With the globalization of auto parts procurement, China’s auto parts companies have become increasingly prominent in the international market. At the same time, the lacklustre recovery of the global economy, employment pressure in developed countries and the rise of international trade protectionism will bring challenges to the international development of China's auto parts companies.
According to statistics, China's auto parts export business is concentrated in tires, wheels, internal and external trims, etc. The added value of products is low, and in the powertrain, automotive electronics and other fields, can compete with the international component giants on the same stage The business is still relatively small. It is worth noting that most companies have realized the opportunities and challenges brought about by the globalization of auto parts procurement, and strive to achieve product exports, supporting international companies, and upgrade their core technologies through overseas acquisitions or joint ventures.
â– Three major companies leading international business
Among the listed auto parts companies, Weichai Power's international business is leading other companies in both operating revenue and year-on-year growth. In 2013, Weichai Power International completed a turnover of 7.933 billion yuan, an increase of 144.76% from the same period of last year. Last year, Weichai gradually straightened out the management mechanism for overseas companies and realized the transition from cross-border mergers and acquisitions to transnational operations. Weichai not only promoted the successful listing of its KION company in Frankfurt, Germany, but also carried out strategic cooperation with the Ferrari F1 team, which significantly increased the visibility and influence of the Weichai Power International brand.
Junsheng Electronics has gained more recognition from international customers. Last year, Joyson Electronic's foreign business revenues achieved 4.244 billion yuan, a year-on-year increase of 9.5%. Joyson Electronics continues to strengthen its partnership with BMW and Volkswagen to provide a new driving control system (iDrive, MMI) and air conditioning control system. In addition, Junsheng Electronics also has in-depth cooperation with BMW in the field of new energy vehicles to provide battery management systems for its i-series hybrids. North America is the key to the revenue growth of Junsheng Electronic's international business. Junsheng Electronics has won several new projects for GM and Ford mainstream models to increase sales in North America.
Corporate overseas acquisitions are feeding back domestic technology upgrades. After Joyson Electronics acquired Près in Germany, Puri’s China R&D Center was established in China to participate in the development of global projects and began to lead the progress of local projects. In addition, Junsheng Electronics acquired a small software team in Germany in October last year to supplement its strength in automotive electronics software development.
Internationalization strategy of parts and components companies accelerates
Last year, Fuyao Glass's overseas business sales reached 3.667 billion yuan, an increase of 10.09% over the same period last year. In the international automotive glass market, Fuyao Glass has achieved the certification of the major automotive manufacturers in the world, and has established four design centers in the world's major automobile production and sales regions, and has set up logistics centers in the United States and Germany with follow-up integrated processing capabilities. With the successive establishment and improvement of overseas automobile glass manufacturing bases such as Russia and the United States, the international market share of Fuyao Glass will further increase.
â– Connect the international procurement system
In addition to fully understanding the local market, it is most important for component companies to find suitable partners. Last year, Ningbo Huaxiang's international business grew by leaps and bounds. Its foreign operating income was 1.481 billion yuan, an increase of 30.1% year-on-year. The report shows that the acquisition of German HIB company is the main reason for Ningbo Huaxiang's international business growth. At the same time, new orders from companies such as Ford and Volvo are also new growth points for the company's international business.
Ningbo Huaxiang acquired a large number of outstanding customer resources from abroad through mergers and acquisitions, connected with the procurement system of international auto manufacturers, and sought for coordinated development at home and abroad. At present, Ningbo Huaxiang has completed the acquisition of a number of overseas parts manufacturers, including Germany, the United States, and the Czech Republic, and completed the globalized layout while effectively controlling the risks of overseas mergers and acquisitions. In the future, Ningbo Huaxiang will also actively promote its layout in South America, India and Russia.
Cooperative research and development is also a way for companies to go abroad. Central Plains is equipped with engine cylinder liners and bearing bushes as its main business. From 2011 to 2013, its overseas sales amounted to RMB 410 million, RMB 489 million and RMB 511 million, respectively, which accounted for 42.41% of the main business revenue for the same period. 48.18% and 46.34%. The Central Plains internal matching report shows that in order to grasp the opportunities arising from global emission standards, the Central Plains will cooperate with domestic and foreign engine companies and vehicle companies to jointly develop energy-efficient cylinder liners that meet the Euro V and Euro VI emission requirements. Central Plains has been included in the global procurement system of Mercedes-Benz, General Motors, Ford, International Truck, and Cummins.
â– Extend channels to promote tire and wheel export growth
In the main business of tires and wheels in China, international business accounts for a considerable proportion.
Fengshen Tire's foreign business marketing totaled 3.367 billion yuan last year, a slight drop from the previous year, and foreign businesses accounted for 39% of its main business. On November 23, 2013, the Zhengzhou Bangli "Aeolus" train, named for the first time in the company, was successfully launched in Zhengzhou, Henan Province, marking the complete entry of Aeolus Tyre into the European market.
Last year, emerging market demand for tires and wheels in China increased rapidly. Last year, Saiwai's foreign sales amounted to 3.582 billion yuan, a year-on-year increase of 9.65%. Its annual report shows that foreign orders have maintained growth thanks to the consolidation of existing sales channels and new orders from Myanmar, Saudi Arabia and other countries and regions. It is understood that Saiwan has built more competitive overseas sales channels by acquiring controlling stakes in the UK KRT Group and participating in the North American sales network.
S.Getter’s foreign operating income was 3.362 billion yuan last year, a year-on-year increase of 6.5%. For the development of foreign markets in the future, S.Getter believes that since the beginning of last year, foreign export restrictions on China’s tires have only increased. In the future, some countries or regions cannot continue to adopt new trade barriers to restrict Chinese tire exports. This will affect Chinese tires. The business has an adverse effect.
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