The competition in the international car industry in the future will inevitably be the competition of core technologies. Whoever has the core technology will be able to take the initiative in the fierce market competition.

The core of the development of the Chinese auto industry is actually the "upgrade" of auto parts and the "upgrade" of the core technology of auto parts. The speed of "upgrading" of auto parts lies in the cooperation model of auto companies and parts and components companies.

In recent years, industry experts have constantly called for: "The current zero-reduction relationship has seriously hampered the progress of the automotive industry."

joint venture

The current automobile industry policy has limited stock ratios for the entire vehicle joint venture, and the foreign shareholding cannot exceed 50%. Compared with the entire vehicle joint venture, China has no excessive restrictions on foreign investment in spare parts production and sales. With the continuous expansion of international cooperation, foreign parts and components companies have set up joint ventures in China and set up factories to separate the cake. At present, most of the world's leading auto parts companies have established joint ventures or wholly-owned enterprises in China. According to incomplete statistics, there were nearly 2,000 foreign-funded auto parts enterprises in 2007. There are 7580 wholly-owned parts and components enterprises above designated size, of which private enterprises account for 49%, foreign-funded enterprises 17%, state-owned collective enterprises 8%, and mixed ownership enterprises 2%. However, in the proportion of auto parts operating revenue, private enterprises accounted for 20%, foreign-funded enterprises accounted for 42%, state-owned collective enterprises accounted for 8%, and mixed ownership enterprises accounted for 23%. On the shares of Sino-foreign joint ventures, foreign investors hold an average of more than 60% of their shares.

It can be said that foreign-invested enterprises have become the "mainstay" of China's auto parts industry, especially the Sino-foreign joint ventures, which include most of the backbone enterprises or leading companies in the auto industry. The intrusion of foreign parts companies is making Chinese parts and components companies marginalized.

Autonomy

In recent years, foreign parts and components companies have continued to expand in China, and they have been favored by Chinese auto companies with advanced core technologies. At present, the status quo of China's parts and components support is that commercial passengers, trucks, minivans, and trucks are mainly based on local parts and components. However, in the area of ​​cars, especially middle and high-end cars, it is basically a Sino-foreign joint venture. And products produced by wholly foreign-owned enterprises. Although the localization rate of some models has reached more than 80%, it is still mainly based on the product mix produced by the joint-venture-owned enterprises in China. The relationship between the procurement direction of China's vehicle manufacturers and the zero-crossing of China's autos is pushing China's parts and components companies to be eliminated. In the future, the competition in the international car industry is mainly the competition of independent core technologies.

At present, China’s auto industry has two representative forms in relation to parts and vehicles: one is that the parts factory is directly affiliated to the auto factory, which is actually the branch of the auto factory, and the other is It is a professional factory where parts and components companies exist in an independent manner. This relationship makes the entire vehicle company and parts and components companies basically one-way in technical communication, that is, flows from the entire vehicle company to the part company. No matter whether it is a parts and components enterprise of an all-round automobile manufacturing enterprise or an independent parts and components company, it is basically the same, that is, the technical exchange with the vehicle manufacturer is passive. After the vehicle manufacturer completes the design of the new model, the parts and components companies only need to manufacture according to the drawings, and they rarely have the opportunity to participate in the research and development of the entire vehicle company. This relationship has also seriously hampered China's "autonomy" path. Because it is difficult for parts and components companies to participate in research and development and lack the technical support to establish a "strategic alliance partnership," it will be difficult to form independent development capabilities in the short term.

On the one hand, mainstream vehicle manufacturers mainly rely on imported technologies, host companies rely on foreign joint venture technologies, and there is no independent market demand for parts and components. Host companies require supporting enterprises to have imitation capabilities, and require companies to have at most tests, self-certification, and improvements. The design capability has caused parts and components companies to become more and more distant from “autonomy”. On the other hand, spare parts do not have the ability to pursue autonomy The disorderly competition and excessive competition cause the parts and components companies to remain in a low-profit, unprofitable operating state for a long period of time. They are unable to invest large sums of money in the R&D of hardware, software, and talents. They can gradually expand their production and protect the market. The production capacity is already a better-run company, and basically there is no excessive capital to pursue autonomy. At the same time, parts and components companies do not want to dare to invest too much money and energy in research and development. As time goes on, the gap between China's parts and components companies and the world's parts and components companies will grow bigger and bigger, and if they lose their core competitiveness, they will lose their markets. It will be inevitable that China's spare parts industry will be eliminated by the international community.

Win-win

In fact, from the perspective of vehicle companies. China's vehicle companies must participate in international competition. Whether they want to compete in developing countries or compete in developed countries, they must ultimately rely on hard-fought strength and rely on their own R&D core technologies to compete. In the future, the competition of entire vehicle companies must rely on the improvement of their own standards on the one hand, and on the other hand, they must rely on the improvement of the overall level of supporting supply chains. At present, the competition between the auto groups in the world is no longer a mere competition between automakers, but is centered on the competition in the industry chain formed by automakers. However, some of China's entire vehicle companies mainly focus on the interests of their own companies and have not really cultivated the entire supply chain, which will affect the future competitiveness. To a certain extent, this not only affects the competitiveness of the automobile industry, but also affects the country's competitiveness, especially the country's military strength. Therefore, industry insiders have appealed: "In the global economic recession, the relationship between Chinese auto parts companies and vehicle companies needs to be adjusted."

Dong Jianping, deputy secretary-general of the China Association of Automobile Manufacturers, pointed out: "Host factories and parts factories must unite and establish a strategic partnership."

Only by focusing on building a harmonious “win-win” relationship with parts and components companies, China’s vehicle companies can make joint development with them, and they will be able to “rise by the tide” and quickly increase their core competitiveness so that they can’t be washed away in the international market.