The development dilemma of auto parts

Commercial vehicle parts companies are a highly segmented industry, mostly emerging individual companies. For these small and medium-sized enterprises, the capital pressure of the initial investment is already very large, and the profit after the production is not high, so it is relatively difficult for them to increase the investment in research and development. Moreover, in a certain period of time, the prices of raw materials for auto parts have continued to rise, and companies need to pay a large part of the funds in terms of raw materials.

The single marketing is because commercial vehicle parts companies are limited by regional segmentation, which determines that they can only maintain customer relationships through a point-to-point model. The financial problem also determines that it is difficult for parts and accessories companies to spend a lot of investment in technological research and development. The repeated construction nationwide has caused parts and accessories companies to fall into the quagmire of price competition, which has caused a serious waste of capital. A complete cake is divided into pieces, which makes it difficult to form a large-scale production, which makes them difficult to achieve profitability, and it is difficult to make a large investment in subsequent research and development.

However, despite the many problems faced by commercial vehicle parts companies, most companies still survive, and the key lies in the demand for OEMs. After all, companies produce spare parts with less technical content. In terms of labor costs and manufacturing costs, there are still fewer requirements for liquid assets.

The problem of the route selection of the OEM is also an important reason for the difficulties faced by the current spare parts enterprises. Most domestic commercial vehicle companies make products regardless of model or type. This is not conducive to product segmentation, which is not conducive to the subdivision of auto parts companies, and it is also not conducive to parts companies concentrating on certain subdivided products. . Most companies only value the current production, not the protection of intellectual property rights. Even if some commercial vehicle parts and accessories have technology and products, they do not have patents, and they don't even understand what patent protection is.

Of course, the low-end technology and meager profits of commercial vehicle parts companies are also related to the characteristics of commercial vehicles. Commercial vehicles are different from passenger vehicles. Commercial vehicles are an investment tool, and customers focus on its price/performance ratio when purchasing. As long as it is sturdy and durable, it is enough that the cost of purchase can be effectively offset by the value created in use. Therefore, commercial vehicles have fewer requirements for the refinement of spare parts configuration and fewer technical requirements. But another reality is that the refined requirements of commercial vehicles have begun to gradually appear. Some foreign commercial vehicle giants have already begun to refine requirements in terms of configuration. In a certain period of time, many large foreign commercial vehicle companies have entered the domestic market in large numbers, which has brought major challenges to domestic commercial vehicle companies. In a certain period of time, the parts companies should do is to optimize the structure, enhance the technological competitiveness, and strengthen the ability to develop market channels.

Due to the lack of necessary follow-up funds to expand production capacity, and insufficient funds to support R&D, most parts companies are still limited to a point-to-point marketing model, it is difficult to get out of the regional market, and it is even more difficult to become a well-known parts company. Commercial vehicle spare parts companies that are difficult to achieve are still struggling in the era of meager profit. In a certain period of time, auto parts companies have fallen into two vicious circles that are difficult to get rid of: one is that serious local protectionism has caused one-to-one marketing of parts and components companies, and their market development capabilities are insufficient and it is difficult to form scale effects. Therefore, in the entire commercial vehicle There is no decision-making power in the industry chain, and it is completely reduced to a foundry; enterprises are indulging in low-price competition and do not pay attention to the protection of intellectual property rights, which in turn increases local protectionism. The second vicious circle is that low technology content leads to low profits, which in turn makes R&D funds unsustainable, which in turn leads to low technology content.

As the foundation of the auto industry, auto parts are necessary factors to support the sustainable and healthy development of the auto industry. In particular, the current independent development and innovation in the auto industry that is being carried out vigorously and in full swing requires a strong parts system to support it. Vehicle independent brands and technological innovations require parts and components as the foundation. Independent innovation of parts and components has a strong driving force for the development of the vehicle industry. They influence and interact with each other. There is no independent brand of complete vehicles and a strong parts system. The R&D and innovation capabilities of the company are difficult to burst, and without the support of a strong component system, it will be difficult for independent brands to become bigger and stronger.

From January to December 2005, all China's auto parts and accessories manufacturing enterprises achieved a cumulative total industrial output value of 383,800,952,000 yuan, an increase of 18.67% over the same period of the previous year; realized a cumulative product sales income of 375,265,815 thousand yuan, an increase of 20.21% over the same period of the previous year; The total realized profit was 21,462,002 thousand yuan, which was 9.09% lower than the same period of the previous year

This is the circular dilemma faced by Chinese commercial vehicle auto parts companies.