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With the release of the auto market in May, although the industry has generally recognized that the auto industry's previous high growth of 10% or even 20% has become a yellow flower. Some people believe that the next five years should be a "difficult" five years for the entire automotive industry. Car companies must not only cope with the contradiction between production and sales brought about by the slowdown of the automobile market and the competitive pressure, but also face the escalation challenges brought by the intelligentization and Internetization of the entire industrial development.
However, compared with the whole vehicle companies, the parts and components companies do not seem to think that the current situation is not optimistic. Dr. Kang Ruifan, President and CEO of Continental China, said: “China’s auto market has only entered a new normal of normalization. However, even in this context, Continental’s future performance in China can still be higher than the market. The pace of average growth is moving forward.†The CEO of Valeo Group, Jacques Ashenbowa, said in an interview with the “First Financial Daily†reporter that “the future performance of Valeo in the Chinese market†It will double every four years."
“The demand for the market is slowing down, but the demand for quality is improving.†Kang Ruifan said the most fundamental truth of the optimism of multinational parts companies. The fierce competition in the industry has made more and more independent auto companies more eager to cooperate with multinational parts companies, and the upgrading of the industry has enabled component companies to obtain more applications for products with higher added value. The two major benefits are superimposed, and the turning point of the overall industry has brought more opportunities for component companies.
High-end parts are sought after
“The most pessimistic forecast is that China’s total vehicle production capacity will reach 40 million in 2015, and the capacity utilization rate will be only 80%. The overall capacity utilization rate of independent brands is particularly pessimistic. According to relevant reports, among the 19 independent brands in the sample survey. There are 15 companies with a capacity utilization rate below 50%." Liu Weidong is now the "alarm clock" for the future development of independent brands in the new normal of the automobile market.
In this forum, Xu Heyi, the chairman of BAIC Group, even boldly estimated: "By 2020, there will be 20% or even more than 30% of auto companies out of the new round of competition, enterprises with slow technological progress and poor innovation ability. Will be eliminated."
From the data of the first five months of this year, although the sales volume and share of the independent brand market are rising year-on-year, the industry has always been that although in this round of competition, independent brands have achieved good results with their deep efforts in the SUV field. However, in the long run, independent brands still have a long way to go, whether in independent research and development or in quality improvement. The sword of Damocles, which is hung on the head of the autonomous vehicle, still exists.
Therefore, in a certain sense, when the auto industry mergers and acquisitions have become inevitable, the pressure of eliminating the acceleration of self-owned brands far exceeds the joint venture brand. In this context, more and more independent brands are beginning to be more inclined to cooperate with multinational parts companies, hoping to further enhance the product quality while further promoting the brand. "We also see that more and more independent brands are using our products as a selling point." Valeo China CEO Beno said in the forum.
“Really, in recent years, more and more independent brands have chosen to cooperate with multinational parts companies. This is mainly because the product quality and performance of multinational parts companies exceed the joint venture brand to a certain extent, on the other hand, In the matching of multinational parts manufacturers, we can also enhance our own brand image. Because many parts and components companies now have a good reputation in the market." An insider of a self-owned brand told reporters.
It can be foreseen that with the acceleration of market competition and the growth of self-improvement of self-owned brands, independent brands will contribute more and more market orders to component companies in the future. "Because from the current point of view, no matter the smart driving concept that is very hot at the moment, or the energy-saving and emission-reduction technology, more core technologies are in the hands of multinational components."
Layout for 5~10 years
“Independent brands must improve quality and maximize cost-effectiveness. Therefore, in terms of cost control, they will face higher requirements than joint venture brands. Therefore, we also hope that parts companies can pass the R&D, production and management of local And platform-based production to continuously reduce costs." Li Xinqiang, Assistant President and Purchasing Director of Changan Automobile, put forward new demands for parts companies at the forum.
More and more component companies are also aware of the importance of localization for their long-term development in the Chinese market. “As a supplier, our investment will follow the needs of our customers,†said Yang Xiaoming, president of Delphi China. Therefore, when car companies set off a new round of investment boom in the Midwest, parts companies followed suit and began a new round of layout.
On June 9, Continental announced that it will jointly invest 600 million yuan with Huayu Automobile to establish Huayu Continental Automotive Brake System (Chongqing) Co., Ltd. in Chongqing. After the new plant is put into production in 2016, it will mainly produce electronic parking system. Dynamic system. Not long ago, Valeo announced the completion of its second phase of Shenzhen in Shenzhen. With the completion of the new plant, Valeo not only further expanded its production capacity in Shenzhen, but also built the "automobile powertrain system electronics". Product Global R&D Center, which will provide Valeo with more localization technology and matching support for China to further introduce the world's leading energy-saving and emission-reduction technology products.
Although China's auto market is entering a period of low growth, for the parts and components companies, the door to opportunity has just opened.
“The Chinese automotive industry is in the best of times.†Wang Xia, president of the China International Trade Promotion Council Automotive Industry Branch, believes. The reason for this is that in his view, China is still the world's largest auto market, and the dual nature of technology and fashion products, the development potential is worth re-evaluation. On the other hand, the rise of new energy and smart connected cars will enable the auto industry to return to the status of the sunrise industry.
Perhaps this is the case, although in the majority of third- and fourth-tier cities, many consumers have not yet been able to own their first car. However, according to the mainland, in a survey they launched on smart driving, 30% of Chinese consumers expressed their recognition and enthusiasm for this new technology.
The rise of young consumers after the 80s and 90s made Chinese consumers more willing to pay for new technology. Therefore, in the Chinese market, multinational parts companies, including the mainland and Valeo, have not only focused on the current market, but also hope to commit to more forward-looking technologies, “to adapt to the next five or even ten years. Market demand."
China's auto industry ushered in a turning point, high-end parts are sought after
Abstract "China's auto industry growth has entered a turning point, the growth rate of the auto industry will continue to be less than 3%, and even zero growth and negative growth may occur, and this state will likely continue for a long period of time." June 9, Dongfeng Motor Corporation vice...
"China's auto industry growth has entered a turning point, the growth rate of the auto industry will continue to be less than 3%, and there may even be zero growth and negative growth, and this state will likely continue for a long period of time." On June 9, Dongfeng Motor Corporation General Manager Liu Weidong made the above judgment at the 6th Global Automobile Forum.