China is likely to become the world's spare parts distribution center.
  First, China's automobile production and sales in 2005 Junchao 5.7 million, it is estimated that China's future will be higher than the domestic auto industry the level of GDP growth continued to grow. This makes China become a global automotive components manufacturers snatch the target market.

Second, multinational companies in the parts industry will be labor-intensive products to a large number of low-cost countries and regions transfer. China's low labor costs competitive advantage that foreign components to the transfer of production bases to China as the most viable option.

Third, the vehicle of fierce market competition, forcing vehicle parts manufacturers and enterprise restructuring of the strategic partnership, while lowering the purchase price at the same time, through increased Guochanhualu:, increase domestic procurement volume reduce its cost, which will supporting parts manufacturers bring opportunities for expansion. 2007, the auto industry giants in low-cost countries for the procurement of spare parts will total 50 billion US dollars, 70 percent of which plan aimed at China.

Industry Cluster

To local parts enterprises and transnational rivals would like to change quickly and thoroughly the small size, lack of R & D capabilities, the situation of excessive price competition is not easy to establish spare parts base, formed industrial clusters is a feasible solution. Industry Cluster to the nearest matching, lower costs, and enable enterprises主机厂and parts reached a win-win situation, the advantages of scale industries will do much good.

It is worth mentioning that the formation of industrial clusters, local government departments can get the full support of the development of industrial clusters enjoy preferential policies and comprehensive quality of service, while auto parts enterprises also can be major forces to concentrate their strongest competitive edge or the core business of the highest ＆#118alue-added or core ＆#118alue chain links. In this way, some enterprises with the industry together, the will to do business, in the direction of doing fine, seek survival and development.

Wary "of four low" vicious circle

Currently, China's spare parts business is a "low technology content - low-margin - R & D costs low - low technical content," the vicious circle. How out of the domestic parts enterprises have become the most pressing issue. Technical implementation of the merger, or rely on low-cost advantage to open up overseas markets, it seems that these are domestic auto parts enterprises out of the way. However, the reality of the situation is that these two are not easy shortcuts, spare parts enterprises in order to get through these two methods development, but also spent a lot of time, pay more tuition fees. Parts enterprises can cooperate with the local universities to improve their technical content, is not necessarily non-M & A path to go overseas.

Second, supporting three

In the global supply system, China's largest auto parts business opportunity lies in two, three complementary.

China's auto parts enterprises current level of production, a short period of time may be inaccessible to most enterprises are still the world's most advanced assembly plant procurement system. But a supplier in order to reduce costs, except for a handful of key components and patented technologies, the majority of parts would take outsourcing purchase, the domestic parts enterprises through an online auction or direct participation in the export of two, three supporting competition. At the same time, most of the international automobile companies have established factories in China, if they purchase a large number of spare parts from abroad, is bound to increase inventory, resulting in increased production costs, some of these enterprises will be labor-intensive, materials-intensive and have a certain degree of difficulty or inconvenience processing preferred transport parts procurement, the first choice should be the domestic parts manufacturers. Therefore, in the two, three matching, a strength or improved to meet the requirements of global procurement to Chinese enterprises will have more opportunities to.

Vigilance parts export anti-dumping lawsuit

With the increase of exports, foreign cars on China's exports of cars and parts initiated anti-dumping investigation against the possibility that the security enhanced, on car exports will also be a threat. Parts export enterprises should guard against excessive exports of low-grade products, as well as self friction price war could lead to anti-dumping consequences.

According to statistics, China's exports of foreign auto products anti-dumping cases were initiated eight. Ministry of Commerce in China may Automotive Technology and Research Center building, "auto industry damage early-warning model" to actively develop the competitiveness of industries and evaluation. In addition, enterprises should also enhance countering the anti-dumping investigation into the awareness of such incidents if they should be in the assistance of the relevant state departments actively involved in the case.