After a century of development, the automobile industry has become one of the largest and most important industries in the world. It is the pillar industry of the national economy in developed countries such as the United States, Japan, Germany, and France. The auto parts industry is the foundation of the development of the automobile industry. With the advancement of economic globalization and market integration, the market position of the auto parts industry in the auto industry system has been gradually improved.
It is not difficult to see that the next few years will still be a golden period for the development of China’s auto industry, and the development prospects of China’s auto aftermarket are also very broad. Next, let’s return to the key points and talk about several major trends in the development of the auto parts industry.
01
Merger and reorganization may become a major trend
At present, the sales of most auto parts companies in China are low. Compared with the multinational giants with sales of tens of billions of dollars, the scale of Chinese auto parts companies is obviously small.
Moreover, my country’s manufacturing exports have always been known for being cheap. In order to effectively reduce production costs, large multinational companies have opened up emerging markets and not only transferred production and manufacturing links to low-cost countries and regions on a large scale, but also gradually extended the scope of transfer to R&D, upgrading, and procurement. , sales and after-sales service links, the scale of transfer is getting bigger and bigger, and the level is getting higher and higher.
The fastest way for domestic component companies to take a place in the future international market competition is to form a large-scale component company group through mergers and reorganizations. The merger and reorganization of parts companies is more urgent than that of complete vehicles. If there are no large parts companies, the cost cannot be lowered, and the quality cannot be improved. The development of the entire industry will be extremely difficult. Insufficient, in this context, if the spare parts industry wants to develop rapidly, it must speed up mergers and reorganizations to form economies of scale.
02
The emergence of large auto parts dealers
Comprehensive auto parts dealers will grow. The supply of auto parts is an important part of the aftermarket. Its scale can solve the problems in China’s aftermarket such as uneven product quality and opaque costs. At the same time, large-scale comprehensive dealers can improve circulation. Improve efficiency, reduce circulation costs, and provide spare parts guarantee for quick repair shops.
Business coverage and cost control are the key issues faced by comprehensive auto parts operators. Whether they can help chain stores solve the problems of high procurement costs and low efficiency will become the key to the success of large dealers.
03
The rapid development of new energy components
It is worth noting that many auto parts companies that have achieved “bright” results all believe in their financial reports that it is due to the development of parts such as new energy vehicle batteries that have driven the improvement in performance. Due to the great development of the lithium battery business unit and the new energy vehicle business unit, in 2022 new energy will become a big explosion in the automotive industry!
Regarding the problems to be solved in the development of auto parts companies, Chen Guangzu, a member of the China Automobile Industry Advisory Committee, said, “With the country’s emphasis on energy conservation and emission reduction, the most urgent problem for parts suppliers of traditional fuel vehicles is at present. The requirement is to modify the engine to solve the emission problem; and for the parts suppliers of new energy vehicles, the battery life and other technologies need to be further improved at present.”
04
Globalization of auto parts will become a trend
The globalization of auto parts will become a trend. In the future, my country will still focus on export and internationalization. With the changes in the organizational structure of the auto parts industry, more and more OEMs will implement global procurement of parts. However, China’s huge manufacturing industry and the characteristics of high quality and low price cannot be changed in a short period of time. Therefore, the wholesale of auto parts will still focus on export and internationalization for a period of time in the future.
At present, international buyers are becoming increasingly rational and practical for Chinese procurement. By selecting and cultivating potential core suppliers; increasing their own logistics integration: strengthening communication with foreign factories in China to improve the enthusiasm of the latter for exporting: dispersing procurement destinations, Compare with other emerging markets to determine the procurement location and other ways to promote the process of Chinese procurement.
According to analysis, although international buyers are becoming increasingly cautious about purchasing from China, in the next ten years, export and internationalization will still be the main theme of Chinese local component manufacturers.
At present, the auto parts industry is facing signs of transformation. Although the market potential of China’s auto parts industry is still huge, it also shows signs of a major transformation. The growth of China’s auto market will no longer be a simple and rough quantitative change, but is undergoing qualitative improvement. The auto parts industry in quantity, service rather than marketing is in front of us.
The feature that deserves the attention of industry peers is that technology-driven has gradually become the new normal. Today, the whole of China is shifting from being driven by population factors to being driven by innovation. The auto parts industry has also felt the huge impact of technology. When the whole industry is looking for new opportunities for development.
Post time: Jan-17-2023
