In 2013, Auto parts industry will enter the integrated development stage

The past few years, as we all know, there are a large number of China's domestic auto parts manufacturers, but majority of them are smaller, lack of innovation capability, development means relatively backward, the overall level is poor, in the area of high-tech components, the degree of dependence on multinational companies is still very high." As the parts market in China has a certain regional barriers, there are more factors hinder the development of the industry, open to foreign parts market will lead to re-segmentation of the market share, lead the industry into a new stage of integration.” Commerce Circulation Productivity Promotion Center auto industry researcher TieZhihai said.

However, it is worth noting that the late auto parts market will be mainly through joint ventures (analog automobile companies), the foreign investors set up factories in China to occupy the domestic market needs two supports, market support, determine foreign policy support needs through cooperation, localization to resolve business risks. So, the local auto parts enterprises are not only able to obtain the joint venture development opportunities, but also they will found their own development opportunities in the long-term development. On the one hand, the booming foreign capital brings greater challenges, but on the other hand, it provides a new development opportunity for the local enterprises. Therefore, TieZhihai expressed, China should draw on the years lessons learned "market for technology", pay more attention to the digestion of foreign technology absorption, improve their viability while in dances with wolves, beware of instant success, and blindly copying, survive in the competition and greater development. In addition, in order to develop, Auto parts enterprises must form a group of scale advantages like other industries, cultivate leading enterprises is the road one must follow. Speed up structural adjustment, integration of resources is without delay, otherwise, it will be possible to lose living space in the competition.

The local parts enterprises should actively respond to the two cases, on the one hand, enterprises should be based on mergers and acquisitions, joint ventures as the first measures to defensive foreign industry impact, to ensure stable market share; On the other hand, enterprises should actively imitate, and thus independent research and development in order to expand its own production capacity, improve the competitiveness of enterprises, to ensure that continues to expand enterprise-scale during the long-term development.

Released by the National Development and Reform Commission, Ministry of Commerce, “Foreign Investment Industrial Guidance Catalogue (2011 Revision)” (Hereinafter referred to as the new "directory") are formally introduced recently. Reportedly, a major adjustment of the new "directory" are transfer encourage focus from “Vehicle manufacturing” to "The key component manufacturing and R & D", what’s more, cancelling shares limit to foreign investment in some areas, the shares requested entry has less 11 than the original directory.

From an industry perspective, according to the foreign investment steps, China's auto parts industry will be two changes. First, the market structure will change, once release the investment restrictions, foreign product market will continue to expand; second, parts manufacturers in China will face long-term integration, Industry consolidation will prompt China to improve the overall competitiveness of the parts industry.

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