China's auto parts industry is facing four major bottleneck

    In recent years, the multinational auto parts group have entered China, however China's auto parts industry is attached to the whole vehicle enterprise for a long time, the capital, technology, management and development were at a disadvantage, so it is facing an unprecedented challenge. Now Global procurement, synchronized development, modular supply and neutral development has become the four major bottlenecks.
    In the face of global procurement challenges, the expert believes that China's auto parts industry needs to break the old market concept, they should get into the global sourcing platform. In the short term, we can’t achieve a breakthrough in technology research and development of auto parts industry in our country, so except cooperation with the multinational auto parts group, there is no good way.
    The main bottleneck that the parts industry of our country is facing is the research and development ability. Due to the low level of R & D and no independent brand, products can only imitate others. The majority of parts enterprises in China can not meet the requirements of synchronization, not only difficult to support the new models, but also inevitably faced with the danger of losing the traditional market.

    Second is global procurement. At present, China's auto parts industry is low manufacturing level, management extensive and cost control is weak, which can not meet the user's requirements for product quality, cost, delivery and other global procurement. Especially in the cost control, with the frequent performance of the car price war, the cost pressures continue to shift to the parts, so the ability of cost control is facing enormous challenges. According to estimates, every 10% reduction in vehicle prices, at least 5 percent is passed on to the parts enterprises.
    Three is the modular supply. The modular supply is a new management idea and mode, and it puts forward strict requirements on the production management level, the assembly labor productivity, the cost control ability and the electronic level. At present, the gap between parts enterprises and the foreign company in this area is also very big, especially in the integration, electronic. Due to technological backwardness, the majority of parts and components enterprises in China can only produce labor-intensive products, so the added value of products is low, so it is difficult to enter the ranks of first-tier suppliers.
    In addition, insufficient capital investment, small scale production, small batch, weak in strength, so that China's auto parts enterprises are unable to compete with multinational auto parts enterprises.
    Increase market openness in parts enterprises brings opportunities as well as risks,, so how to prevent foreign investors from controlling the Chinese market? In fact, from the current market situation, China's parts have been controlled already. Therefore, we should keep learning foreign technology to shorten the gap with the international parts enterprises. In addition, we still have to work hard to create conditions, actively create a breakthrough and development opportunities for ourselves. 

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