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Development Trend Of China Auto Parts Industry

    Development of China's auto parts industry in meaningful, must inferior vehicle, our parts and components industry is the most promising to become a world affected industries. At present, China auto parts industry is in a very critical period, on the one hand, maintain high growth momentum, in the automotive industry to GDP ratio increased gradually; the other hand, the development of China's auto parts industry, faced with multiple pressure and challenges, an urgent need out of the woods.

    1, showing five major trends in

    First half of 2006, China's auto parts industry seize the strategic opportunities to support independent innovation and international transfer of the automobile industry an opportunity to carry out the necessary strategic adjustments, the promotion of industrial structure, product structure optimization and upgrading and development capability to meet the entire vehicle development needs and market demands, showing five major trends:

    

(A) the beginning of the current cluster of scale

    Auto parts production is the beginning of the cluster effect. With the rapid development of automobile group around the OEM automotive parts industry cluster has also been rapid development. By region, has been basically formed the northeast, Beijing and Tianjin, central, southwest, Yangtze River Delta, Pearl River Delta six parts industry cluster. Auto parts industry cluster, thus enabling more sophisticated division of labor, more professional and easier to achieve scale, to make information more focused, quicker and faster pace of technological innovation, logistics and more easily organized economic efficiency has improved significantly. Auto parts industry cluster and the cluster effect in the future will be faster development. China's auto parts enterprises mainly in Zhejiang, Jiangsu, Shanghai, Hubei, Shandong, Guangdong, Jilin and other regions, including Shanghai, Zhejiang parts enterprises in both areas the output of higher efficiency. In the June 23, 2006 release of "2005 China Auto Parts One Hundred" list, more than 2 billion yuan sales income amounted to 22 enterprises, accounting for 22% of the total number of 100 companies, sales revenues accounted hundred companies the total sales income of 61.44%, of which more than 10 billion yuan sales income of enterprises 4. Hundred companies in 2005 achieved a total sales income of 217.577 billion yuan, an increase of 21 billion yuan, an increase of 10.7%, accounting for more than 4447 auto parts the size of enterprise sales revenue 63%, indicating that the size of auto parts industry effect has been greatly enhance.

    

(B) to accelerate the pace of integration and restructuring

    Learn foreign auto parts industry development experience, restructuring, integration will be China's auto parts industry is one way out. Since 2006, consolidation and reorganization of China's auto parts enterprises and production of socialization, professionalization of rapid development. Through joint re-present, China's auto parts industry, basically out of the past, the kind of "quantity, size small, poor quality" scenario, production levels were significantly increased, and has formed a supply for domestic OEMs matching system. Such as FAW-rich Austrian company, Dongfeng spare parts division and so on, private auto parts enterprises developed rapidly, investment diversification is taking shape. Private enterprises showed significant growth and competitiveness, components product technology, quality, levels greatly improved, and the private economy showed significant growth and competitiveness, not only has become the main supply of aftermarket parts and export of the main , and the formation of a number of internationally competitive auto parts enterprises, such as the Wanxiang Group, Zhejiang, three flowers, Wanfeng Otter.

    The face of market competition, and spare parts industry to speed up the pace of industry consolidation, in the spare parts sales and establish sales of the Commonwealth, including e-commerce, including sales network, combined with logistics companies to form large parts sales group. Diesel engine parts diesel engine parts have been built in the Commonwealth of the market price of the diesel engine parts self-discipline, a certain role in promoting market-oriented. It is understood that the State will be in a few years to develop new standards, the assembly class into 2 parts factory 4, others 23 matching plants to the diversion, and then develop labor-intensive parts and components, such as brake discs, friction materials to address the diversion in seeking employment. As for those high-volume, cycling and the technology is too complex a small amount of standard parts, such as the rubber gasket will no longer be emphasized that domestic and imported directly.

    

(C) the capacity to rapidly enhance the international competitive bidding

      First half of 2006, all parts enterprises to overcome the exchange rate changes, and factors such as rising raw materials, and strive to take measures to cost efficiency and actively participate in multinational global parts procurement bidding, bid rate greatly increased. The first half of the United States in the SAIC-GM EPSILON project has been designated 13 enterprises, many products not only supply to Shanghai GM, GM will also supply other factories around the world. Shanghai Koito the headlights, GKN of the drive shaft, Sanden Behr air-conditioning compressors, Yanfeng Johnson's seat side cover, shot in the suspension springs, etc. Following the realization of a large number of products OEM package, the current entered synchronous development of the ranks, indicating that these companies product development capability and market competitiveness greatly enhanced.

    The first quarter of 2006, exports of automotive parts and components amounting to 4.623 billion U.S. dollars, up 44.11%; With the ability to enhance the development of automobile parts, OEM parts assembly supporting the export large orders increased significantly.

    In March 2006, Chery exported to the U.S. 5000 engines, not only the engine is by far the Chery exported the largest volume of orders, but also their own brand passenger car engine in the international market's largest deal. Following the Shanghai GM CAMI engine OEM quantities exported to Canada, the Shanghai Huizhong the first time this year, GM's 50 billion yuan, chassis systems large orders.

    

(D) towards high-tech products

    High technological content of products and some of their own brands on the market one after another this year, automotive product development as well as vehicle safety, emissions and other requirements of higher technical level of auto parts also increased gradually. In China, due to the introduction of advanced technology and joint ventures with foreign co-operation, a number of high-tech products in volume production. Such as the Shanghai United Electronics Co., Ltd. and Beijing Delphi Wanyuan Engine Management Systems, Bosch and Delphi, respectively, the introduction of technology, production Electronic Fuel Injection System; Shanghai Automotive Brake Systems, the use of technology to produce cars with Bosch ABS; Shijiazhuang Kuraku Company, Jinzhou Hop Cheong Company, Jinzhou Jin-Heng companies producing airbag products; Dongfeng Honda Engine Co., Ltd. produce automatic transmission; Dongfeng Motor Corporation, Shanghai Hino, North China's introduction of diesel engines produced by Cummins, Hino PC Ⅱ, and other high-power DEUTZ 1015 Euro Ⅲ emission levels of diesel engines and so on.

    In 2006 China's automobile electronics exports pick up. Yanfeng Key is the airbag assembly Zouqiao domestic and foreign markets in the first quarter reached 3.6 million U.S. dollars export. Joint electronic sensors, injectors and other electronic products exports this year, a relatively large increase; Yanfeng Visteon Automotive Electronics Co. products continue to maintain a good momentum of exports. In addition, the traffic on the real car horn is also to achieve this year, the export OEM quantities.

    

(E) Foreign investments continue to enhance

    Multinational giants with technology, brand, management, encroachment of China's auto parts market. As the field of auto parts in China lift the restrictions on foreign investment than stocks, "sole" of the spread of multinational auto parts enterprises. In the past six months, Delphi, Mahler, Bosch and other multinational companies in the domestic production base in the newly formed more than 10, and 90% of the above-owned enterprises, in 2006, parts enterprises have been set up in three wholly-owned investment Guoyi R & D center. Recently, Delphi relevant responsible person said that Delphi China currently has eight production bases and a newly established R & D center, which was established early last year and this year the two parts business and a technology center are wholly-owned enterprises, Del Fu will further focus on the development wholly-owned R & D center, the future R & D center developed by the Chinese technology will belong to Delphi. Parts from the engine manufacturer point of view, Mahler was "sole" of the pace of the fastest growing businesses, now MAHLE shares of all enterprises in China have more than 50%, in Nanjing, Chongqing, engine plant has completed its "wholly-owned technology "transformation, the newly established technology center is also a wholly-owned enterprises. The other parts giant Bosch is also expanding its ratio of domestic investment, according to Bosch's plan, in 2005 and 2007, Bosch in China's investment will total 650 million euros to 2007 sales will double.
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