Why China's Spare Parts Enterprises Fail to Enter the World Top 500 Machinery Enterprises


"World Machinery 500" is based on sales revenue and many other indicators. Among them, many foreign auto parts companies do not have Chinese auto parts companies. China's auto parts industry in 2004 sales of about 300 billion yuan. This is only equivalent to the size of a foreign parts and components company. In contrast, there is a big gap between China's auto parts industry and the global parts industry. Because of such a large gap, Chinese auto parts companies will enter the world's top 500 machinery.

Why does Chinese auto parts companies have such a big gap with foreign auto parts companies?

Misunderstanding in thinking

For a long time, some people in the country have two major misunderstandings in the development of the automobile industry.

For one thing, we restructured the car and ignored the parts. People think that the development level of the entire vehicle represents the development level of the entire automobile industry. Under the influence of this ideology, China vigorously developed the entire vehicle industry and quickly increased its automobile output to fifth place in the world last year. China's auto production is likely to rise to the order of the ball, second only to the United States, Japan and Germany. The automotive industry is a typical "pyramid" industry and must be based on a strong component industry. People did not ideologically cultivate the Chinese auto parts industry, turning the "strong" auto industry into a castle in the air.

Second, the concept of “regionality” hinders the development of parts and components industry. Everyone wants to use the imported-joint-joint-domesticized production model to develop the parts and components industry in a certain area so that the level of the parts industry in the country will not go up.

Engaging in the production of localized parts and components is a kind of protectionism and has no practical significance.

Homogeneity is serious

Most of the existing parts and components companies in China are simply manufacturers, and they have strong subsidiary nature. They basically follow orders from OEMs and their services are simple. The overseas mold 0D companies mostly play the role of suppliers. Companies like Delphi and Lear are independent suppliers and serve many OEMs. Delphi has 35 technical centers around the world and specializes in the production of each component.

China's auto parts companies are far from this, resulting in insufficient innovation. The lack of enterprise innovation has also led to serious homogeneity. Homogeneity is a serious problem and it is the core issue of the scattered, chaotic, and poor Chinese auto parts industry.

At present, China has a number of spare parts companies that have had a good life because of the irreproducible nature of China: huge demand and cheap labor. Therefore, China will be the base of the global auto parts manufacturing industry for a long period of time. The universal application of advanced technology has a process, but this process is not indefinite. If the auto parts industry in China does not vigorously improve the quality and solve the problem of homogeneity, it will face a serious crisis.

Outdated supporting system

The modular supply can reduce the supporting workload, simplify the entire vehicle production process, and effectively control the manufacturing cost and product quality. Therefore, modular supply has become popular in Europe and America, GM, Mercedes-Benz, Volkswagen, Ford have accepted the modular products of Delphi, Bosch and other companies. The relationship between foreign automakers and parts and components companies is entirely based on the laws of market economy. This is because both have the same desire: to maximize the market and profits. Under this premise, as long as the price is reasonable, the technology is high, the quality is reliable, and the service is in place, the cooperation between the two can be successful.

At present, China's auto parts industry is still in the initial stage of modular production, and its modular supply capability is very poor. Most domestic auto parts companies purchase parts and components, and most of them go to the parts factory to purchase individual parts and components. The procurement method is extremely backward, and it is also affected by factors such as affiliation and regional division. As a result, each region and each group has its own auto parts. Supporting enterprise groups. This has greatly constrained the development of China's auto parts industry.

According to relevant experts, the foreign modular knowledge project has entered the experimental stage, and the technology reserves have reached a very high level. Therefore, foreign parts companies and vehicle companies can connect with virtual products and exchange opinions on the products on the network; foreign parts companies can tailor products according to the different needs of vehicle manufacturers. China is still blank in this regard. Can't be equal to not

"Chinese auto parts companies are difficult to enter the world. The top 500 machinery enterprises do not mean that they cannot enter." One industry member said to reporters, "As long as we adopt appropriate strategies, the strength of China's parts industry is still enormous."

Delphi's successful experience tells us that parts and components companies will only move forward in the direction of vertical research and development, and use non-homogeneous to improve their competitiveness, and the development space will be large. China's auto parts enterprises should vigorously improve their own quality, achieve non-homogeneous production, change manufacturers to suppliers, not product-oriented, and customer-oriented, reform the mechanism, adjust the industrial structure. Only in this way can Chinese auto parts companies hope to enter the world's top 500 machinery enterprises.

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