China's auto parts industry enters the stage of integration and development

Abstract : Since China's auto parts market has certain regional barriers, the development of the industry is more hindered. Opening the auto parts market to foreign capital will lead to market re-segmentation and guide the industry to enter a new stage of integration. .
"Because China's auto parts market has certain regional barriers, the industry has many obstacles to development. Opening up the auto parts market to foreign capital will lead to market re-segmentation and guide the industry to enter a new stage of integration." China Merchants Productivity Promotion Center Automotive Industry Researcher Tie Zhihai said.

It is understood that there are a large number of self-owned brand auto parts manufacturing enterprises, but most of them are small in scale, lack of innovation ability, relatively backward development methods, and poor overall level. In terms of high-tech parts and components, the dependence on multinational enterprises is still high. .

It is worth noting that the middle and late market of auto parts is mainly joint ventures (analogous vehicle companies). The establishment of foreign factories in China to occupy the domestic market requires market and policy support, which determines that foreign-funded enterprises need to resolve their business risks through cooperation and localization. Self-owned brand auto parts companies can not only obtain the opportunity of joint venture development, but also seek opportunities for independent development in the long-term development.

On the one hand, the vigorous development of foreign capital brings greater challenges, but on the other hand, it also provides new opportunities for local enterprises to develop. Therefore, Tie Zhihai said that local enterprises should learn from the lessons of "market-for-technology" for many years, pay more attention to the digestion and absorption of foreign technology, improve their own viability, beware of quick success and blind copying, and strive for survival in competition. With greater development. At the same time, in order to seek development, China's auto parts enterprises must also form the advantages of grouping scale and cultivate leading enterprises in the same way as other industries. At the same time, it is imperative to speed up structural adjustment and achieve resource integration, otherwise it will be possible to lose the living space in the competition.

Experts said that independent brand auto parts enterprises should actively deal with two situations. On the one hand, enterprises should adopt mergers and acquisitions and joint ventures as the first measures to prevent foreign brands from being shocked to ensure stable market share; on the other hand, enterprises should be active. Imitate and then independently research and develop to expand independent production capacity and improve the competitiveness of enterprises to ensure that the scale of enterprises will continue to expand in the medium and long-term development.

It is reported that the "Guidance Catalogue for Foreign Investment Industries (Revised 2011)" issued by the National Development and Reform Commission and the Ministry of Commerce will encourage the shift from "automobile manufacturing" to "manufacturing and R&D of key components", while canceling foreign investment in some areas. The stock ratio is limited, and there are 11 fewer items than the original one.

Experts said that from the introduction of vehicle manufacturing to the manufacture and research and development of key components, the policy is changing. From an industrial perspective, according to the investment steps of foreign capital, there will be two changes in China's auto parts industry: First, the market structure will appear. Changes, once the investment is liberalized, the foreign product market will continue to expand; second, China's auto parts manufacturing enterprises will face long-term integration, and industrial integration will promote the overall competitiveness of China's auto parts industry.

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