Self-owned brand parts companies need to increase their strength to break monopoly


Recently, the National Development and Reform Commission penalized 83.196 billion yuan in the price monopoly of eight auto parts companies, including Japan’s Sumitomo, and fined 4.0344 billion yuan in fines for price monopolization of four Japanese bearing companies, resulting in a total fine of 1.235 billion yuan. Eight auto parts companies and four bearing companies were involved in the implementation and implementation of a price monopoly agreement for auto parts and bearings, in violation of China's "anti-monopoly law" provisions.

Through the recent anti-monopoly investigation, the public only knew how serious the profits of the auto and parts industries were, and at the same time, it also realized that the self-owned branded parts and components companies were weak overall and had little market discourse. According to Guo Jiannan, CCID Consulting's Equipment Industry Research Center, compared with the entire vehicle market, auto parts investment has a longer cycle, higher funding threshold, and greater operational risks. The lack of core technology accumulation is still a part of the self-owned brand parts and components companies. Short board. He suggested that if China's auto parts companies want to get rid of the current market difficulties, they need not only to insist on independent innovation, but also to bravely “go global” and to develop a neutral development path.

The pain of the development of self-owned brand parts enterprises

Guo Jiannan analyzed: “Different from the automobile vehicle market policy, our country has not limited the share of the joint venture in terms of parts and components, which has led foreign-funded parts and components companies to drive forward in the Chinese market. However, there is a lack of policies for the auto parts market. 'Regulation' is only an external reason that causes monopolies in foreign-funded enterprises. The key to foreign-owned parts and components companies being able to form monopolies at home is that they have core technologies, and the biggest gap between domestic companies and their counterparts is the performance of research and development. Insufficient, local parts and components companies are mostly concentrated in low-tech areas with low technological content and low profit levels, and prices have become the only competitive means for domestic companies."

According to statistics, the output value of China's parts and components industry has reached 3.0237 trillion yuan in 2013, and the scale of the industry is very large. There are currently more than 20,000 companies engaged in this industry, but the average output value of each company is only over 100 million, and the funds are insufficient. Small scale, weak strength, lack of scale effect. The competitiveness of China's auto parts industry is mainly reflected in the low-cost labor costs and resource costs, lack of high-end product technology, and lack of research and development capabilities. The survey shows that China’s auto parts companies’ R&D investment currently accounts for only 1.4% of sales revenue, far below the average of 5% for multinational companies. Due to the low level of research and development and the lack of a brand, it is only possible to imitate the production of other people's products at the same time. This has led to the dislocation of the domestic parts and components enterprise market and the lack of sound, and it is vulnerable to the vehicle companies.

In addition, the reporter also learned that in the global procurement of components, modular supply, and the development of neutralization, the independent brand enterprises also lag behind the others.

In accordance with global procurement requirements, vehicle manufacturers must implement component procurement in accordance with the principles of QCDS or QCDD (Quality, Cost, Delivery, Service, or Technology). At present, the overall manufacturing level of China's auto parts industry is low, management is extensive, and cost control is weak. It is unable to adapt to users' requirements for global procurement such as product quality, cost, and delivery date.

Modular supply is a new management concept and business model brought about by global procurement. However, the gap between China's spare parts companies and foreign companies in this respect is still very large, especially in terms of integration and electronicity, due to technology. Lagging behind, with the vehicle companies can only implement the second and third-level matching, it is difficult to enter the ranks of a supporting supplier.

Neutralization development requires that parts and components companies be separated from vehicle companies, and no longer be affiliated with a complete vehicle group in the supply chain, and be market-based and independent. China's spare parts enterprises have been relying on the survival and development of state-owned complete vehicle and main engine plants, and the products are mainly for commercial vehicles. Neutralization will inevitably break the traditional domestic component supply system and supply and demand model, and products and markets will face a new round. Shuffle, huge challenge.

Breakthrough of self-owned brand auto parts companies

Guo Jiannan also suggested that China’s auto parts enterprises should adapt to the requirements of the development of globalization and get rid of the current market difficulties that need to be carried out in three areas.

First of all, we insist on independent innovation, starting with many links such as materials, processes, design, and manufacturing, and comprehensively improve the technological competitiveness of domestic auto parts. Industry companies rely on national policies to support the use of independent development, joint scientific research, and cooperative manufacturing, among others. In the form of upgrading of technology, companies in different stages of development should formulate corresponding technology upgrading strategies based on their own market positioning and goals;

Secondly, domestic parts and components companies can “go global” or establish R&D institutions abroad, or acquire technology and experience through mergers and acquisitions and cross-border cooperation. In the current situation where some companies with strong technical forces in Europe and the United States face financial difficulties, the self-owned branded parts and components enterprises should actively seize the opportunity, use funds rationally, actively go overseas to purchase advanced technologies, and then continue to research and implement technologies in production practices. Improve, integrate resources, adjust product structure, and improve the company's own technology research and development capabilities;

Finally, taking a neutral development path, self-owned brand parts and components companies should actively create conditions to obtain the third-party certification of the TS16949 quality system standard as soon as possible, and get the “tickets” for entering the global procurement of parts and components, and reverse the long-term lag of parts and components in the vehicle. The passive situation of development is fully integrated into the global parts production chain and the procurement chain.



Aluminum sand casting production technology process:

Aluminum sand casting production technology process

The precision of the Aluminum sand casting: ±1mm;

Smoothness of surface of rough part: Ra6.4;

Shrinkage rate of aluminum sand casting products: 2%;

Material wastage rate: 7%;

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Aluminum sand casting production


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