The author has listed the rapid development of the automotive parts manufacturing industry in some developing and developed countries. Can we find some inspiration from this? Look forward to borrowing the stones of other hills to attack the jade.
India's auto parts manufacturing industry has implemented cost priority
Almost all of the global auto giants have already purchased parts in India. Among them, the local component manufacturer "Hi-tech Gears" has become a global supplier of parts for Germany's "Robert Bosch International". The current annual amount has exceeded US$1 billion. The Indian Automobile Parts Manufacturers Association expects that the country’s auto parts exports will reach 20 billion U.S. dollars within 20 years. The previous fiscal year (as of the end of March 2006) has increased from 578 million U.S. dollars in the previous fiscal year to 800 million U.S. dollars, an increase of 38%. The advantage of India's auto parts industry development is that in addition to the low cost of India's auto parts industry, it has technological advantages in the areas of process, product and equipment engineering. Indian process technology can be applied to the reorganization of production processes, making the process more labor-intensive and less capital-intensive, thus significantly reducing the overall cost of multinationals. For example, the "de-automated" production process used in Western factories can reduce the overall manufacturing cost of certain components by up to 20%. In the area of ​​product design, India's advantage lies in the cost reduction through design.
In addition, Indian manufacturing workers have cheap wages and high quality. Manufacturing standards are among the highest in emerging countries. Indian rubber, steel and other raw materials are not expensive.
South Korea's auto parts manufacturing industry strives to balance prices
With the support and assistance of foreign-funded enterprises, Korean SMEs have gradually emerged from difficulties and greatly improved the quality of their products. In contrast, Japan, the main competitor, has been unable to compete with South Korean manufacturers because of the high cost. Nissan’s parts prices have a great advantage in terms of product prices, but they are inferior to Korean parts in terms of parts design and performance. . Therefore, South Korea found a perfect balance between high quality and high prices in Japan and low quality and low prices in China.
Another major reason for the rapid development of the Korean auto parts industry is the recent strong performance of domestic automakers. Hyundai and Kia are firmly backed by these Korean automakers. The auto parts manufacturing industry in the country can perform so well.
United States auto parts manufacturing "parallel" independent management
U.S. merging of roads with plants is a classic. GM took out its own parts and components company and launched a Delphi. As a result, not only has the benefits soared, but it has become the largest manufacturer of parts and components after its independence. Ford is like a point. The Visteon that came out also followed. The two companies have annual sales of nearly 50 billion U.S. dollars and have been the top two in the component industry. The top 50 multinational large-scale parts and components companies, 19 in the United States, can fully meet the needs of most of the world's automakers. These parts and components companies in the United States operate independently according to "parallelism."
Japan's auto parts manufacturing industry conducts "guild-style" links
After the war, Japan proposed a "rejuvenation plan" for the manufacturing industry. In the automotive industry, it only provides funding and policy assistance to companies ranked in the top three; through a unified plan for the development of the automobile and parts industry, it strives to cultivate a batch of Competitive companies, then extend downwards. Most manufacturers in Japan have “guild-style†links with the parts and components companies. For example, Toyota and the first-tier parts and components trader organization have the “Shenfeng Associationâ€, and the second-level parts and components trader organization has the “finefeng associationâ€. Layers of supporting companies perform their duties, a bit like a pyramid.
Centralization and Integration Are the Only Way out for China's Auto Parts Industry
Learning from the experience of the development of foreign auto parts industry, centralized integration will be the only way out for the auto parts industry in China. For countries with important parts and components (such as engines), countries can establish entry barriers to prevent low-level duplication and excessive abuse. In the sales of parts and components, the country encourages the establishment of parts and components sales consortium, establishes a sales network including e-commerce, combines logistics companies, and forms some large-scale parts sales groups. Diesel engine parts have now been built into a diesel engine parts consortium, which has a certain role in promoting the development of the diesel engine parts market with price self-regulation and market orientation. According to officials from the Economic and Trade Commission, the state will set new standards in a few years, integrate the total component parts factories into 2 to 4, and others will divert to the second and third-tier supporting plants, and then develop labor-intensive components such as brakes. Discs, friction materials, etc., to address the employment of diversion personnel. As for those standard parts with large batches, small amounts of bicycles, and complicated technologies, such as rubber gaskets, they no longer emphasize domestic production and can be directly imported.
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