China's parts enterprises revenue 3.5 trillion core components foreign monopoly

As a major automobile consumer and producer in the world, how many complete vehicle and parts manufacturers are there in China? What is the capacity? How much is the revenue?

At the China Huadu Automobile Forum held on September 24, the relevant research team commissioned by the Ministry of Industry and Information Technology released more detailed data for the first time: China has formed a vehicle production capacity of more than 3100 million vehicles, and the new production capacity under construction exceeds 6 million vehicles. Currently DomesticParts industryGathering about 100000 enterprises (about 13000 enterprises above designated size), the main business income is 3.5 trillion yuan.

Dong Jianping, head of the above-mentioned research group, revealed that among the above-mentioned parts enterprises, small and medium-sized enterprises accounted for as high as 87%, while large parts enterprises were very few, accounting for only 9%. It should be mentioned that although the base of Chinese parts and components companies is relatively large, the key core components with high profits are basically monopolized by foreign-funded enterprises, and some high-precision components still rely on imports.

On the issue of monopoly of foreign-funded enterprises, the originalmechanical industryHe Guangyuan, the 86-year-old minister of the Ministry, has a lot of insights. He believes that my country originally introduced many foreign-funded enterprises into joint ventures with China through the "market for technology" method, and did learn a little management experience and technology from it, but the core technology was obtained. Very little.

According to experts such as Fu Yuwu, chairman of the Chinese Society of Automotive Engineering, and Xu Changming, director of the Information Resources Development Department of the National Information Center, the next step for domestic auto parts companies is not only to improve quality and control costs, but also to do mergers and acquisitions overseas like Geely Automobile and China National Chemical Corporation, and thus take charge of relevant technologies to open up new markets and increase profit margins.

   Parts enterprises long-term "small and scattered"

Few research institutions on China'sParts industryA comprehensive survey has been conducted and the industry has been "pulse".

Entrusted by the Ministry of Industry and Information Technology, the China Automotive Technology Research Center and the China Auto Parts Industry Research Association formed a joint research team to conduct research on China's auto parts industry since last year. It is now close to the conclusion, and the relevant results will be released around mid-October.

The above-mentioned research group collected data from more than 50000 enterprises, and the coverage of the industry reached 98%. According to Dong Jianping, head of the research group, the industrial output value of Chinese parts enterprises is about 3.8 trillion yuan, and the main business income reaches 3.5 trillion yuan. The average profit margin of the industry is 6% to 8%, which is only about 50% of that of foreign-funded enterprises.

The results of the research data show that the current domestic vehicle production scale has reached 25 million vehicles, and the total output value of the industry is 7.5 trillion billion yuan. The peak production scale is expected to be 35 million vehicles, with an annual growth rate of about 4%.

China has formed a vehicle production capacity of more than 3100 million vehicles, and the new production capacity under construction exceeds 6 million vehicles. Among them, the production capacity of passenger vehicles is more than 2500 million, with a utilization rate of 81%; the production capacity of commercial vehicles is more than 500 million, with a utilization rate of 52%, which is insufficient.

It should be mentioned that the average profit margin of the domestic parts industry is 6% to 8%, while the profit margin of foreign capital and joint ventures is more than 15%. This means that in the case of the same cost of investment, the net profit of foreign-funded enterprises is more than double that of domestic enterprises.

This is due to the "small and scattered" characteristics of domestic auto parts enterprises. Data show that at present, there are about 100000 production enterprises in the domestic parts industry, of which about 13000 enterprises have an annual output value of more than 20 million yuan. From the distribution of the nature of enterprises, small enterprises accounted for 62%, medium-sized enterprises 25%, large enterprises 9%, "large parts enterprises are very few".

Dong Jianping believes that domesticAutomotive industryThe chain still has a lot of room for improvement under the goal of being complete, autonomous, complete and controllable. Mainly in the lack of key core technology, the industrial chain has a short board, the lack of comprehensive strength of enterprises, the lack of upstream and downstream support, brand premium capacity is poor.

The core components are monopolized by foreign giants.

Some industry experts said that although the volume and scale of the domestic parts industry continues to expand, domestic independent parts companies are far lower than foreign-funded companies. Most of them are homogenized vicious competition and price competition. The main reason is insufficient investment in corporate innovation and products. The core competitiveness is weak.

Data show that China's parts industry R & D investment accounted for only 2% in 2015. In addition to the factors of less R & D investment, affected by technical barriers, domestic vehicle parts products are difficult to make breakthroughs in high-tech barriers and core components, especially electronic power control, and foreign-funded enterprises are still leading the supply.

It is said that at present, there are about 1500 kinds of supporting parts in China, which are divided into three levels, including six systems and 41 subsystems, with a total of more than 1000 kinds of parts, includingEnginePower composition, electronic and electrical system general products, energy-specific components and other key, high-precision, high-profit products mainly rely on imports.

He Guangyuan said in an interview with reporters that the phenomenon of "scattered and poor" in the domestic auto parts industry has always existed. For example, the key technologies of automatic transmissions and engine series are monopolized by foreign-funded enterprises. "In the past, we called it 'trading the market for technology' and engaging in joint ventures. Almost all the famous automobile enterprises in the world have come to China. We have also learned a little management experience and technical knowledge from it, but what we have got is very little about the core technology."

Affected by this, domestic parts enterprises in the product high precision and product quality consistency, stability and other aspects are still relatively large deficiencies. Take the engine as an example, the traditional finishing casting components can be supplied independently, but we are in the electrical system, fuel supply system,Ignition systemThe field of high value-added parts and components is basically blank and controlled by foreign investment.

Dong Jianping informed that at present, domestic parts and components enterprises are basically at the low end of the "V" industrial chain, and the key core parts with high profits are basically monopolized by foreign-funded enterprises, "becoming a serious short board of our industrial chain". For example, in terms of engine control systems, automatic transmissions, active safety components, and electronic control components, almost all domestic enterprises rely on imports.

Whether overseas M & A is feasible

Some experts told that the real dilemma of relying on imports of core components brings a problem to the domestic whole and parts enterprises is that the profit space is squeezed.

For example, gasoline and diesel engines are monopolized by Japan's Mitsubishi and Isuzu.independent brandMost car companies use the power of these two companies. The heavy-duty diesel engine is provided by Cummins, Yutong, Jinlong, Youth, Zhongtong and other buses and Sany Heavy Industry, Zhonglian Heavy Industry and so on.Construction MachineryMost companies use their products.

In addition, Bosch of Germany, Delphi of the United States (formerly GM parts division), and Denso of Japan (a subsidiary of Toyota Group) have almost monopolized all Chinese EFI market shares, of which Bosch of Germany has a market share of more than 60%. "From independent brands to foreign brands, from cars to trucks, from gasoline cars to diesel cars, Chinese consumers will contribute thousands of yuan of profits to the above three foreign companies for every car they buy."

The multinational parts giants represented by Delphi, Visteon (formerly Ford Auto Parts Division) and Faurecia of France design and manufacture interior and exterior parts for almost most of the domestic passenger car manufacturers.

"China should have its own Bosch and Delphi." Wang Da, chairman of Chunhui Capital, who has worked in General Motors and Delphi in the United States for many years, said that an effective way for domestic parts companies to break technical barriers and seek higher profits is to go overseas to take the initiative to acquire some parts companies.

It is said that after the acquisition of Pirelli for more than 50 billion yuan, ChemChina has become a major shareholder of this high-end tire giant, and related technologies have the opportunity to be introduced into China. Similar cases are gradually increasing. For example, Northeast Industrial Group has accelerated the structural adjustment and upgrading of enterprises by acquiring the world's most advanced vehicle-mounted receiving system and Delphi "Fuba" receiving system.

Regarding the feasibility of domestic companies obtaining technical support through overseas mergers and acquisitions, Yang Xueliang, the public relations director of Geely Holding Group, said that within five years of the acquisition of Volvo, Geely Holding Group's R & D investment in Volvo Cars reached US $11 billion, which directly promoted the design of Volvo Cars. Progress in R & D and marketing.

One of the results is the modular architecture CMA for mid-size and compact models, developed jointly by Volvo Cars and Geely. CMA was developed by Geely's European Research and Development Center (CEVT) in Gothenburg, Sweden. Its scope of work covers all aspects of car research and development, from the overall architecture, powertrain and transmission system to the upper body engineering and model appearance.

Chen Guicai, deputy chief minister of Dongfeng Nissan's manufacturing headquarters, said that Dongfeng Nissan has made efforts in the three directions of "quality synchronization", "cost synchronization" and "time synchronization" to achieve the same quality of suppliers and vehicle factories covering the whole value chain, including parts, sales and after-sales.

Fu Yuwu, chairman of the Chinese Society of Automotive Engineering, believes that China's automobile industry has become an important part of the global automobile industry, with a global share of 27% by 2015, with an average of one out of every four cars produced in China. "What I want to say is that although Chinese auto companies have a strong desire to go global and some favorable factors, the current international development of China's auto industry is just beginning, and there is a huge gap compared with developed countries, and it is extremely different from the status of a major auto country. Proportioned". Fu Yuwu said that with the support of industrial capital and finance, Chinese auto companies must have enough confidence in overseas mergers and acquisitions, be prepared to enter the European and American markets for high-end entry, and make great efforts to carry out targeted product research and development. At the same time, the relevant state departments should also provide corresponding support for auto parts enterprises to "go global". "if China's auto industry wants to achieve international development, we must attach great importance to the development of China's auto parts and the development of automobile vehicles in an equally important position".