The position of the auto parts industry is becoming more and more important
The auto parts industry provides corresponding parts and components for the automobile manufacturing industry, including stamping products, injection molded components, etc., which is the foundation of the development of the automobile industry and an important part of the automobile industry chain. With the development of world economic globalization and the improvement of the level of specialization of the auto industry, the position of the auto parts industry in the auto industry is becoming more and more important.
1. The global auto parts industry is concentrated
As the production and operation of major multinational automobile companies shifted from the traditional vertical integration and the pursuit of large and comprehensive production models to the specialized production model of streamlining institutions and focusing on the development of complete vehicle projects, vehicle manufacturing companies have significantly reduced parts and components. The self-made rate, the establishment of a supporting supply relationship with external parts manufacturing enterprises, and the formation of a specialized division of labor and cooperation model, which have greatly promoted the market development of the auto parts industry.
The more mature international automotive industry market usually has a mature supporting parts market. After long-term development and integration, the mature auto parts market has the characteristics of industrial concentration. Internationally renowned auto parts companies are mainly concentrated in North America, Europe and Japan, including Robert Bosch GmbH and Continental AG in Germany, Denso Corp in Japan, Magna International Inc in Canada, Delphi Automotive in the United States, etc. These enterprises are large in scale, strong in technology and capital strength, and can guide the development of the world parts industry.
2. China’s auto parts industry has formed six major industrial clusters
China’s auto parts industry emerged in the 1950s. In the initial stage, the technological level of auto parts manufacturing enterprises is relatively weak and their dependence on vehicle manufacturers is relatively strong. With the rapid development of China’s economy and the increase of residents’ income, the automobile consumer market has expanded rapidly, laying the foundation for the rapid development of China’s auto parts industry.
The successive promulgation of supporting industrial policies has created a good external environment for the development and growth of China’s auto parts industry. At the same time, the huge potential of China’s auto parts market and relatively low labor costs have attracted international auto parts companies to invest and set up factories in China, which has further promoted the development and growth of China’s auto parts manufacturing industry.
After years of accumulation and development, auto parts companies continue to improve production processes, reduce production costs, and improve product quality. They have greatly improved their technical and production management levels, and have formed a group of powerful parts manufacturing. enterprise. Some Chinese parts manufacturing companies have entered the global procurement system of automakers and have strong market competitiveness.
Auto parts manufacturing companies are usually built around vehicle manufacturers, forming large-scale industrial clusters. In recent years, auto parts industry bases such as Changchun in Jilin, Shiyan in Hubei, Wuhu in Anhui, Huadu in Guangdong, the Bohai Sea around the Beijing-Tianjin-Hebei Region, and Yangzhou in Jiangsu have emerged rapidly. China has gradually formed six major industrial clusters, including: Shanghai and Jiangsu Province The Yangtze River Delta industrial cluster with Zhejiang Province as its core, the Southwest industrial cluster with Chongqing and Sichuan Province as its core, the Pearl River Delta industrial cluster with Guangdong as its core, and the Northeast industrial cluster with Jilin, Liaoning and Heilongjiang provinces as its core. The central industrial clusters centered on Hubei, Hunan, and Anhui Provinces, and the Bohai Rim industrial clusters centered on Beijing, Tianjin, and Hebei Province.
In 2019, under the influence of factors such as the overall decline in the automotive market, the decline in subsidies for new energy vehicles, and the gradual increase in emission standards, component companies faced unprecedented pressure. However, China’s auto parts manufacturing industry still showed a steady growth trend. According to the statistics of the China Association of Automobile Manufacturers on 13,750 auto parts companies above designated size, the accumulated main business income for the whole year of 2019 was 3.6 trillion yuan, a year-on-year increase of 0.35%. In 2020, the revenue of China’s auto parts enterprises above the designated size was approximately 3.9 trillion yuan.
3. In the future, China’s auto parts industry will show the following development trends:
1) The potential scale of the auto parts industry has reached, and the market concentration to further increase
Based on the experience of mature auto markets in Europe and the United States, the ratio of the scale of vehicles to parts in the auto industry is about 1:1.7. At present, there is a certain gap between the scale of complete vehicles and parts in China’s auto industry and the mature auto market. China’s auto parts industry still has a large potential market space. At the same time, with the gradual enhancement of the R&D and innovation capabilities of Chinese auto parts manufacturing enterprises and the gradual enhancement of their overseas market development capabilities, and the gradual improvement of the international competitiveness of their products, China’s auto parts industry will usher in a new round of development.
2) The mature auto parts market to feature industrial concentration
At present, the market concentration of China’s auto parts manufacturing enterprises is relatively low and competition is fierce. In the future, the auto parts industry will accelerate the pace of mergers and acquisitions, integrate and expand the industrial chain, and market concentration will further increase.
The auto parts industry is gradually achieving structural optimization and product upgrades. There are a large number of auto parts companies in China. Except for a few large-scale parts and components companies with strong competitiveness, most of them are small in scale, weak in strength, and insufficient in research and development capabilities. The limited low-end parts market is fiercely competitive.
With the disappearance of China’s demographic dividend and the weakening of labor cost advantages, domestic auto parts companies can only develop in the direction of system development, system matching, and modular supply by strengthening technology research and development, improving product structure, and achieving development in the increasingly fierce market. The environment maintains a sustained competitive advantage.
3) China’s auto parts industry to accelerate its external expansion
The 2008 global financial crisis brought Chinese parts companies a good opportunity for outward development. As the European and American parts and components industries have been hit hard by the global financial crisis, a large number of companies have stopped production, reduced production, or even went bankrupt. Chinese parts and components companies benefited from the rapid recovery of the domestic automobile consumer market and resumed normal operations in the short term. Chinese parts and components companies have tried to seek opportunities for cooperation and mergers and acquisitions on a global scale, while absorbing a large number of outstanding talents in the international market. Expand research and development capabilities.
With the expansion and technological upgrading of Chinese domestic-funded parts and components companies in the international market, Chinese parts and components companies have broad development prospects in the export of complete vehicle supporting markets.