Facing foreign-funded enterprises, China's auto parts industry faces challenges


At home, local parts and components companies are falling in some places.

Beijing's auto parts industry has basically been monopolized by Korean companies. In industrial parks such as Suzhou and Kunshan, more foreign-invested or Taiwan-funded auto parts companies can be found. Shanghai's parts and components companies are basically in joint ventures, and they are gradually controlling the foreign investment in joint ventures or being controlled by foreign parties, or the profits originally belonged to joint ventures, through the procurement of core spare parts. Was layered out to foreign companies. The remaining parts and components companies that have not been joint ventures have gradually embarked on the path of bankruptcy. Shanghai has even had a department to take over these companies.

In some areas, the collapse of local parts companies is even more alarming. “In the beginning, the scale of domestic companies that used car instrumentation was still relatively large, but it was not an acquisition or a joint venture with the people; the same is true for storage batteries, and the entire industry has lost its position; the gear factory has also collapsed in large numbers.” China Automotive Industry Consulting According to Chen Guangzu, a member of the committee and the Ministry of Commerce’s automotive industry damage warning expert.

The foreign investment in the local parts companies is still continuing, and it is directly penetrated into the local parts and components companies. It is simple, quick, and low in investment. Many state-owned parts and components companies are rushing to withdraw state-owned capital. Some of these state-owned enterprises have already achieved the top three positions in the industry. For instance, Jiangsu Tianbao Technology Co., Ltd., which mainly serves as car audio, is the leader in the industry, and is newly adopted by Visteon. Acquisition. In the new wave of state-owned assets ebb, due to the tendency shown by government departments, foreign capitals have advantages over domestic-funded enterprises in the process of acquiring state-owned assets.

In addition to foreign-funded parts and components companies in the acquisition of state-owned parts and components companies, some pure capital is also looking for opportunities to invest in auto parts and components in China. Beijing has a U.S. fund and is actively looking for a component company with investment potential in China. According to an industry insider who has also done similar investments, the final buyers are mainly foreign parts companies such as Delphi and Visteon.

Car analyst Chen Wenkai pointed out that the main market for auto parts in China is still in the OEM sector, as China's auto ownership is still limited, and the size of the aftermarket is not enough. As we all know, the current parts OEM market is basically monopolized by foreign parts companies. .

According to incomplete statistics, foreign investment has accounted for more than 60% of the Chinese auto parts market. Some people even estimate that foreign investment accounts for more than 80% of the car parts market. In high-tech areas such as automotive electronics and engine parts, foreign-controlled companies are as high as 90% or even higher.




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