China’s auto parts industry is to enter the integrated development

China’s auto parts industry is to enter the integrated development stage in 2013

Because of China’s auto parts market has certain regional barriers, many factors are hindering the development of the industry, open the auto parts market to foreign investment will lead to the market re-segmentation, lead the industry into a new stage of integration.- Commerce Circulation Productivity Promotion Center auto industry researcher Tie Zhihai said.

It is understood that there is a large number of own brand automotive parts manufacturers, but most of them are small-scale, lack of innovation capacity, development means are relatively backward, poor overall level, in the area of high-tech components, its dependence for multinationals is high.

It is worth noting that the post-market auto parts are mainly in joint venture (analog automobile companies). Foreign investment needs market and policy support to set up factories to occupy the domestic market, which determines the foreign-funded enterprises need to cooperation and localization to resolve business risks. So, Independent brand auto parts enterprises are not only able to obtain the joint venture development opportunity, it will also be looking to their own development opportunities in the long-term development.

On the one hand, the booming foreign capital brings greater challenges, but on the other hand, it provides a new opportunity for the development of local enterprises. Therefore, Tie Zhihai said local enterprises should draw on the over years lessons learned “market for technology”, pay more attention to the digestion and absorption of foreign technology, improve their viability, beware of instant success, and blindly copying, survive in the competition and achieve greater development. At the same time, in order to achieve development, China’s auto parts enterprises must form a group of scale advantages as with other industries, cultivate leading enterprises is the only way. In addition, accelerate structural adjustment, and integration of resources without delay, otherwise, it will be possible to lose living space in the competition.

The experts said that the independent brand auto parts enterprises should actively respond to the two cases. On the one hand, made corporate mergers and acquisitions, joint ventures as the first measure to defense foreign brands impact, to guarantee the stability of the enterprise market share; On the other hand, enterprises should actively imitate and thus independent research and development and to expand its own production capacity, improve the competitiveness of enterprises, to ensure that expanding scale in the medium-and long-term development of enterprises.

It is reported that, issued by the National Development and Reform Commission, the Ministry of Commerce, -Foreign Investment Industrial Guidance Catalogue (2011 Amendment)” has transform the encourage focus from -Vehicle manufacturing- to -The key components manufacturing and R & D”, what’s more, it cancelled some fields limit of foreign investment shares, there are 11 entry less than the original directory.

Experts said that, from the introduction of the vehicle manufacturing to manufacturing and research and development of key components, the policy is changed. From an industry perspective, steps in accordance with the foreign investment, China’s auto parts industry will be have two changes: First, the market structure will change, once liberalization of investment, foreign products market will continue to expand; Second, China’s auto parts manufacturing enterprises will face long-term integration, industry consolidation will lead to enhance the overall competitiveness of China’s auto parts industry.

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