Foreign-funded spare parts compete for new energy market and look forward to independent efforts

It is an indisputable fact that the overall auto industry tends to be flat in 2011, and one of the major factors restricting auto consumption is that the price of oil has only risen. As a result, the demand for new energy vehicles in the market is increasing day by day. Each OEM is also developing new energy vehicles to seize market share. In the face of this situation, foreign parts and components companies are also investing in the R&D of new energy components in order to support the entire vehicle. In contrast, domestic self-owned branded parts and components companies have performed unsatisfactorily.

In interviews and investigations on the newly-released companies that entered the 2011 China Auto Industry “Review” campaign, more than 90% of foreign-funded enterprises are increasing their R&D efforts in new energy year by year, and a few non-core parts manufacturers. It is also developing in the direction of low-carbon and environmental protection and gradually transforming into new energy. Although the self-owned branded parts and components companies have also seen the development potential of new energy sources, due to the fact that there are still some gaps in their own technologies, they have encountered various obstacles in their development. On the other hand, in the area of ​​complete vehicle support, the self-owned branded parts and components companies have not really adapted to the changes in the vehicle technology and structure, and they know little about this aspect, thus restricting the development of independent brands.

In order to shorten the gap between domestic and foreign parts companies and further support the development of self-owned brand parts and components, in the first half of 2011, the National Development and Reform Commission issued the “Foreign Investment Industry Guidance Catalogue (Revised Consultation Draft)”, which is a key component for new energy vehicles. The stock ratio has made it clear that foreign-invested stocks ratio should not exceed 50%. The introduction of this policy has had a significant impact on the development of foreign-funded parts and components companies in China. However, this measure will promote the development of new energy sources for local parts and components companies? The reporter did a research on the local parts companies that entered the “review” review. As a result, local companies generally believe that there are policies. It will certainly play a guiding role, and foreign-funded parts and components companies will reduce the inhibitory effect on self-owned brands to a certain degree under the circumstance of rushing to seize the Chinese market. However, on the other hand, some companies have stated that under the premise that China's spare parts and technology shortcomings still exist, this policy will not result in the foreign-funded enterprises' research and development in new energy vehicles being moved to other regions, and this will lead to the lack of technical strength of independent brands. ?

For now, this is a game that requires the market or technology, and the effect will no longer appear in the short term. However, we can see that the state attached importance to the Chinese parts and components market during the “Twelfth Five-Year Plan” period. This is an unprecedented opportunity for self-owned parts and components brands. After the precipitation at the technical level, it will surely bring about a leap in the local parts industry. Therefore, with foreign investment accounting for most of the market, we can still look forward to the development of our own brands in the new energy sector.

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