The state encourages automobile and motorcycle production enterprises to develop international cooperation, exert comparative advantages, and participate in the international industrial division of labor; support large automobile enterprise groups and foreign automobile groups to jointly merge and reorganize domestic and foreign automobile production enterprises, expand the scope of market operations, and adapt to the global trend of automobile production. . Supporting the research and development and production of automotive electronic products, actively developing the automotive electronics industry, accelerating the use of electronic information technology in automotive products, sales logistics and manufacturing enterprises, and promoting the development of the automotive industry.
At present, the national auto parts industry has formed six regional agglomerations, namely, the northeast region with Ha, Chang and Shen as the central axis, the Pan-Yangtze River Delta, and the Pan-Pearl River Delta, with Wuhan as the center and connecting the central and southern regions formed by Zhengzhou and Changsha. The southwestern triangle area formed by Chongqing, Chengdu and Liuzhou and the economic zone around Bohai Bay.
The core technology of auto parts, especially the development of key components, is a fundamental issue that restricts the development of China's auto industry. At present, parts and components companies in the automotive industry in China have already established a certain supporting scale in terms of traditional, low-value-added components, but high-tech and high-value-added components, especially electronic technology components, such as air-conditioning, electric steering, Electronic brakes, suspension systems, and engine controls are still basically controlled by wholly foreign-owned enterprises or joint ventures.
The continuous reduction of suppliers by automakers is also the reason for the merger. Manufacturers are prepared to reduce the number of suppliers for each vehicle to 300-600. But now every car has more than 1,000 suppliers. According to the PRTM report, PPGIndustries Inc. ("PPG"), Eaton and Cummins are active buyers in a new round of global mergers and acquisitions. Auto parts companies such as Triad, Visteon, Delphi and Faurecia may sell their business within the next year or two.
Overseas mergers and acquisitions of domestic parts and components companies continue to emerge. Beijing Jingxi Heavy Industry acquired Delphi's global automotive suspension and brake business, and Wanxiang Group acquired the US DS automobile steering shaft business... Analysts pointed out that, as far as the domestic industry is concerned, the large auto group attaches importance to its component parts business. Increasingly, an important trend in the future integration of parts and components industry will be that parts companies with a background in large vehicle groups will quickly become bigger and bigger through mergers and acquisitions (such as FAW, Dongfeng, etc., and SAIC has already completed this.) process).
With the rapid expansion of the domestic auto consumption market, the expansion of auto vehicles will play a greater role in promoting the production and sales of auto parts companies. It is an important factor in the strong demand for auto parts and components market. However, due to the small size of many auto parts companies, There is no strength to provide corresponding demands for vehicle companies. This may promote the restructuring of the parts and components industry and bring more investment opportunities to the industry.
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