The first China International Auto Parts Expo was held in Beijing on November 29th. Nearly 6,000 professional merchants from 88 countries and regions including the United States and Germany attended the event.

People in the industry pointed out that auto parts, as the foundation of the auto industry, are necessary factors supporting the sustained and healthy development of the Chinese auto industry. Although China has stepped into the world's largest automobile manufacturing country, it is not yet a car manufacturing country.

It is understood that China’s auto parts companies’ R&D investment currently accounts for only about 1.4% of sales revenue, far below the average of 5% for multinational companies. Even the Wanxiang Group, which ranks first among China's spare parts companies, has a sales gap of more than 10 times that of the world’s top 100 auto parts suppliers.

According to the national “Eleventh Five-Year Plan” requirements, we will form independent research and development and technological innovation capabilities as soon as possible, and participate in the cooperation and competition of the international auto industry to a deeper extent, and we will initially build a major auto parts manufacturing base in the world.

What is the breakthrough of Chinese auto parts enterprises?

It is understood that the current model between auto parts suppliers and OEMs is mainly the parallel supply model represented by the United States and the European Union, and the tower development model represented by Japan and South Korea.

In the former model, there is no definite restriction relationship between OEMs and parts factories, and parts and components companies can independently develop products; under the tower development model, OEMs have a clear supporting relationship with first-tier suppliers. .
In recent years, these two models have been brought into China by multinational automotive companies. When Volkswagen enters China, more than 100 original manufacturers have established plants in China; Guangzhou's car parts and accessories market is almost monopolized by Japanese capital; dozens of Toyota's supporting companies have settled in Tianjin; dozens of former Hyundai's supporting companies have settled in Beijing. In Shunyi, most of the local parts and components companies are marginalized.

Yang Weihua, Asia-Pacific marketing director of Visteon, stated that Visteon has provided Chery products and exemplified the cooperation with Chery Automobile. The excellent auto parts suppliers have to “help automotive manufacturers develop products”.

“The development of China’s self-owned car brands has grown from small to large. For independent companies such as Chery Automobile, the development strategy is first of all domestically produced and then produced; then the third step is to redesign and fill gaps.” Yang Weihua said: “This is Require market-oriented, planned and step-by-step product development. As a component supplier, we should help companies understand the market, especially the international market, and achieve product export.”

According to the technical experts of Shanghai Automotive, in recent years, Europe, Japan, South Korea, Russia and other countries are very optimistic about the market prospects and environmental benefits of dimethyl ether fuel vehicles. China's research on dimethyl ether engine is almost in sync with the international. In addition, Shanghai GM’s hybrid sedans have entered the final stage of industrial development and are expected to be put into mass production in 2008.

"China will become a testing ground for new product ideas, especially in the automotive electronics field," Yang Weihua said.

Yang Weihua also believes that China's auto consumption level is becoming more diversified, and the future consumer groups will expand to the secondary and tertiary markets. In the development of automotive products for urban and rural consumers, Chinese auto parts companies have more advantages.



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