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Recently, the economic crisis has put China's parts and components companies under heavy pressure. Coupled with the long period of poor spreads and low levels of technology in the parts and components industry, many industry players have called for the integration of domestic parts and components companies to survive. They generally believe that China will follow the rules of the development of foreign companies, and parts manufacturers will become less and less. (Ford Motor Museum is listed in the chart, from 1929 to 1989, the United States from more than 140 auto companies to only 20 ).
"However, this is not the case. The number of spare parts companies is not increasing as the United States is decreasing year by year, but the market development is not only becoming more and more standardized, but more disorderly, and the parts and components industry is becoming more and more complicated." Ni Xie, Vice President of ASIMCO The reporter said.
Statistics show that China's spare parts enterprises have increased from 25,000 in the mid-1990s to the current 30,000, and an average of at least 500 companies have been added each year. Not only that, but the number of vehicle manufacturers also increased from 110 in 1994 when the government announced the optimization and support of other industrial policies, to the current 124.
In fact, no one knows exactly how many parts and components companies in China are in the end. There are no fewer than 20,000 in Zhejiang Province. For example, there are more than 450 motor manufacturers that coexist in China alone; and there are more than 50 piston ring companies in the area around Yizheng Shuanghuan. As a result, many good and bad parts and components suppliers have survived for a long time. Of the 124 vehicle manufacturers, only the top 10 occupy 90% of the market share, and the remaining 100 are still based on the market.
“Unbalanced economic development determines that the Chinese market will not be as “black and white†as the European market, but a multi-tiered, multi-product mixed market. They all require different parts suppliers and constitute an extremely complicated structure.†said Ni Wei. .
It is understood that at the Shanghai International Spare Parts Expo, the domestic diesel engines exhibited will have Euro IV and Euro IV from the international advanced level, and the current Euro III and Euro II will be implemented, and even the Euro I and Euro 0 will be available. That is to say, if the engine manufacturer does not have the technical capability to produce Euro III to Euro IV engines, it can also produce Euro II or less to Euro 0, and can not supply the best products, but can also supply secondary products.
According to statistics, China produces about 40 million engines each year, including nearly 10 million cars and commercial vehicles, and about 30 million motorcycles, agricultural vehicles, construction machinery, and marine engines. If the engine manufacturer does not have the ability to supply cars and commercial vehicles, it can supply other 30 million locomotives.
"With the sustained development of China's national economy and the rapid growth of the automotive industry, the demand for the parts and components market will continue to expand. This also determines that the current number of parts manufacturers will not only reduce but will increase." Ni Wei said.
At the same time, the players in the vehicle industry are constantly emerging. From the fields of electrical appliances, air conditioners, honey, alcohol, etc., to the fields of automobiles and parts, the market capacity will continue to expand, and there will be more and more types and quantities of parts and components.
According to statistics from the China Association of Automobile Manufacturers, by the end of 2006, the total industrial output value of China's auto parts manufacturers reached 539.7 billion yuan; in 2007, the total output value of parts and components industry reached 670 billion yuan; in 2008, the total industrial output value of China's auto parts industry was close to 10,000 yuan. Billion mark reached 948.75 billion yuan. In recent years, the average annual growth rate is 30% to 40%.
In addition, local protectionism, the state-owned enterprise system, and the protection of the huge zero-relationship system to maintain the growth of local fiscal revenues have resulted in insufficient competition, making low-tech and competitively-competitive products persistent for a certain period of time. Enterprises such as inferior products can survive.
"Five decades later, China's spare parts manufacturers may be able to follow the international development law, showing a decreasing trend." Ni Wei said, "but not yet."
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