dongfeng Group. For multinational parts and components companies entering the Chinese automobile market, in order to relocate the existing supporting systems in China, and to relocate group-local interests, production facilities have to be established in multiple regions. As a result, not every joint venture factory can guarantee its The overall scale of economic benefits. Chinese manufacturers are under local government and local economic pressure. In the decision-making process, local GDP growth, fiscal revenue, employment situation and other factors must be taken into consideration. At the same time, vehicle manufacturers are not only automobile manufacturers, but also local and group auto parts manufacturing. Business growth momentum. The result of local and group protectionist policies has led to the selection of low-quality, high-priced companies.

There is a hot topic this year – the minimum wage. China's economic development, especially exports, is achieved through low wages and high consumption. Now we are advocating the concept of scientific development. A few days ago, Guangdong Province determined the classification target for adjusting the minimum wage this year. One of them was 800 yuan/month (Guangzhou), an increase of 16.96% year-on-year; the other was 700 yuan/month (Foshan, Dongguan, Zhuhai, Huizhou), The growth rate was 21.95%, of which Huizhou increased by 41.70%; the third category was 600 yuan/month; the fourth category was 500 yuan/month. At the same time, Shanghai, Jiangsu and Zhejiang also intend to further raise the minimum wage. The Guangdong provincial government proposed that Shenzhen adjust the minimum wage to 850 yuan/month. Therefore, the development of auto parts can no longer be established on the basis of low costs based on low wages, but must take the development path of increasing scientific and technological content.

Develop auto parts industry?

The status quo of the development of parts and components industry is indeed worrying. Many comments point to the various shortcomings in the development of the parts and components industry. They have developed roughly the same recipe for the development of the parts and components industry, as indicated by the government official at the beginning of this article, and 10 years ago, the relevant domestic departments had a very beautiful part development strategy. So this article does not want to repeat those preaching. To develop auto parts and components, say a thousand and one thousand, in the final analysis we must come up with real measures. The key to the success of Japan's and South Korea's auto industry policies is that the government controls loans and thus guides investment. During the “Seventh Five-Year Plan” period, domestic investment in the whole car industry was 3.35 billion yuan, while investment in parts and components was only 1.4 billion yuan. During the “Eighth Five-Year Plan” period, these two figures were 17.6 billion yuan and 7.63 billion yuan respectively. Many parts and components companies are now private enterprises, and it is more difficult for private enterprises to obtain loans. As long as the proportion of investment is reversed, there will be hope for the development of auto parts.


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