Accelerating mergers and reorganizations of auto parts companies

Will the rapid growth of China's auto market begin to turn this year, and what changes will China's auto parts market embrace? At the “2011 Third Global Auto Parts Industry Summit Forum” held yesterday, industry experts believed that the decline in the growth rate of the auto industry this year is an inevitable trend, but in the long term, the domestic market will continue to develop rapidly in the next decade. In the interval, this brings development opportunities to the auto parts industry, but it also brings challenges. In the next step, the merger and reorganization of Chinese auto parts companies will accelerate.

In the domestic auto market development period, there is a decade of large-scale withdrawal of the government’s auto consumption encouragement policy, rising oil prices, and the superposition of negative factors such as the Japan earthquake, which has increased the downside risk of the entire auto market this year, and temporarily blocked sales. J. D. According to Zeng Zhiling, Power Asia Pacific's market forecasting director, the domestic passenger car market was expected to maintain an 11% growth this year, but it is good to maintain an 8% to 10% growth due to the Japanese earthquake.

Xu Changming, director of the Information Resources Development Department of the National Information Center, also believes that in the short term, the decline in the auto market growth this year is an inevitable trend, because the first two years of high growth is due to stimulus policies and other policies, this year by a variety of negative policies, sales growth Will remain at 10% to 15%, lower than the long-term potential growth rate of the industry.

However, Xu Changming pointed out that the domestic vehicle market still has more than ten years of development space, which will drive the development of parts and components. Xu Changming believes that the rapid growth of the domestic market, the internationalization of the Chinese auto industry and the rapid development of self-owned auto companies will all bring development opportunities to the parts and components industry. In particular, the development of self-owned brand vehicles will have the greatest effect on the auto parts brand. First of all, before 2020, the domestic passenger car market will still be in a rapid development zone, with a growth rate equivalent to about 1.5 times the GDP growth rate, providing sufficient space for independent brands to develop. Second, auto exports will continue to maintain a good long-term development trend, which will bring international market opportunities. Third, in the future, the market will accelerate the transition to second and third-tier cities, especially the third-tier cities will become the main growth point.

Wang Xiaoguang, a researcher in the Department of Policy Consulting at the National School of Administration, optimistically estimated that the automotive industry will maintain a growth rate of 15% to 20% for a decade or more, and eventually the vehicle ownership will reach 600 million units, and the annual output will reach the peak of 60 million vehicles.

While increasing R&D investment and industry integration are welcoming opportunities, the auto parts industry is also facing challenges. Xu Changming believes that, first of all, with the constant rise in factor prices, the cost advantage of independent components and parts is being weakened. Foreign-funded parts and components companies rely on scale advantages and R&D indigenization to form a clear cost advantage. Secondly, standards for energy conservation and environmental protection have been tightened and regulations tightened, bringing double pressure on technology and costs to independent components and parts. Third, the popularity of modular production and simultaneous development has brought higher and higher technical barriers to autonomous parts and components.

In the face of opportunities and challenges, Zheng Xiancong, general manager of GAC Fiat Auto Co., Ltd., believes that while the OEM is expanding, it must pay more attention to R&D and innovation capabilities and improve its core competitiveness.

Xu Changming believes that in the next five years, mergers and acquisitions and reorganizations of Chinese parts and components companies will accelerate. He suggested that support for the listing of manufacturing companies through various channels, because there is no strong auto parts companies will not have a strong vehicle company. At the same time, a number of key components and assemblies have been selected, and domestic companies have been organized to work together and have division of labor. It must be clear that a strong self-contained vehicle must be matched with a strong independent component and must be bigger and stronger. As a major component company of several major group companies, it is imperative that the Group's overall strength be utilized, and a series of measures including increasing R&D investment be adopted to expand the component companies.

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