Auto parts industry shuffling domestic brands "breakout" soon


The data shows that China's auto parts industry is already the fifth largest supplier of US parts. It is estimated that during the "Eleventh Five-Year Plan" period, China's spare parts market will reach an annual growth rate of 35%. Before 2010, China’s exports of parts and components will reach US$40 billion.

Industry sources pointed out that at present, more than 70% of multinational component giants have gathered in China, bringing severe tests to local parts and components companies.

Auto parts global market reshuffle

In recent years, in the parts and components system, international giants such as Mitsubishi, Bosch, Delphi and Visteon have all expanded overseas and have impacted China's zero industry. Since 2005, General Motors has reduced the number of its 1,700 suppliers worldwide by 500. Delphi also plans to reduce suppliers from 4,000 to 700-900. Relevant persons judged that the current international is facing a new round of automobile industry transfer. In order to break the unbalanced competition structure, the supply chain of multinational auto companies began to loosen, and the supplier system is changing. Realize local and regional production for global production and form a new batch of automotive industry clusters.

Domestic brands improve competitiveness

The investment in R&D of China's auto parts companies currently accounts for only about 1.4% of sales revenue, far below the average of 5% for multinational companies. The shortage of research and development funds directly led to the backwardness of R&D facilities, resulting in weak research and development capabilities. The lack of development capacity and the lack of competitiveness of self-owned brand products have seriously hampered the enhancement of the international competitiveness of auto parts.

The entire vehicle includes tens of thousands of parts. If the key parts and components do not have their own brands, the development of the national car companies will still be subject to control from time to time. However, it is possible to achieve breakthroughs in a certain area so that key components can not only be self-sufficient but also face global supply. It is a very large market. Some experts emphasized that the domestic parts and components industry must form its own characteristics and brands, and achieve scale operations, in particular, it must closely cooperate with the entire vehicle company brand building strategy, through joint cooperation, improve competitiveness, and gradually build China's auto parts products "cost, Quality, high-tech "class A image.

The "Eleventh Five-Year Plan" requires that China's auto parts industry should gradually increase research investment, enhance independent innovation capabilities, foster independent brands, and form independent R&D and technological innovation capabilities as soon as possible. The adjustment of industrial structure should achieve remarkable results. Energy-saving, environmental protection, safety, and application of recycling technology should approach or reach the international advanced level, and participate in the cooperation and competition of the international automobile industry in a deeper degree, and the world’s major auto parts manufacturing bases should be initially established.

High-tech leads the industry

China’s auto market ranks in the top 4 in the world. Although auto parts and components are in a period of rapid development, due to the long-term lag, auto parts and components industry still has a poor foundation. Among them, 80% of automotive technology is still in the hands of foreign brands, especially in the core technology fields such as high-end engine and electronic technology. It is very nervous to meet the needs of rapid development of automobile production.

Insiders pointed out that China's current high-tech automotive electronics information technology products are still very weak, in addition to audio systems, automotive IC, high-end sensors, microprocessors are basically in blank, have to rely on imports.

Today, as the IT giants march into the auto parts industry, this phenomenon will change during the 11th Five-Year Plan period. In 2005, Lenovo took the lead in the auto parts industry, followed by Microsoft, Motorola and other international IT giants have also expressed their desire to enter the auto parts market. In fact, the future development trend of the auto parts industry has indeed given these IT giants the foundation for a “car dream”. In the current automotive industry, electronic systems can account for 70% of the total cost of a limousine and 30% of the total cost of an ordinary car.

It is predicted that the future development of the world's auto industry will fall into the automotive electronics, intelligence, networking technology and applications. The traditional supplier relationship between existing vehicle companies and parts and components companies may be broken, and IT companies will control the market power of the next generation of automotive electronic accessories market standards.


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