How will the weak auto parts companies respond?

The "seven-year itch" in the Chinese auto market reached an even greater extent in 2011, and an abrupt brake was placed on the basis of an increase of 46%. Official figures show that the auto market's growth rate was less than 3% in 2011. This huge change made many people unprepared. At the same time, it also brought more uncertainty to the auto market this year. Looking at the automotive market this year, cautious voices are often heard. According to the Gasgoo.com survey of the auto market trend, the trend of the auto market in the first quarter is not optimistic in the industry. Up to 53% of people believe that the overall increase in the domestic auto market in the first quarter is basically In the 0 to 5% range, another 37% even decided that the auto market will experience negative growth in the first quarter. From the point of view of the decline in sales expectations of major truck manufacturers, the industry is generally pessimistic about this year's situation.

The sluggish auto market has severely damaged parts and components industries that have been booming for several years. Coupled with the impact of domestic macroeconomics, the pressure of currency appreciation, and rising labor and raw material costs, the trend of this downward pressure on prices and downstream prices has made the foundation Relatively weak parts and components are more difficult to produce. Under the pressure of this external environment, component companies will expose more and more of their own hardware problems, such as improper management and product quality. The perplexity of parts and components companies lies in the need to invest heavily in scientific and technological innovation, or should they continue to rely on processing to survive? Is it necessary to compete with the upstream automakers on price-profits, or do they have to work together to create innovative cooperation models? The entire industry will also be faced with a series of problems brought by the large number of production companies and the uneven quality, which can be described as affecting the whole body. Therefore, how to seek self-development in the midst of a sluggish upstream auto market and a macroeconomic recession has become a major problem for parts and components companies this year.

National policy also tilts toward parts at this time. The National Development and Reform Commission and the Ministry of Commerce recently announced the "Foreign Investment Industry Guidance Catalogue (Revised in 2011)". The "Catalogue" will be implemented as of January 30, 2012. In the new "Catalogue", the emphasis will be shifted from "car manufacturing" to "manufacturing and development of key components." However, the survey shows that the industry generally believes that the implementation of this policy will likely lead to a new round of reshuffle in the domestic auto parts industry. In the face of such internal and external problems, domestic parts and components companies are constantly seeking new developments. On the one hand, reforms and developments are carried out internally to increase investment in R&D. On the other hand, efforts are being made to ease the impact of the external environment and actively expand sales channels, that is, establish a good relationship of cooperation with vehicle manufacturers. At present, more and more companies are gradually paying attention to dialogues and communication with the OEMs in an attempt to solve the pressure caused by rising costs, but the effect is not optimistic. The reason for this is that more is that we have not found a cooperation model of zero-sum benefit and win-win outcome. It is reported that at the 4th Global Automobile and Components Industry Summit Forum, organizer Gasgoo.com will invite industry authorities and parts and components companies to discuss the relationship between the zero and the full, and will play a guiding role in the parts industry.