A Comparison of the Advantages of Domestic and Foreign Parts Enterprises in China

According to statistics from the China Automotive Technology and Research Center, China's auto parts production scale has increased from 910 million in 1998 to 3.93 billion in 2007, an increase of 4.3 times in 10 years. At the same time, the scale of China’s automobile production has increased by 5.4 times, and the increase between the two is basically proportional.

According to the statistics analysis of more than 200 kinds of auto parts by Fourin, the proportion of foreign auto parts companies' output in the total auto parts production in China has increased from 28.1% in 1998 to 42.0% in 2007, and it was in 2005. The year reached a peak of 63.1% (see figure below). In addition, from the point of view of production concentration in various automotive components, in 1998, electric window lifters, differentials, intake and exhaust manifolds, and automotive air-conditioning engines and drive systems forged and forged parts, functions, and equipment. The proportion of foreign-funded enterprises producing parts and components is relatively high, while in tires, instrument panels and other areas, the production rate of foreign-funded enterprises was lower at that time.

By 2007, parts such as engine management systems and micro-motors were gradually converted from imports to domestic production, resulting in the monopoly supply of 3-5 foreign-funded enterprises. At the same time, electric window regulators, which were originally monopolized by foreign capital, have gradually declined due to the growth of local auto parts companies in China.

In addition, according to Fourin's research on the production concentration ratio of the top three companies in the spare parts industry in 2005 and 2007 and the production ratio of foreign-funded enterprises, it was found that in these two years, in the areas of instrument clusters, micro-motors, automotive wiring harnesses, and starters, etc. The production concentration of foreign-funded enterprises is further increased, and in the fields of transmission parts, rearview mirrors, valve lifters, and other driveline casting parts and body parts, the concentration of production of Chinese local companies is also increasing.

According to the preliminary results of Gasgoo.com's "Top 100 Most Competitive Suppliers of Auto Parts Suppliers" (started in December 2009), foreign-owned and joint venture companies in engine management systems, airbags, ABS systems, and three-way catalysis Equipment, auto sunroof, air conditioning system, car seat assembly, electric glass lifter, lighting system, automatic transmission, high-pressure fuel pump and other systems and components still have absolute competitive advantage. In these areas, more than 70% of the market share is occupied by foreign capital, and some products are almost monopolized by foreign capital.

However, except for a few high-tech areas where domestic auto parts companies are relatively weak in competitiveness, in most parts and components areas, the growth of domestic parts is very rapid, especially the cost factor in the procurement decision occupies a key factor. Product area. Gasgoo.com's analysis of more than 900 suppliers selected in the preliminary survey found that among 70% of parts and components, local companies accounted for more than 70% of the total, and some products were almost exclusively owned by local suppliers. Such as body parts, gearbox parts, brake pump boosters, GPS, brake pads and other products.