Analysis of the degree of domestic marketization of parts and components

Since the beginning of this year, driven by national policies and the needs of the Chinese people, the domestic automobile market has continued to be a hot market since last year. However, inconsistent with the situation of vehicle companies, the domestic auto parts industry is facing a great dilemma: auto parts companies are facing serious revenue problems, raw material prices, product backlog, and corporate development are even more difficult. The large number of enterprises and the overall quality is not high, exports have fallen sharply, and the domestic market has also fallen into a situation surrounded by foreign capital.

The current status of auto parts fully shows that the current degree of marketization of parts and components has been relatively high. Due to the low barriers to entry, large amounts of private capital have entered, and the number of companies is numerous, but the overall quality is not high. China's auto parts do not weigh heavily on heavy output, and heavy production does not emphasize research and development. Some companies have large factories but do not have special research and development centers. Therefore, the company’s independent research and development capabilities are weak and its ability to resist risks is poor.

How to guide the auto parts industry to emerge from the trough as quickly as possible and rise rapidly in the tide of globalization? Experts believe that, in the current economic situation, the parts and components companies must rely on national policy support in order to achieve long-term development, speed up mergers and reorganizations through industry revitalization plans, and optimize resource allocation to form competitiveness.

In related investigations, it was found that among auto parts companies, the parts and components business of nearly half of the enterprises was mainly concentrated on the business of domestic sales, and one third of the parts and components companies were concentrated on the business of export-oriented business, and there was less 1/10 The ratio of business exports to domestic sales is about the same. This reflects that most of the current parts and components companies are regional companies. On the one hand, their export business capabilities are weak, and their own scale is also small. The automotive companies serving the region have become their first choice.

Xu Changming, director of the information resource development department of the National Information Center, believes that the merger and reorganization of parts and components companies is more urgent than the entire vehicle. If there are no large parts and components companies, the costs will not come and the quality won't go. The development of the entire industry will be extremely difficult. The domestic parts and components companies are small in scale, weak in strength, and lack of R&D capabilities. Under such circumstances, if the parts and components industry wants to develop rapidly, it must speed up mergers and reorganizations to form economies of scale.

Previously affected by the financial crisis, the development of foreign auto parts companies is still not optimistic. In Germany alone, there are nearly 100 auto parts companies that have been in trouble because of the capital chain break. They are looking for buyers and investment opportunities in the country, many of which are good Technology and stable sales channels for companies. Wang Zhile, a research fellow at the Institute of International Trade and Economic Cooperation of the Ministry of Commerce, suggested that we should expand our opening up and learn from the experience of large-scale two-way investment in developed countries to actively promote the globalization of the auto parts industry. Should actively participate in overseas mergers and acquisitions, absorb international resources and promote the upgrading of domestic parts and components industry.

At present, some domestic automobile companies and parts and components companies have gone abroad. For example, Beijing Pacific Century Automotive Systems Co., Ltd. acquired the global steering and transmission business of General Motors of the United States, accelerating the accumulation of technology, talent, and experience, and has become a global leader in auto parts suppliers; Ningbo Lawrence Auto, a subsidiary of Ningbo Huaxiang Group The interior company signed an agreement to acquire the real wood manufacturing center of the Jaguar Land Rover in the United Kingdom; before that, BWI had purchased the Delphi brake and suspension business from the United States; Geely purchased the Australian DSI automatic transmission company; and Wanxiang purchased the US auto parts company. Axis business and a series of overseas acquisition activities. China’s domestic auto parts companies have increased their technological capabilities through overseas acquisitions, and it has become increasingly evident that foreign companies’ strategies to control key technologies and market conditions are becoming more and more obvious.

Regarding how to identify M&A targets, industry insiders believe that many valuable foreign car companies will face bankruptcy crisis. While owning technology, their customer market is also very attractive. For Chinese companies, this is good. Opportunity. It is best for a company to first look for its own core competencies, and then assess whether overseas mergers and acquisitions are the best choice and what kind of acquisition target to choose. Auto companies need to think more about quality issues, and upgrading quality requires advanced technology. This is a key part of M&A.