China's auto parts companies can't develop without independent innovation

[Abstract] In the context of economic globalization, China's auto parts companies go abroad to join the global procurement system, which is the only way for development. How can China's auto parts companies get in line with the international market? In the “Second Annual Meeting of Chinese Auto Parts Entrepreneurs” held in December 2005, auto parts companies’ independent innovation became the focus of discussion. According to the conference, China National Machinery Industry Enterprise Management Association cooperated with the Patent Search Center of the State Intellectual Property Office and conducted the first patent investigation of the Chinese auto parts industry from June to October 2005.

The survey results showed that the total number of Chinese and foreign patents for parts and components registered in China accounted for only about 2% of the world's total. Only 22% of the domestic parts and components companies own patents in China. The remaining 78% are owned by multinational parts companies, and the growth rate is quickly. It can be seen from this that overseas investment companies have already established patent advantages in China, and China’s auto industry has been surrounded by multinational companies’ intellectual property competition strategies.

Looking at the development trend of China's auto parts industry, according to the statistics of China Market Yearbook 2003 and China Information Bank, in 2001 China's auto parts sales reached a total of 17.8 billion US dollars, of which about 4.2 billion US dollars came from the vehicle manufacturer's outsourcing business. According to the research and analysis, due to the relatively weak support of the domestic parts and components industry, in the past few years, most of the vehicle output was assembled from imported parts, bulk parts, and products purchased from domestic and foreign investment companies. In 2003, China imported key components worth US$3 billion and other components and accessories worth US$6.2 billion.

According to recent market research and analysis, the relationship between parts suppliers, quality control of enterprise structure and resource allocation, and intellectual property protection have become challenges faced by China's auto vehicle and parts industries.

In the context of economic globalization, China’s auto parts companies have gone abroad to join the global procurement system, which is the only way for development. So how can Chinese auto parts companies meet the international market?

From the difference between foreign auto parts production companies and domestic companies, we can see that: First, foreign auto parts production companies attach great importance to brand management; Second, there is a mature global marketing network and sales channels; In addition, foreign auto parts companies mostly synchronize with the host plant research and development, There is a matching relationship. The most important feature in recent years is that the auto parts production companies in developed countries only produce about one-third of the channel sales, and the rest are OEMs. It is the above characteristics that provide Chinese auto parts companies with opportunities for cooperation.

The cooperation between foreign auto parts companies and Chinese auto parts companies should be said to be all they need. The development stage of foreign production companies is different from that of Chinese production companies. Domestic enterprises only pay attention to the control of output and low cost. In addition to foreign companies, they also pay more attention to brands, channels, and technological R&D and services. In recent years, with the shortage of labor resources in foreign countries, rising labor costs and raw material costs have forced foreign auto parts manufacturers to shift to low-cost countries—the low-cost advantages of Chinese auto parts companies are not in developed countries; foreign companies The advantages of technology and capital are also not available to domestic companies.

At present, there are as many as 8,000 auto parts manufacturers in China. It is necessary to break through patent barriers in key technologies and shorten the gap with the international advanced automobile manufacturing industry. Domestic companies must first improve patented technologies and fully understand and value patented technologies for independent innovation. Promote the role of rapid integration with the international market, the first to recognize the current economic globalization, to take advantage of their advantages, go abroad to take the initiative to go to foreign auto parts market; in addition to the development of practical measures and steps to enrich The traditional products produced by China's spare parts enterprises will expand into international markets and meet international standards. The ultimate goal of China's auto parts enterprises and international cooperation is to integrate international standards, accumulate abundant funds, learn advanced technologies, and master scientific management methods. Continuously improve the overall competitiveness of enterprises, and realize the transition from labor-intensive products to high-tech content products, and strive for China to become an international high-quality auto parts production and supply center.

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