Chinese parts and components companies: Opportunities at the second and third level


International buyers' preference for Chinese auto parts, the national "Eleventh Five-Year Plan" positioning for comprehensively enhancing the competitiveness of the auto parts industry has brought great opportunities for the development of auto parts in China, and China's auto parts industry is at the forefront. In the new round of development.
However, rising raw material prices have increased cost pressures, and the strong competition of multinational giants has made many domestic parts and components companies difficult to survive. International
The strict quality certification system, strict product support system, and high product technology threshold of automobile manufacturers have brought a severe test to local parts and components companies.

At present, the world’s automotive multinational corporations have established joint venture companies in China, and their supporting parts and components companies have also entered China in succession. Some multinational parts and components companies, such as Delphi, Visteon, Bosch, and Denso, have established nearly 500 parts and components companies in China through joint ventures, holdings, and wholly-owned operations.

It is understood that in the commercial vehicle and passenger vehicle sectors, parts and components for vehicle companies are mainly based on local companies; while in the field of cars, especially in the mid-to-high-class cars, some models have reached 80%, even More than 90%, but mainly based on the product mix of joint ventures and wholly-owned enterprises in China; In the areas of automotive electronics and engine parts and components, foreign-funded enterprises have accounted for more than 95% of components.


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