The trade-offs of the parts industry: This is the best time

“This is the best time. This is the worst time. This is the era of wisdom. This is the time of stupidity. This is the period of faith. This is the time of doubt. This is the season of light. It is the season of darkness. This is the spring of hope. It is a disappointing winter." - "The Tale of Two Cities"

The use of Dickens' "worst" to describe the impact of the economic crisis on the automobile and parts industries in 2009 was more than adequate. The economic crisis has severely damaged the long-term export of China's spare parts. This is undoubtedly the "worst" state of the accessories business, which is mainly export-oriented. In fact, the worst of the true meaning is not only in the foreign markets. The long-term performance of Chinese parts and components companies in the domestic market is the concentrated expression of their overall level. With the impact of the economic crisis, the long-standing shortcomings in China's spare parts industry system have become increasingly prominent:

In the worst era, China's spare parts development weaknesses have been explored:

We are still in a weak position in basic industries such as materials and special equipment processing, design and production.

On November 25, 2008, a joint venture company jointly funded by BorgWarner and China Development Alliance was formally signed in Beijing. In the nearly 10 months, led by the National Development and Reform Commission, the cooperation details of the joint production and research and development of the dual-clutch transmission project jointly initiated by the two Chinese vehicle manufacturers and the US automatic transmission giant BorgWarner emerged. However, the cooperation plan that was put on the agenda as early as 2005 had been limited because of problems such as basic equipment. Its spokesman Zhou Yunfeng lamented that "the procurement of equipment from abroad belongs to special equipment, and that special tools such as knives and forks need to be redesigned and processed abroad. This is a major project."

To deepen the development of the domestic parts and components industry, it is of utmost importance to increase investment in basic industries such as materials and special equipment processing, design and production. Only by improving the design and manufacturing capabilities of the country’s advanced basic equipment can we Development provides the necessary guarantees.

There is no advantage for domestic companies in the R&D and production of key component products.

From the perspective of the overall economic situation and market distribution, foreign capital is accelerating its entry into the Chinese brand market. According to preliminary estimates, foreign companies have formed monopolies in key engine technologies such as high-pressure common rails, such as Bosch, Denso, Delphi and other foreign manufacturers. Among them, Bosch has occupied more than 60% of the market share, forming a monopoly. In the fields of automatic transmission, ABS and automotive electronics, its core technology is also controlled by foreign capital. While holding advanced products and technologies, foreign companies rely on their supporting systems to provide OEM support, and the market channels and brand value have considerable influence. At present, although there have been some attempts and advancements in the research and development of domestic spare parts technology, especially the research and development of key component technologies, there has been no breakthrough.

Insufficient integration of local components and OEMs in China

The lack of technology in key parts has directly led to the ability of local parts companies and OEMs. At present, domestic auto parts enterprises are still at a relatively low level. Some core parts and components with high technology and value added in auto production have to rely on imports, and thus cannot form a strong supporting capacity for auto innovation. This is undoubtedly the personal pain of the people. For Chinese local auto companies, there is no strong support for a zero-supplied system. It is difficult to achieve success in the world auto industry.

"The more difficult it is, the more it will advance!" This is even more true for China's parts and components companies. Recognizing the status quo in the industry and seeing opportunities for development are the most important parts for most parts and components companies in the current economic situation. The depressed economic environment is a good opportunity to complete market restructuring and corporate restructuring. For truly powerful parts and components companies, the "best time" is quietly emerging for the entire parts and components industry.

The depressed market environment encourages the development of the entire parts and components industry

At the time of the worst economic downturn, there is also a “buyer/seller market,” or how can there be economic growth? What companies need to do is to think and practice how to continuously develop new products and services, and constantly improve the quality of products and services. Constantly optimize the management and configuration of all resources within the company, and this process is the “best” period for the company to “have no people”.

At a deeper level, the depressed economic environment will inevitably lead to intensive restructuring and innovation activities. Structural renewal, quality improvement, technological innovation, service improvement, etc. will be the most concentrated measures taken by many auto parts companies. “No innovation is death”, the economy The downturn will allow companies and entrepreneurs who have “professed” and “shrink-fit” companies to be eliminated. This will maximize the overall level of the parts and components industry, and will contribute to the healthy and standard development of the entire industry.

"7 trillion yuan" in infrastructure investment will promote the development of heavy truck parts market

At the end of 2008, the central government introduced a series of measures to stimulate domestic demand in order to maintain the economic growth rate. These measures are mainly implemented in the form of fixed assets investment. This has a direct or indirect effect on the automotive industry. "Active role" and "promoting effect".

In 2009, the leveraging of “7 trillion yuan” in infrastructure investment will bring more market demand for heavy trucks, and the market is expected to increase significantly in terms of domestic demand. It is estimated that there will be a substantial increase in dump trucks and road transport vehicles. The optimistic forecast is that the demand growth will total 200,000 vehicles and the demand for accessories will be even more impressive.

Policy guides key component areas to increase investment

In 2009, under the guidance of the country and the efforts of enterprises, independent research and development in China's automobile industry may achieve greater breakthroughs in the following areas: First, more achievements in the manufacture of automotive engines, gasoline engines with power up to 50 kilowatts, or power A diesel engine with a displacement of not less than 40 kW and a diesel engine with a capacity of not more than 3 litres, and a diesel engine with a displacement of not less than 30 kW and a displacement of 3 liters or more will increase. More achievements will be made in the production of new energy engines such as fuel cells and hybrid fuels.

The second is the accelerated progress in the development of key auto parts manufacturing and key technologies.

Third, breakthroughs have been made in the manufacture and R&D of automotive electronic devices.

The industrial cluster of parts and components has initially formed a good momentum of development

China’s auto parts industry clusters are in the form of a preliminary scale in terms of form. There are parts and industrial bases built by old state-owned companies such as FAW Group and Dongfeng Group; there are also zeros when SAIC Motor’s Santana sedan project was used like SAIC. Components supporting groups; there are clusters of parts and components that are dominated by private companies, such as Taizhou and Yuhuan in Zhejiang, and more parts and components distribution centers for a specific model or special vehicle.

In terms of various parts and components industry parks with more Chinese characteristics, parts and components parks at various levels, including national, provincial, regional, and even county-level parts and components parks, have mushroomed rapidly. Although there is no accurate data, it is certain that the industrial cluster effect formed by more than 100 large-scale spare parts parks has become an important factor supporting the development of the Chinese auto industry.

These industrial clusters not only have a clear product target classification, but also provide more detailed supporting functions for the entire vehicle, and provide a good supporting role for the vehicle in terms of regional utilization and professionalism.

......

Despite the depressed economic environment, there are many opportunities for China's parts and components companies, no matter whether it is mentioned above or more potential opportunities (such as the development of remanufacturing, research on new energy and hybrid power components). ......) is the direction in which the industry can work hard. Needless to say, the shortcomings of the economic environment for the development of the parts and components industry are short-term and can be resisted, but the real benefits are far more than the above.

Just as Dickens said in the Tale of Two Cities 150 years ago, “This is the best time. This is the worst time.” For the entire parts and components industry, this may be the “winter of disappointment”, but this is more "Spring of Hope."

Pre Expander

pre expander,Expandable Polystyrene Machine,eps foam machine,eps machine,styrofoam machine, Pre Expander Foaming Machine

Hangzhou Sutuan Machinery Co.,Ltd.
Leading EPS EPP ETPU machinery manufacturer , https://www.sutuanmachinery.com

This entry was posted in on