China's auto parts industry upgrade highlights huge business opportunities

From November 18th to 20th, “2012 China Auto Parts Industry Annual Meeting” was held in Hannan “China Auto Parts Manufacturing Base” in Wuhan, and more than 350 manufacturers from home and abroad were in the “China Auto Parts Industry Development Forum”. "On, consistently optimistic about the development prospects of China's auto parts industry. From "cost competition" to "quality competition", the transformation and upgrading of China's auto parts is ushering in a new era. The Chinese auto market has at least a 10-20 year high growth period, but the auto parts service and after-sales service market will be a long-term, stable and huge market. In an exclusive interview with Xinhua News Agency, Dong Yang, executive vice president and secretary general of China Association of Automobile Manufacturers, said that in 2011, the sales value of auto parts sales in China has exceeded 2 trillion yuan, and will continue to increase by more than 20% in the next few years. . It is estimated that by 2015, the scale of production of China's auto parts industry will reach 2.5 trillion yuan. Since 2002, China's automobile production and sales have maintained rapid growth for nearly 10 years, and the automobile industry has developed into a pillar industry of the Chinese economy. In 2009, China's automobile production and sales exceeded 13 million units, ranking first in the world. By 2011, China's automobile production and sales exceeded 19 million units, ranking first in the world for three consecutive years. According to data released by the China Association of Automobile Manufacturers, in the first 10 months of this year, China’s automobile production and sales exceeded 15 million units respectively. After several years of rapid growth in the Chinese auto market, the growth rate has slowed down markedly, and it seems to have ushered in “micro-growth”. era. However, the auto parts industry, as a major component of the auto industry, is still promising. Dong Jianping, deputy secretary-general of China Association of Automobile Manufacturers, said that from January to August this year, the cumulative industrial output value of China's auto parts manufacturing industry reached 1.44 trillion yuan, an increase of 15.5% over the same period of the previous year, although lower than last year. The growth rate of 23.9% in the same period, but higher than the growth rate of 12.6% in the whole industry. "In addition to the rapid development of auto parts industry driven by the whole vehicle manufacturing industry, the growing number of autos has opened up a huge aftermarket for Chinese auto parts." Dong Jianping said that in the next few years, China's auto parts industry will still Will maintain a rapid development trend. Since 2010, China's service and after-sales market has exceeded 200 billion yuan, reaching 224 billion yuan. By 2014, this figure will increase significantly to 652 billion yuan. Experts generally believe that China's domestic parts market will maintain at least 20% annual growth rate in the next five years. However, the optimism of merchants at home and abroad on the development opportunities of China's auto parts industry is not only in the market itself, but also in the upgrading of parts and products and the transformation of technology. Zhao Guoqing, vice president of Great Wall Motor Co., Ltd. said that after experiencing the cost and price competition, China's auto parts industry will face competition for product quality in the future. The future market structure will be "who has good product quality and who has a large market share." At present, the scale of China's parts industry has been in the forefront of the world, forming the scale of more than 20,000 enterprises. However, due to the lack of self-developed funds, high energy consumption and low added value, its market competitiveness has become increasingly losing with the pursuit of new products quality and quality. This is especially true in the field of core technology components. In China's domestic market, almost all of the major auto parts are monopolized by foreign advanced manufacturers. According to relevant information released by the Ministry of Commerce, the share of foreign-funded enterprises in the production of automotive EFI systems, engine management systems, ABS, micro-motors and airbags reached 100%, 100%, 91%, 97% and 69% respectively. According to rough estimates, the sales revenue of foreign-owned component companies in China last year was about 900 billion yuan, accounting for 54% of the Chinese parts market. After China’s liberalization of the share ratio of component companies, the establishment of wholly-owned enterprises in China by multinational auto parts companies has become a trend. In recent years, multinational giants such as Delphi, Denso, Sumitomo, Dana, France Valeo, and Japan's Fujitsu Electronics have competed to expand their investment in China. At present, 70% of the top 100 auto parts suppliers in the world have come to China to conduct business, and more than 1,200 foreign companies are engaged in auto parts production in mainland China. "As domestic and overseas capital is further optimistic about the development prospects of China's auto parts, China is expected to become the world's auto parts production and manufacturing center for some time to come," Dong Yang said.

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