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Automotive parts innovation
Dec 20, 2018

The annual National Conference has already opened. The two conferences in 2011 are worthy of summarizing the key nodes of the 11th Five-Year Plan. Therefore, during the two sessions in 2011, the automobile industry will become bigger and stronger, and the topic of how to change from quantitative to qualitative is not natural. Will be less.

The main theme of the 12th Five-Year Plan of the automobile industry is to be strong, to strengthen the core or to have core technology, core competitiveness, and strengthen independent innovation. In a certain period of time, the independent innovation of the whole vehicle has made progress, and new products can be developed using existing platforms abroad, but platform development is still a weak item. The independent innovation of auto parts has been neglected, and the self-owned brand parts industry has already been marginalized. Since the auto parts manufacturers may not have many representatives in the two sessions, the two conferences have not heard much about this in the past years.

According to the data of the Ministry of Commerce, foreign capital controls most of the market share of auto parts. The sales revenue of domestic parts only accounts for 20%-25% of the whole industry. Auto parts manufacturers with foreign investment background account for more than 75% of the entire industry. Among these foreign-funded suppliers, the wholly-owned enterprises account for 55%, and the Sino-foreign joint ventures account for 45%. The local parts are mainly used in self-owned brands, and the market share is low.

In the high-tech content areas such as automotive electronics and engine parts, the foreign market share is as high as 90%. Among them, the output of core parts such as automobile EFI system, engine management system, ABS and airbag, automatic transmission, etc. The proportions are 100%, 100% and 91%, 69% respectively.

Compared with the whole vehicle, the period of component investment is longer, the capital threshold is higher, and the business risk is also greater. Today, the lack of core technology of China's auto parts is still evident. Domestic auto parts companies are mostly concentrated in the low-end areas with low technology content and low profit levels. The price has become the only competitive means for Chinese enterprises. In this way, the parts industry has gradually become a hurdle in China's auto industry, which seriously restricts the implementation of China's auto power strategy.

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