1. Industry Overview
As the upstream industry of the automobile industry, the auto parts industry is the basis for the development of the automobile industry. Its upstream industries are mainly steel, petroleum, non-ferrous metals, natural rubber, fabrics and other materials industries, and its downstream industries are mainly the vehicle assembly industry and Maintenance service industry. The development of the auto parts industry mainly depends on the development of the downstream vehicle market and service and maintenance market. In recent years, with the rapid development of the vehicle consumption market and the service and maintenance market, my country's auto parts industry has developed rapidly Good, continue to transform and upgrade, and change to the direction of specialization.
According to the statistics of the China Association of Automobile Manufacturers, in 2013, the production and sales of automobiles in China both exceeded 21 million, and the cumulative production of automobiles for the year was 22.1168 million, a year-on-year increase of 14.76%; the sales of automobiles were 21.9841 million, a year-on-year increase of 13.87%. In 2013, my country's auto market continued the development trend in 2012 and maintained steady growth. The production and sales of automobiles increased steadily, the scale of production and sales of large enterprise groups increased as a whole, and the structure of the automobile industry was further optimized.
Data from the Traffic Administration of the Ministry of Public Security shows that in 2013, my country's vehicles maintained rapid growth. By the end of 2013, the number of motor vehicles in the country exceeded 250 million, of which 137 million were automobiles. 13.7%, accounting for 54.9% of all motor vehicles. There are 31 cities in the country with more than 1 million vehicles, of which 8 cities including Beijing, Tianjin, Chengdu, Shenzhen, Shanghai, Guangzhou, Suzhou, Hangzhou have more than 2 million vehicles. There are more than 5 million cars in Beijing.
my country's huge vehicle consumption market and the substantial increase in car ownership are attracting more and more international auto parts giants to enter China. At present, my country's auto parts industry has formed five major sectors: the Bohai Rim region, the Yangtze River Delta region, the Pearl River Delta region, the Hubei region, and the central and western regions. The entire industry is showing a rapid growth trend. Some companies are globally competitive in market segments.
At the end of 2013, Roland Berger Management Consulting published the "Global Auto Parts Supplier Research Report 2013". The "Report" shows that the profitability of the global auto parts supply industry is stable at a high level. The data show that the EBIT margin in 2012 and 2013 was 6.5%. The most profitable areas for suppliers are chassis, transmission systems and tires, while the profit of interior parts will further shrink. High technology content and high added value bring high profits, which are prominently displayed in the chassis, transmission system and tire industries. This means that the automotive aftermarket is huge and profits are rising. Many products, such as tires, are far more profitable in the aftermarket than in the vehicle market. Driven by profits, international component companies such as Bosch, Denso, and Continental have also accelerated their steps to enter China's aftermarket.
According to the third quarter reports of 74 auto parts companies listed on the Shanghai and Shenzhen stock markets at the end of 2013, the total operating income of the 74 auto parts companies was about 252.238 billion yuan, and the operating income of over 70% of the companies increased steadily compared with the same period last year. It can be seen that the profits of Chinese suppliers are relatively high at present, but there are also many challenges in the future.
2. Development Trend
1. The strategic relationship between the whole and zero is further optimized
The whole-zero relationship in the global auto industry is divided into three categories. One is the parallel development model represented by Europe and the United States. In addition to the independent vehicle companies of parts companies, parts companies compete freely; the second is the tower model represented by Japan and South Korea, and the whole vehicle and parts companies are a community of interests, and there will be a strong capital partnership; third It is China's earliest model in the planned economy period of FAW and Dongfeng, that is, parts are attached to vehicle companies. At present, there are still some companies in China that use this model. However, the zero-to-zero relationship is not constant. At present, European and American companies are also particularly emphasizing the cooperative relationship between vehicles and parts; among Japanese and Korean vehicle companies, there is also a tendency to purchase parts globally. Now, OEMs have higher and higher requirements for parts and components. In the future, the parts companies required by OEMs will not be pure parts suppliers in the traditional sense, but companies that can provide system solutions to OEMs. Suppliers, in particular, have very high requirements on the integration capabilities and innovation capabilities of the supplier system. This requires component companies to cooperate closely with OEMs in the early stage of advanced technology development, and to cooperate with each other in business development. support. From a long-term strategy, the relationship between them is to create the future together, creating a harmonious development environment and broad space for the whole company.
2. The development of new energy vehicles will promote the transformation and upgrading of the auto parts industry
On February 8, 2014, the Ministry of Finance and other ministries and commissions of China jointly issued a document stating that the current subsidy promotion policy will be implemented until December 31, 2015, and the subsidy standards for 2014 and 2015 will be adjusted. The central government continues to implement subsidy policies to maintain policy continuity and increase support to promote the application of new energy vehicles and promote energy conservation and emission reduction. At the same time, the Ministry of Finance recently announced the list of the second batch of cities for the promotion and application of new energy vehicles, supporting 12 cities or regions such as Shenyang and Changchun to carry out the promotion and application of new energy vehicles. According to the calculation that the cumulative promotion volume in a single city or region is no less than 5,000 vehicles, it is estimated that the new promotion scale will be about 60,000-80,000 vehicles in the next two years. In addition to the cumulative promotion volume of the first batch of demonstration cities of 250,000, the cumulative promotion scale of new energy vehicles will exceed 300,000 in the next two years. Even taking into account factors such as policy implementation, it is expected that the compound growth rate of new energy vehicle sales in the next 2-3 years is still expected to exceed 100%. This policy will actively promote the transformation and upgrading of the auto parts industry, and promote the parts industry to be energy-saving and environmentally friendly. At the same time, actively promote the construction of brand strategy and take the road of international development.
3. Upgrading of high-end manufacturing of parts and components
With the gradual maturity of the domestic auto market, car buyers have higher requirements for product quality, and OEMs have stricter requirements on the technical strength and production management capabilities of parts suppliers. The implementation of policies such as three guarantees for automobiles has made products appear After quality problems, OEMs and parts suppliers take greater risks. Those parts companies with stronger R&D capabilities and higher management level will stand out from the competition. Although the overall competitiveness of the domestic auto parts industry is still far behind that of international giants, in some sub-sectors, domestic parts companies have made breakthroughs, and a broader global parts supply market has been opened.
With the improvement of automobile safety, comfort and environmental protection requirements, automobile intelligence has become a major trend in the development of the automobile industry. How to improve the safety and comfort of automobile use through electronic technology has also become a hot spot in the entire industry. According to the forecast of Topology Industry Research Institute, with the maturity of 4G/LTE and cloud technologies, the global automotive electronics industry will explode this year, with an annual output value of 7% to US$205 billion, and will maintain an average growth rate of 8.5% until 2020. . At present, most of the core technologies of automotive electronics are in the hands of international component giants. Automotive electronics has become the weakest link in China's automotive industry. Due to the difficulty of development and high requirements for product quality and stability, most of the domestic market is occupied by foreign capital. Self-owned brands only occupy a place in the low-end market such as car navigation and audio and video playback.
3. Challenges
1. The quality of Chinese brand auto parts needs to be further improved
After years of development, the quality of Chinese brand parts and components has been greatly improved, but there is still a certain gap between the quality of Chinese brand parts and the products of foreign companies, especially the consistency and reliability of products need to be further improved. Because some Chinese brand parts companies are still in the stage of extensive traditional management and production methods, lack of research and continuous improvement of process systems, insufficient process control capabilities, unstable quality, and poor product consistency, it is difficult to form high-quality products. If auto parts companies want to develop, in addition to product technological innovation, they must work harder on product quality.
Industry development, standards first, auto parts industry standards have been continuously improved in recent years, allowing people to see the hope of healthy and orderly development of the industry. A number of favorable policies introduced in 2013 are also strongly promoting the development of auto parts remanufacturing. On August 26, 2013, the five ministries and commissions issued the "Remanufactured Products Replacing Old with Re-Pilot Implementation Plan" announcing the pilot work of re-manufacturing products, including remanufactured engines, transmissions and other products as key projects. On September 16, the Beijing-Tibet trip of auto parts remanufacturing set off, and passed the actual road test to check the quality of parts remanufactured products. On November 21, the Ministry of Industry and Information Technology issued the "Remanufacturing Promotion Plan for Internal Combustion Engines". At the same time, in 2013, a number of standards in the auto parts industry were released or specified. On March 1, the national standard "Performance Requirements and Test Methods for Passenger Car Tire Pressure Monitoring System (TPMS)" was publicly solicited for comments. In addition, the national standard for airbags has been basically formulated, and the mandatory standard for air quality in vehicles will be implemented in 2015.
2. Domestic auto parts companies need to further improve their core technologies
Product technical strength is the core element for enterprises to participate in market competition. The strength of foreign parts and components companies comes from huge R&D investment and continuous technological innovation. Domestic companies have always been lacking in this regard. At present, domestic auto parts suppliers generally adopt the model of processing with drawings, that is, auto manufacturers provide product data and drawings to suppliers, and the latter manufactures according to the drawings. Most companies do not fully grasp the core technology of their products, and most of the product markets are medium and low-end, with few high-end products. In terms of automotive electronic control technology, especially in terms of power system, fuel consumption, emissions, safety and other electronic control components, the technology is backward, and some Field is blank. Faced with the trend of diversified development of automotive energy in the future, as well as the increasingly strict requirements for energy conservation, environmental protection, and safety, it is required that parts companies not only have basic development capabilities, but also have advanced technology development capabilities. To this end, the technical development capabilities of parts companies will be tested even more.
However, with the intensification of competition in the auto parts market, domestic parts companies have gradually increased their investment in research and development of new products and new technologies. According to the data on R&D investment in the 2012 annual reports of the top 30 listed auto parts companies in terms of operating income compiled by China Automobile News, the average ratio of R&D investment to operating income for most companies is 2.70%, and the average investment amount is 244 million yuan. . Among them, Weichai Power's R&D investment accounted for 4.14% of its operating income, with a total amount of 1.996 billion yuan. Yunnei Power's R&D investment in 2012 increased by 22.15% over the same period last year, and it also increased investment in R&D projects such as the D25TCI electronically controlled common rail project and the development of Euro 5 diesel engines. The direct result of the increase in R&D investment is that in recent years, many new technologies and new products have emerged in the auto parts industry, such as in-cylinder direct injection technology, electronically controlled high-pressure common rail technology, and dual-clutch transmission technology. Turbo technology has also been continuously improved.
China's auto industry is in an important period of development, and building a strong auto country will become a national development strategy. Green, environmental protection, high efficiency and safety are the development trends of the automobile industry. In order to realize the transformation and upgrading of the automobile industry and improve the overall development level of the automobile industry, my country has proposed to vigorously develop the energy-saving and new energy automobile industry. my country's auto parts industry must coordinate the transformation and development of the entire auto industry. In the future, it will closely focus on parts development strategy, transformation and upgrading, policy research, technological innovation, standards and regulations, whole-organization cooperation, common platform construction, industry internationalization, industry Efforts have been made in cluster development and practical services.