China's auto parts manufacturing industry needs structural adjustment

Since entering the 21st century, China's auto parts exports have entered a period of rapid growth. From the 1.632 billion U.S. dollars in 2001 to the 52.193 billion U.S. dollars in 2011, the scale of exports expanded rapidly like snowballs in 11 years.

The "Analysis Report on Production and Sales Demand and Investment Forecast of China's Auto Parts Manufacturing Industry in 2012-2016" released by the Industry Research Institute of Forward Looking indicates that with the rapid development of China's automobile industry, the automobile group has gradually grown and expanded, and the parts manufacturing plant surrounding the main engine plant is rapidly developing. With the increase, the scale continues to expand, and the professional collaboration capability continues to increase. Production companies have begun to develop in the direction of “clustering.”

The six major regional auto parts clusters have formed in the country, namely, the northeast region with Ha, Chang and Shen as the axes, the Pan-Yangtze River Delta, the Pan-Pearl River Delta, Wuhan as the center, and the central and southern regions formed in Zhengzhou and Changsha, and Chongqing, The southwest triangle area formed by Chengdu and Liuzhou and the economic zone around Bohai Bay.

The output value of auto parts in the six regions accounted for 81.1% of the country's total. The number of parts and components enterprises accounted for 79.9% of the country's total, and employment accounted for 79.3% of the country's total. The emergence of "clusterization" of the auto parts industry has improved the efficiency of the industry chain's vertical extension and horizontal cooperation of related industries, resulting in agglomeration and synergy, and promoting the innovation and development of the auto industry.

China's auto parts and components are entering a fast-rising channel. Data show that in 2011 China's auto parts sales increased by approximately 22.52%, higher than the growth rate of vehicle sales, achieved sales of 1977.891 billion yuan, industrial output value of 1988.53 billion yuan, all on the basis of the previous year, a larger increase. Reflect the industry's expansion in production and sales this year.

The research group of the Industry Research Institute of the Forward-looking Industry Research Institute predicts that by 2014, this figure will increase significantly to 652 billion yuan. In the next few years, the domestic auto parts market will be expected to reach an average annual growth rate of 20%; 2015 In the year, the proportion of Chinese parts and components exports is expected to increase to 30%, demand will reach 25.5 billion yuan, and the output value is expected to exceed 3.5 trillion yuan.

With the rapid increase in the demand for auto parts in China, a number of internationally competitive parts and components companies have emerged, especially in the field of wheels, tires, glass, and brake systems. Some companies have been tempered by years of overseas market competition. The research and development capabilities, product quality, and brand image have all been greatly enhanced. Some companies have also gone from the aftermarket to the post-sales market and OEM OEMs to the global matching procurement system of multinational car companies.

Some of the parts and components companies are actively carrying out capital output and are developing their own strength through overseas mergers and acquisitions. In early 2012, Ningbo Huaxiang announced the successful acquisition of assets and business of Serna GmbH, a subsidiary of the Serna Group of Germany, and its subsidiary plastic interior accessories company IPG Industrieplast GmbH; in March of this year, other companies in the United Nations acquired by Lingyun Group under China North Industries Group Corporation German company has a history of more than 150 years of car door lock manufacturing companies - 100% stake in Kai-tech companies. A series of overseas mergers and acquisitions and reorganizations have further increased the competitiveness of China’s auto parts and oversea markets.

It is worth noting that automotive glass, tires, wheels, and trailer parts are all high-energy, high-pollution, and low-tech automotive parts. With the increasingly fierce market, the profitability of such products is very low. The development of high-tech products, such as automotive air conditioners, automotive electronic instruments and transmission assemblies, etc., is a matter of no delay.

The Research Group of the Industry Research Institute of the Forward-looking Industry Research Institute believes that during the “12th Five-Year Plan” period, the auto parts industry will strive to comprehensively enhance its overall competitiveness, and the auto parts exports will form a pattern of entering the international auto supporting system. Nurturing a large number of large-scale enterprise groups with international competitiveness. After the small companies have accumulated funds by expanding their markets, they may wish to increase their own R&D efforts, and on the other hand obtain overseas advanced production technologies of auto parts and components through overseas mergers and acquisitions.