It is imperative to produce independent research and development that restricts the development of the automobile industry according to the plan.


With the increasingly fierce competition in the domestic automobile market, the competition in the other main battlefield parts industry of the auto industry is also infinite. With frequent tariff reductions, cost pressures caused by competition in vehicle prices, and the gradual realization of new global procurement rules, the domestic parts and components industry is experiencing unprecedented pressure. While the domestic auto industry is developing rapidly, how the parts and components manufacturers strengthen their own R&D and reduce their costs and increase their competitiveness has become a top priority for the parts and components industry.

"Production according to plan" restricts the development of the industry

For a long time, China's spare parts industry has been attached to the entire vehicle, and the production of various companies has always been based on drawings provided by the vehicle manufacturer. According to relevant statistics, when Santana first came to China 22 years ago, domestic parts and components companies were able to provide only tires, radios, horns, external antennas, and small signs, which accounted for only 2.7% of their total parts.

The long-term “production by map” of China’s parts and components industry and the close matching relationship between parts and components and OEMs formed due to historical reasons have caused China’s parts and components industry to continue to grow in size for less than 20 years. Weak ability.

According to statistics from the China Association of Automobile Manufacturers, in 2004, the annual sales revenue of the world's auto parts giant Bosch reached 41.148 billion U.S. dollars, while the annual sales revenue of the domestic components boss Wanxiang Group was only 20.8 billion yuan. Less than one fifteenth of Bosch.

"Production according to plans" is also offsetting the cost advantage that China's parts and components industry was originally proud of. According to relevant sources, the average matching price of domestic auto parts for the Shanghai auto industry in China is currently 35% to 40% higher than the FOB price (FOB price) in the international market. If the current production scale and level are maintained, most domestic parts and components companies will only maintain low profits after the transition period of WTO accession, and more than one-third of the companies will face losses or survival crisis.

At the same time, due to continuous price wars by domestic vehicle companies, the procurement costs have been reduced year by year, and the pressure on parts and components companies has become greater, and profit margins have become increasingly thin. And foreign competitors have not lost the opportunity to initiate challenges. According to incomplete statistics, there are currently more than a thousand foreign-invested parts and components companies in China, and internationally renowned auto parts companies such as Delphi have established joint ventures or wholly-owned enterprises.

"Without a strong component industry, there can be no strong automobile industry." For China's auto industry, which is growing up, both domestic and foreign markets need a strong auto parts industry as a support. In this regard, Wang Bing, vice president of Changan Ford Technology, said bluntly: “The current time for the domestic auto market to put new cars is 6 to 8 months later than that of foreign mature markets, and it takes 2 to 3 years five years ago. Several years later, Domestic and foreign markets will truly achieve simultaneous listing. In a few years, China’s auto market will truly become the benchmark of the world market and guide the trend of the automobile market. This is true of the entire vehicle industry, especially in the parts and components industry, and this will surely be zero for China’s auto industry. The development of the component industry puts forward higher requirements."

Independent research and development are imperative

If we say that China's spare parts industry's traditional "production according to plan" can no longer meet the increasingly severe market competition, then strengthening the independent research and development of the spare parts industry will become an inevitable requirement for China's auto parts industry to further enhance its competitiveness.

In fact, the “production by map” model at the current stage of China's spare parts industry is only a “special case” of the development of the world's spare parts industry. From the perspective of development trends, the foreign auto parts industry has the new features of organizational grouping, high technology, supply systemization, and business globalization. Among them, global procurement of parts, system support, and module supply have become the trend.

It is understood that the auto parts production rate of major automobile manufacturers in the world is about 30%, such as 38% for Ford, and 34% for Chrysler. The remaining parts are purchased globally with product quality, price, and supply conditions. The international components industry giants supporting them all participated in the simultaneous development and design of these automobile plants, supplying serialization, modularization, and supporting products according to the needs of the entire vehicle, achieving simultaneous development and even advance development. Therefore, in this sense, China's parts and components industry has the ability to participate in the global procurement system of multinational auto companies only if it forms an independent research and development capability.

It is worth noting that, for China's parts and components industry, if we want to acquire the capability of independent research and development, we must get rid of the existing "production according to plan" model and build a new type of cooperation relationship between parts and vehicles. Some young companies with a high starting point have initially achieved this. Recently, Ford Motor Co., Ltd. has further promoted the "Ford C3P System" among more than 200 suppliers of Changan Ford, a joint venture company. According to Wang Bing, the Ford C3P system is a software management system developed by Ford Motor Company for vehicle R&D. Parts suppliers can exchange data with Changan Ford and Ford Motor Co., Ltd. Synchronous design changes or technological changes will also significantly reduce R&D costs while enhancing their own design R&D capabilities, thereby enhancing the competitiveness of suppliers in the parts and components industry.

In fact, the relationship between parts and vehicles is “a relationship between the lips and the teeth.” Only the auto parts R&D capabilities of the parts and components companies have been improved, and the automaker’s independent innovation can have a leap forward. According to Wang Bing, through the C3P system, Ford and its suppliers have shortened the development period of a new model from the original 36 months to 12 to 18 months. The late stage of development of a new vehicle involved a 50% reduction in modification, and the prototype vehicle was manufactured. And testing costs have also been reduced by 50%, saving $200 million in development costs and increasing the return on investment by 30%. "And Changan Ford introduced the C3P system, is to enhance the research and development capabilities of suppliers, strengthen Changan Ford's own R & D, and ultimately increase the value of the entire supply chain, to achieve a real win-win situation."


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