Xinhua News Agency, Changchun, July 12 (Reporters Lang Qiuhong, Wang Yufei) Recently, the "The 3rd China Changchun International Automotive Parts and Accessories Fair" closed in Changchun. The first Sino-European Auto Parts Fair was also successfully completed as an important part of the exhibition. The exhibition “pay equal attention to the exhibitionâ€, and attracted more than 1,000 companies to participate in the context of the international auto giant’s purchase of low-cost national components. However, from the signing of the show, the situation is not very optimistic. Although huge purchase orders have brought opportunities, they have also brought enormous challenges to Chinese companies.
According to Long Zhuo, Director of the International Exhibition Department of the China Council for the Promotion of International Trade (CCPIT) Changchun Branch, during the China-EU Auto Parts Fair, Chinese auto parts companies signed a total of USD 1.3 million in investment and procurement contracts with foreign companies. Among them, the French Adeciance Convention and Exhibition Group has signed upfront investment contracts of 500,000 US dollars with companies such as Ai Houk and Tai Wu, and Chinese companies FAW Fool and FAW Sihuan; Canada’s Ribeir and the Chinese side The company signed a $700,000 contract. This figure may be a big number for the organizers who first held such exhibitions, but this figure is not large relative to the huge international parts procurement market. According to statistics from relevant departments, multinational companies plan to purchase 50 billion U.S. dollars worth of parts and components in low-cost countries by the end of 2007, 70% of which target Chinese companies.
Changli Fuao, an engineer at Johnson Controls Automotive Trim Systems Co., Ltd. Hao Liyuan, said that the major purchases were sporadic purchases and that there were not many large orders. “The market is certainly big. The key is how much you can compete for,†said Jia Xinguang, chief analyst at the China Association of Automobile Manufacturers. “The United Nations also has huge orders every year, but how much can China get? The same applies to spare parts. International parts procurement The market is huge, but it is hard to say whether Chinese companies can meet the needs of international procurement."
Jiang Lei, vice president of the China Association of Automobile Manufacturers, believes that there are too many parts and components companies in China, but the overall scale is too small. Most companies do not have the capacity for independent development and lack the competitiveness in domestic and foreign markets. Compared with the top 100 auto parts suppliers in the world, the sales revenue of China's top 100 companies is ten times worse than that of the world’s top 100 auto parts suppliers. The sales revenue of China's leading parts and components companies in 2005 was 25.2 billion yuan, and the sales revenue of multinational giant Bosch was 49.7 billion US dollars.
Jia Xinguang said that international parts procurement requires three strict requirements: quality, price, and delivery date. On the surface, looking at these requirements is very simple, and it is actually difficult to achieve. The quality requirement is actually the best in the world; the price is not the lowest, but the most competitive; the delivery time is very strict, instead of handing in 100,000 and 200,000 at once, but it is going to be 100 today. Tomorrow requires 200, different specifications, different types, and timely delivery on a global scale, with high requirements for the logistics distribution system. These three requirements require that many domestic companies still fail to achieve it.
In this exhibition, Bua from the French Alesund company said that he brought huge orders, but he does not need to produce a single product parts factory, but to find a higher level of technology, can be integrated production , manufacturing "module" companies. "If we can't find it, we will consider providing technical support to help Chinese companies build a factory in China."
According to relevant department statistics, in recent years, the joint-venture of parts and components joint ventures has become obvious. There are also many international giants of parts and components that have adopted direct methods to set up factories in China. In the first half of this year, more than 10 multinational companies established new production bases in China, and more than 90% were wholly-owned enterprises. The joint venture will change from a shareholding to a controlling share, from a joint venture to a sole proprietorship, and from a market share to a monopoly market, which will result in huge profits flowing into the pockets of multinational companies. "So, Chinese companies can't be blindly optimistic, and opportunities are fleeting, so we must seize it." Jia Xinguang said that if China's spare parts companies want to get a foothold in the international market, they need to be bigger and stronger.
The first problem for Chinese parts and components companies is to achieve large-scale production. Changchun Fuao - Johnson Controls Automotive Trim Systems Co., Ltd. mainly provides support to FAW Group. The company's engineer, Hao Liyuan, said that a considerable number of companies in China have no worse product quality than their counterparts in the world. They all implement ISO 9000 and ISO/TS16949 standards and have participated in various international certifications. However, due to the impact of OEMs, the scale of production is not enough, resulting in higher costs and the profit rate is declining every year. The automotive industry is a large-scale industry. Even if the profit margin is low, if the scale goes up, it will make money. If the scale does not go up, there will be a big difference between the price and the cost and not much money. Therefore, the formation of a relatively large scale of production is a top priority for domestic manufacturers.
Second, we must strengthen independent innovation. Jia Xinguang believes that in the past China did not pay enough attention to the parts and components industry. According to international standards, the ratio of investment in the vehicle and parts industry should be 1:2 or 1:3. The proportion of China’s investment in this industry is contrary to international standards, which directly leads to low levels of parts and components in China and slow development. Judging from this exhibition, the major exhibits are still low-value-added, high-manpower and raw-material-consumed products, and are concentrated in low-tech products such as hubs, brake discs, and windshields. The foreign parts manufacturers have realized simultaneous development with the whole vehicle, and Dr.'s companies in China have already established a test factory.
The third is to quickly integrate into the globalization system and go out. Enterprises should change their concepts and do not put their time in the relations between Latin America and China. Jia Xinguang said that he is familiar with a domestic parts and components company, managers carry a host factory leader "contact map", all thoughts of how to give gifts, contact feelings. Such "go back door" is not to enter the international market.
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