The Beijing International Automobile Exhibition, known as China's largest auto show, is about to open. According to the organizing committee of the exhibition, the participation of exhibitors of auto parts and auto parts in this auto show was not only exhibited by world-class component companies such as Bosch, Denso, Magna, Siemens, BorgWarner, Dana, Michelin, and Ishibashi. In addition, thousands of large and small domestic and foreign parts and components companies are dispersed in Beijing China International Exhibition Center and Beijing National Agricultural Exhibition Hall. The display scale of parts and components companies and products may exceed the previous scale. So, what kind of power has brought so many parts companies to Beijing? What kind of pattern will China welcome to the auto parts market?
Huge market capacity will usher in the second wave of investment climax
Judging from the production and sales of autos that will reach 7 million vehicles this year, after North America, Europe, Japan and South Korea, China will become the fourth pole of the world auto industry alone. Judging from the other three poles, without the support of its own huge market, it is very difficult to rely on exports to form a world-class automotive industry. The developed countries in the automotive industry like Japan are no exception. Without the support of the 6-7 million domestic market, the pace of Japan becoming an auto superpower will not be so fast.
Through the discussion on issues such as independent innovation and knowledge-building, we have gradually become clear: in any developed country, manufacturing industry has demonstrated the foundation of technological and industrial capabilities. According to the economic forecasting expert of the National Information Center, since 2003, with the arrival of a new round of economic growth in China, the characteristics of domestic industrial heavy chemical industry have become clear, and the rate of industrial technological upgrading and upgrading in China has also been significantly accelerated; The wave of heavy chemical industry shifting from developed countries to developing countries with a focus on China will soon emerge within the next few years.
Parts industry, which is the basis of heavy chemical industry, and automobile equipment manufacturing industry and other automobile related industries closely related to automobiles are undoubtedly the main players in this global industrial shift. For example, more than half of the world’s top 100 parts and components manufacturers have established R&D centers in China. Many Asia Pacific headquarters of component giants have quietly settled in China. Some world-class companies have announced their expansion in China once and for all... These, as mentioned above The industrial transfer coincides.
Fortunately, the Chinese auto market is still growing at a rapid rate. The ultimate production and sales volume is 15 million, or 20 million. I am afraid that no one can accurately calculate. But even if it only doubles on the current basis, the local capacity of about 15 million cars is enough to make the global automotive industry excited. Under the situation that China's rare automotive and parts industries are both growing, it is expected to see the second wave of global investment.
Foreign investment in the aftermarket
In the first half of this year, Delphi, one of the world's parts and components giants, announced its entry into the Chinese auto aftermarket. The situation of parts giants including Bosch, Denso and other world-class companies competing for the Chinese auto aftermarket has begun to take shape.
Recently, the US NAPA company, which has returned to the Chinese market eight years later, has once again propped up the banner of its agency. From 8 years ago, China’s car production was only 500,000 units, and to the current level of 4 million vehicles, the car is no longer a public utility in China. The gradual improvement of China's private car market has made NAPA a car industry. The American chain tycoon of "McDonald's" style had to once again set foot on China's land.
At the twice-yearly National Auto Parts Trade Fair, we have become familiar with foreign companies such as Honeywell, Mahler, Tenneco, Federal-Mogul and others. At the "60th National Auto Parts Trade Fair" which had just concluded recently, ASIMCO Industrial Technology Co., Ltd., a foreign-funded enterprise that used to rely almost entirely on the domestic market, brought with them the first of several companies. At the Auto Parts Conference, the “Dragon Gate Array†was created with the image of the entire group. According to the person in charge of the ASIMCO Group, only by walking on the matching market, it is certain that it will lose a certain market share and status in China; therefore, in addition to the well-established domestic matching and export markets, it will take the initiative to attack the aftermarket. It also became a new idea for ASIMCO's plan to balance the market.
"MadeinChina" is only a matter of time around the world
The increase in China’s foreign exchange reserves has brought unprecedented capital liquidity. The hot money flowing, coupled with the acceleration of the appreciation of the renminbi, the proper investment in foreign countries on the basis of sticking to the local industry has become the best choice for many companies, this is particularly prominent in the automotive equipment manufacturing industry is generally not large. Such as Shenyang Machine Tool's acquisition of Germany's Heath, Dalian Machine Tool's acquisition of Germany's Zimmermann, Shanghai Mingjing Machine Tool's acquisition of stake in Germany's Warrenberg and Japan's Chiba, and Qinchuan Machine Tool's holding of the United Industrial Company, etc. The battle for mergers and acquisitions has started at the front end of the automotive industry. These happen in the capital of the upstream manufacturing industry of parts and components manufacturing, indicating that China has already intervened early in the re-layout and division of labor of the world's manufacturing industry.
At present, the North American market presents a double contraction in the automotive and parts industries. According to the latest information, many famous auto parts companies in Japan have experienced sharp declines in profits this year. From this point of view, if there is no good market environment, Japanese and American companies with even stronger technical capabilities will encounter the same problems.
In 2005, China’s auto parts exports exceeded imports. China’s own-brand vehicles have established a firm foothold abroad, and their entry into the European and American markets is about to be realized. The “Chinese heart†of the automobile fitted with foreign cars has also become a reality. Although our original innovation capability is not strong at present, the wisdom of the Chinese people has been fully utilized in integrated innovation. Together with our national strength and manpower, Chinese-made garments can account for 89% of the US market. "MadeinChina" has only accumulated parts and components throughout the world. It will sooner or later.
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