BOB·半岛

At the 2014 China Automotive Parts Industry Annual Conference held recently, the China Association of Automobile Manufacturers reported that after decades of development, Chinese brand automotive parts enterprises have basically covered the vast majority of automotive parts. However, domestic automotive parts companies in China are presenting a situation of coexistence and development of Chinese brand enterprises, Sino foreign joint ventures, and wholly foreign-owned enterprises.

According to incomplete statistics, the total number of component companies exceeds 10000 (with less than 6000 large-scale enterprises). Among them, foreign-funded enterprises (sole proprietorship 45%, Sino foreign joint venture 55%) account for 20% of the scale enterprises, but their market share is as high as 70% or more. Among them, Chinese brand component companies have a market share of less than 30%, with 90% of their products concentrated in the mid to low end, and their market share showing a downward trend. In high-tech fields such as automotive electronics and key engine components, foreign market share is as high as 90%. In the fields of core components such as engine management systems (including electronic fuel injection) and ABS, foreign-funded enterprises account for over 95% and 90% respectively.

The report points out that the development of Chinese brand parts enterprises faces challenges from various aspects, including the pressure to comprehensively improve quality and the problem of top-level design deficiencies. These enterprises find it difficult to compete with advanced foreign enterprises in terms of independent innovation capabilities and core product competitiveness.

According to the report, foreign-owned and Sino foreign joint ventures have basically monopolized key and core technologies. From the current situation, the country lacks systematic planning for the strategic transformation and upgrading of the automotive parts industry, and lacks relevant supporting policies to encourage and support the research and production of key core components. It is necessary to have a clear understanding that the development of the automotive parts industry is closely related to the development of the entire vehicle. While developing the entire vehicle, it is necessary to recognize the importance of synchronous development of the spare parts industry in order to ultimately win the domestic market and have its own place in the world.