The parts industry has a longer history than the entire vehicle industry, but its slow pace of development has almost made people overlook its existence. However, this easily overlooked industry has great potential. According to statistics, in 2003, the sales revenue of China's auto parts industry was 300 billion yuan, accounting for about 1/3 of the total sales of the automotive industry.

However, so far, the parts and components industry has not shown a clear development path like the production of complete vehicles. Although the production of domestic parts and components is considerable, the overall scale is not large. Tian Yushi, General Manager of FAW-Fuzhou Automotive Parts Co., Ltd., said in a full-fledged sense: “Under the current situation, it is difficult for our country to develop the parts and components industry. Even if it starts in a difficult situation, it is difficult to form an economic scale.”

Tian Yushi said: “Parts and components companies that have truly earned high profits in China are not national brands, but are all foreign brands. Foreign and domestic auto makers have been able to make sudden investments in order to win profits, and foreign companies have directly brought component manufacturers to China. While launching new models, the company has forcibly followed up a large number of parts and components companies, which has dealt a considerable blow to the Chinese parts and components industry."

He believes that foreign companies pose challenges to China's parts and components companies in terms of procurement strategies, development capabilities, etc. Parts and components companies can get a few spoonfuls of information in the future of automotive electronics. It's hard to say.

Information from the Ministry of Commerce shows that in 2003 China’s auto parts import amount was far greater than the export amount, and the trade deficit reached nearly 3 billion US dollars. A person in charge of the China National Association of Machinery Industry Enterprise Management said that the parts and components purchased by foreign manufacturers in China are generally low in technical content, and the continuous expansion of the domestic vehicle market, especially the prevalence of CKD assembly, has resulted in a huge number of core components. Import demand. In 2003, the import amount of gearbox was as high as USD 860 million and the number of engines was 374,000.

In terms of development capabilities, China's current products that have entered the international auto parts supporting system are still mainly concentrated in the front suspension and rear axle sections of the car, and there is basically no electronic control technology that represents mainstream new technologies. Almost all automotive electronics products are from joint ventures and imported products, which has become a bottleneck restricting the upgrading of the automotive industry. "The gap between us and foreign companies is not two days a day," Tian Yushi said. At present, most parts and components companies in China do not have the capability to produce products with high added value and high technology content. Such as electronic products, fuel injection systems, active and passive safety systems, steering systems, sensors, brake systems, and the production of these components are controlled by foreign companies. “The products that Chinese parts and components manufacturers really can independently develop are only stereos and horns.”

Tian Yushi said: “At present, the development of the vehicle is excellent, but the spare parts companies have a smaller and narrower living space. Faced with the challenges of the international market, we are miserable.” China's spare parts companies and foreign parts companies The competition is far from a horizontal line. Tian Yushi used the following words to describe the relationship between the two: "Let a two-year-old child come to power and a young man in his twenties and thirties to fight." Can that be done? But if you beat it, you have to fight it. "It is always better to take the initiative than to attack passively."

Lack of game rules, illegal operations, and inability to maintain rights are all problems faced by Chinese parts and components companies. With so many difficulties, how spare parts companies should survive? Tian Yushi said that the first focus on research and development. If you can't develop it yourself, you have to find a partner. In the cooperation agreement, you explicitly write this piece of R&D. The second is structural adjustment. The third is to march to the modularization. Keep up with the first step, and follow a few steps. Then think of ways to learn. It is impossible to think beyond the lead in the beginning. The fourth is to take the brand road. In view of the current status of “participation, chaos, and difference” in domestic parts and components companies, mergers and reorganizations have become a real need in front of many parts and components companies.

“As a parts and components company, you can't complain about your own origins, you can only rely on self-reliance. Tears are useless, and the market economy is weak. The way out for auto parts companies is to unite, integrate resources, adjust product structure, don’t you produce this, I also produce this, chaos to compete. To unite and cooperate, hand in hand to tide over difficulties!"



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