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1. Corporate restructuring
Major auto companies in the world have reformed their supply systems and implemented global production and global sourcing. They have changed from purchasing from multiple auto parts manufacturers to purchasing from a few system suppliers; from single auto parts procurement to module procurement; and from domestic procurement Turn into global procurement. The reform of the entire vehicle manufacturer's procurement system requires that auto parts manufacturers continue to adapt to it. It not only requires auto parts manufacturers to expand their own strength, improve product development capabilities, and achieve system development and system supply, but also requires them to shorten development. Cycle, provide high quality and cheap products. This change has advanced the process of mergers and acquisitions and restructuring of the auto parts industry worldwide.
2. Higher market concentration, supply chain development
The market concentration is higher. The OEMs are gradually becoming more modularized and systematically purchasing, and the collaboration between suppliers is becoming closer. As a result, the global auto parts supplier system gradually evolves toward the pagoda-type structure, which is achieved by the first-tier manufacturers. The entire supply chain is responsible for management, making the cooperation between supply chains more standardized. Companies that develop in this way are top-notch in their respective markets. They occupy 80% of the market and dominate the high-end market. The CEO of a parts and components company stated: "With the rapid growth in the production and sales of complete vehicles, the parts and components companies have encountered a golden opportunity. If they fail to catch the fast train, they will lag behind and will be eliminated."
3. Technological progress Stronger research and development
Major auto parts manufacturers have applied aerospace, aerospace and electronics technologies to auto parts and assemblies. Safety, electronics, energy-saving technologies and environmental protection technologies have been widely used in automobiles. In particular, new technologies represented by electronic information technologies have not only been widely used in automotive products, but have also been extended to various aspects such as development and design, trial production, production, and management; they have not only been applied to individual automotive parts but have also been applied to them. System assembly.
Joint Automotive Electronics is a joint venture company. They set up three R&D centers in China at one stroke. Through continuous practice, exploration, and improvement, R&D strength has greatly increased, making it possible to develop new projects. In the view of the company: "The market is changing rapidly and customers are demanding more and more time. With R&D strength, it will win close to users."
Component companies set up R&D centers that can “quickly†meet the urgent needs of the market and rapidly develop products; can “quasi†and be close to the market, achieve “localizationâ€; can “new†and apply more new technologies to production Among them, to ensure quality and reduce costs. In fact, some of the new technologies are component companies that are leading auto factories.
4. Business globalization
In order to reduce costs and occupy the market, many auto parts and multinational companies have developed toward internationalization. European auto parts manufacturers have invested overseas to carry out international production; North American auto parts manufacturers have invested in Europe, but also want to expand the Eastern European market; Japanese auto companies also continue to establish their own branch production facilities in the world. The emerging Asian market is the focus of competition among major auto parts and multinational companies, and China is even more of a must-see. Most of the world’s top 20 auto parts companies have set up offices or investment holding companies in Beijing or Shanghai, such as Delphi, TRW, and Bosch. At present, Delphi has established 15 joint ventures in China, manufacturing and manufacturing more than 100 auto parts and systems, becoming the most powerful auto parts group in the Chinese market.
October 18, 2023