China's auto parts industry "youth power" charm bloom

The ancients said: Twenty weak crowns, thirty standing. People in the youth stage are full of challenges and opportunities. At this stage, young people are full of vigor and enthusiasm. It is the most glorious life in my life. The upcoming May 4th Youth Day is not just a festival that celebrates youth and dreams. More represents a change and innovation. Today, China's auto parts industry is at this stage.

Auto parts industry "chaos" far from forming

China has become the world's largest automobile production and sales country. However, "first" does not mean the strongest, and the development of weak and small parts is a major constraint. Components are the upstream of the vehicle and are the direct users of raw materials and basic machinery components. Therefore, the development level of auto parts directly reflects the industrial level of a country.

Statistics show that there are more than 5,000 non-state-owned parts and components companies with sales revenues of more than 5 million in China, together with village-run enterprises, small non-state-owned enterprises and small family workshops, and nearly 10,000 companies are active in the auto parts market. Product quality and corporate quality can be described as chaotic. Sitting on the two major advantages of low labor costs and large vehicle demand market, it is regrettable that China has not yet appeared large-scale auto parts companies.

A few days ago, the giants of global auto parts companies joined hands to signal that the competition in China's auto aftermarket is heating up. If there is no active domestic spare parts company, the space for survival will become increasingly narrow.

The auto parts industry takes a heavy responsibility

The development of China's auto industry cannot be just a complete vehicle. The core components and components are in urgent need of supplementary courses. Chinese auto companies are faced with the need for upgrading of technology and brand competition, and the rapid expansion through mergers and acquisitions has gradually become a new development method.

Most of the auto parts companies in China are relatively young. China's auto parts industry is faced with a weak foundation and is struggling in the development process. However, it is in such an environment that China's parts and components industry is still rejuvenated with its unique “charm of youth”.

Some of China’s leading parts and components companies already have a clear sense of “strength”.

First, establish its own brand of core technology and key components. Improve product brand value and core technology. Defects in technology and management have determined that the road to brand building of many auto parts companies in China is difficult and bumpy. At least some parts and components companies already have such awareness. It is believed that China's auto parts market will also change.

Second, a global financial and debt crisis that has swept the Chinese auto companies lacking well-known brands and core technologies is a golden opportunity. Started with a clear strategic intent to conduct mergers and acquisitions, improve its product line, and obtain channels and brands. In this process, companies must gradually cultivate some core competencies, establish a complete M&A integration management process and a strong management team and execution team.

The next decade is the golden decade for the development of China's auto parts and components, and it is also a key decade for China's auto parts companies to “strengthen”. We have reason to believe that after a continuous baptism. China's auto parts companies will certainly be "brilliantly blooming" in their most beautiful years.

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