In recent years, the domestic automobile industry has developed rapidly. Major cities have established their own automobile cities, from Changchun in the northeast, Beijing, Chongqing in the west, Wuhan in the central part, Shanghai and Hangzhou in the east, Guangzhou and Shenzhen in the south All of them have established their own automotive industry bases, but they still need to import transmissions and engines for the core components. This has led to the assembly of the Chinese auto industry, which does not have the capability for research and development and technological innovation, which will hamper the future. The development of the domestic automotive industry. High reliance on import of domestic auto parts core components At present, joint-venture brand cars have moved the production of engines and gearboxes into the country, which has reduced the logistics costs and improved the profitability of the models. But even with the joint venture's engine and transmission production, its core technology is almost always controlled by foreign parties, and the joint venture automobile company's China has absolutely no ability to develop and produce its own engine and gearbox. Perhaps, some people may say that in today's international production, there is no need to establish their own parts and components supporting enterprises, even if the engine and transmission and other components can also be imported or purchased and re-assembled. In fact, in the event of a change in market conditions, the price increase of parts and components companies will lead to complete passiveness of auto vehicle companies. Vehicle manufacturers that rely entirely on imports or purchase components will seriously weaken their profitability. This is why Geely and Geely are willing to spend huge sums of money to acquire Australian transmission company DSI and settle in Xiangtan. At present, there are few companies that have the ability to produce engines and gearboxes in domestic auto brands, even though Geely's acquisition of DSI is still at the construction stage. There are not many independent brands with engine production capabilities. Only Brilliance, Geely and Chery have their own engines. BYD, Changan and other independent brands all rely on the purchase and import of engines. As the single-player core components of the automobile vehicle industry, engine and transmission, as well as chassis and body design, there is no core competitive advantage, and future market competition will be very passive. However, in order to actively develop the entire vehicle business in major cities in China, it neglected the follow-up of the auto parts industry and led to three major problems in the current auto parts industry in China. More than 80% of China's automobile parts and components companies have sales revenue of less than RMB 100 million. Dispersed industries, small scale, and low production concentration are the fatal biggest weaknesses in the development of the industry. Most auto parts companies in China are mainly engaged in machining. The added value of products still needs to be improved. Many auto parts companies have relatively weak ability to co-ordinate parts and components. In China, less than 43% of auto parts companies own patents, and less than 20% of them own invention patents. About 80% of domestic automotive technology patents are mainly applied for utility models, and there are few patent applications for inventions. Although most high-tech products have already achieved localized production, core technologies do not have much control. Urgently Needs to Enhance R&D and Production Capacity of Domestic Core Components The profit distribution of the international automobile industry chain is about 5:3:2, that is, the parts and components companies account for about 50% of the total profits of the automobile industry chain; the vehicle production companies account for about 30%; and those engaged in automobile trades receive about 20% of profits. However, due to the large number of parts and components companies in China, and the inconsistency in the overall vehicle and bargaining power, the average investment return rate of the parts and components companies is lower than that of the entire vehicle, that is, they are arranged in descending order of rate of return, followed by automobile trade. , vehicle production, auto parts. The lowest profits of auto parts have led to the unwillingness of governments and enterprises to invest in the production of auto parts, especially the lack of technology and production capacity in the production of core parts and components. Today, it has led to the embarrassing situation of independent brands carrying imported engines and transmissions. Even at present, independent brands have debuted their hybrid or electric car concept cars, but these core technologies are all purchased from an auto parts company. At present, only one company has the ability to support them. In fact, the rapid development of the Japanese auto industry is worth learning from. After the war, Japan formulated a plan to revitalize the auto parts industry and took the lead in actively developing the parts and components industry. In particular, the core parts and components have been the first to develop. This is to compete with North America in time. With price advantage. Domestic self-owned brand cars can only enter the low-end market, because the core components need to be purchased, resulting in very weak vehicle profits. The long-term development of China's auto vehicle industry is the key to swiftly enhancing the R&D and production capabilities of the domestic core component industry. Oxygen Generator For Filling Cylinder Oxygen Generator For Filling Cylinder,Hospital 10Nm3/H Oxygen Generator,Medical Oxygen Generator 20Nm3/H,High Purity Oxygen Generator Station Jiangsu Minnuo Group Co.,Ltd , https://www.mnuogroupcn.com