Chinese hot automobile market of 2009 has made China quickly become the world's largest automobile market; it has become an automobile superpower, but not automobile great power. The core of developing China's automobile industry is to achieve the leaping development of auto parts industry, and master the core technology of components. Currently, the diseased full zero relationship of auto is increasingly becoming the tightening hoop-incantation that restrict the development of Chinese
auto parts enterprises, so to explore new cooperation model between automobile companies and parts manufacturers is imminent.
Now under the influence of capital, the supporting systems and administrative regions, the industry segmentation in domestic enterprises is serious, the technology is backward and the development is very difficult. Before more policies and measures that can encourage and support auto parts enterprises publishing by the state, the predicament of Chinese auto parts in the sandwich layer is difficult to change. Now with status advantages, domestic vehicle companies find various reasons to skimp
car parts enterprises' deserved payment, which they earn through supplying products to vehicle companies, in auto industry this is an open secret that vehicle manufacturers exploit component part enterprises. When vehicle companies lack adequate funds for their investment, they also require component part enterprises to provide substantial circulating funds for them, the amount is different from millions to a hundred million Yuan, in order not to undermine the cooperative relations, component part enterprises are forced to keep their resentment to themselves.
The strength of Chinese auto parts enterprises is not strong, now in China there are nearly two million Chinese-funded parts enterprises, accounting over 80% of the total number of domestic parts enterprises, but the sales is only 20%, 90% of products are concentrated in the low-end. A survey shows that it is difficult for most of Chinese-funded parts enterprises to enter supplier ranks of joint venture
car accessories products, the part suppliers with foreign capital background selected by American auto enterprises in China are close to 100%, the proportion of German and Japanese auto enterprises is 88.9% and 89.5%, but domestic own-brand auto enterprises is 52.8%.
Since the state current policy of auto industry is to restrict the foreign ownership can not exceed 50% in vehicle joint venture enterprises, bur there are not many restrictions on foreign investment entering Chinese auto parts industry, so the foreign parts magnates have set up wholly owned or joint venture enterprises in China, which has further occupied the market share of Chinese local parts enterprises, now it has accounted for 80%. The world-renowned parts companies are strengthening their expansion in China gradually, most China's domestic
dirt bike companies are marginalized, and they are facing great risk of bankruptcy. At present, China's core component parts such as auto electronic fuel injection system, engine, ABS, airbags, automotive transmission and so on are heavily dependent on foreign imports.
In recent years, the market share of local parts suppliers in this part is declining gradually. Since the 2008 financial crisis, the profit margins of global
skyrunner enterprises has dropped significantly, the profit before interest and tax is close to zero, some parts enterprises have gone bankrupt. The fierce market competition has forced foreign capital parts suppliers to accelerate the expansion in China, the world famous parts companies have established wholly-owned or joint venture plants in order to grab Chinese auto market in force. Chinese hot auto market in 2009 has attracted almost all the world's parts magnates to make Chinese market as an important market. After the world's major vehicle manufacturers such as Germany, the United States, France, Italy, Japan and Korea entering China, they have formed their own new and closed auto parts support system according to different
GPS Antenna technical standards. It has resulted in serious phenomenon in Chinese auto parts industry that the development is dispersed, which has greatly limited Chinese
electric bikes industry to centralize and form scale. Some joint ventures or wholly owned enterprises begin to develop toward the low end after they have achieved scale advantages in the early stage, for example, Bosch has started to develop
hex bolt corresponding parts products aiming at low-end auto models in order to meet the matching requirements of Chinese own brand
electric bike enterprise, when China's own brand parts companies are going upgrade, which is likely to make Chinese local
fitness enterprises face a new round of survival crisis.
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