Automotive fears hollowing out high-end auto parts

According to a recent survey, local companies account for more than 70% of the market for 70% of parts and components. Some products are almost exclusively owned by local suppliers, such as body parts, transmission parts, GPS, Brake pads and other products. However, in the field of EMS engine control systems, ABS systems, three-way catalytic converters, automatic transmissions, high-pressure fuel pumps and other ten high-tech automotive parts and components, foreign-funded enterprises have absolute competitive advantages, controlling more than 70% of the market share. Almost all products are monopolized by foreign capital.

Industry sources pointed out that due to the lack of independent research and development capabilities and core technologies, China's own brand components can only use resources, cheap labor to win the market. According to a survey, the profit of bicycles for many Chinese auto companies is below RMB 1,000. In the process of breakthrough in the mid-to-high end market, they were suppressed by foreign brands. The lack of technology and lack of brand power have caused many companies to fail. What is more serious is that while foreign brands stick to high-end, they further explore the low-end car market, making the original brand's original price advantage no longer exist. "If we do not change the lack of core component technology, the future of Chinese auto companies will be worrisome." There are comments that industry experts are worried about.

How to break through the core technology is an issue that everyone in the industry cares about. Xu Hengwu, president of Asia-Europe Power Group, the largest manufacturer of diesel powertrains in Asia, believes that breakthroughs in China's auto industry must be supported by policies, but also rely on breakthroughs by the company itself.

Do not let parts defects drag the hind legs of the automotive industry Dong Yang, executive vice president and secretary general of the China Association of Automobile Manufacturers, said that we must build a strong automobile country and parts and components are the most important foundation. The main problem is that the entire vehicle company has developed rapidly, but it lacks a strong domestic component company as a strategic partner. The high-end component companies are almost wholly foreign-owned and holding companies.