In recent discussions at the "2007 China Automotive Auto Brands Industry Chain Summit Forum" hosted by *Car Watch* Magazine and the China Association of Automobile Manufacturers, Dong Yang, Executive Vice President and Secretary General of the association, highlighted the current state of China's local automotive parts industry. While the Chinese auto sector has made significant progress in independent innovation and international expansion, there are still substantial gaps compared to global leaders, particularly in mastering core technologies and fostering original innovation. The challenge lies in achieving balanced development between complete vehicle manufacturers and their component suppliers, a critical issue that all domestic brands must address seriously.
Yan Fuwu, Vice President of the Automotive Engineering Institute at Wuhan University of Technology, emphasized that integrated innovation in the automotive sector must be supported by a strong industrial chain. He pointed out that Chinese auto companies need to focus more on original innovation rather than merely replicating existing designs. Additionally, he noted that many Chinese firms prioritize sales over supply chain management, which can compromise product quality. To ensure reliability, companies should invest more in the supply chain and implement strict quality control measures.
Yuan Wen, Deputy General Manager of Beijing Hyundai Motor Co., identified a major challenge for Chinese auto parts companies: the repeated development process required by international automakers. He explained that global OEMs often ask suppliers to redevelop components, which puts high demands on Chinese manufacturers. To succeed in the global market, companies must not only have good quality and production capacity but also possess strong R&D capabilities. Understanding the technical requirements and development processes of vehicle manufacturers is crucial for staying competitive.
Han Zhiyu, Deputy General Manager of Changfeng Group, outlined four key requirements that vehicle companies expect from their supply chain partners. First, quality remains the top priority, as it builds consumer trust. Second, credibility is essential—both the vehicle manufacturer and its suppliers must fulfill their commitments and be accountable for the time and promises they make. Third, controlling core component technology is vital, as these parts carry high value and are often protected by competitors. Finally, improving service orientation and ensuring information transparency across the supply chain are necessary for long-term success.
Wang Jingli, President of Zhongtai Holding Group, suggested that the government should provide stronger support and incentives for the production of key core components to help OEMs and suppliers build joint core competitiveness. As the Chinese automotive industry continues to grow, collaboration, innovation, and strategic investment will play a crucial role in shaping its future on the global stage.
Keywords: Independent brands, future direction, automotive industry, supply chain, innovation, internationalization.
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