What is the development mileage of auto parts?

Corporate Restructuring

    Major automobile companies in the world have reformed their supply systems and implemented global production and global procurement, that is, from purchasing from multiple auto parts manufacturers to purchasing from a few system suppliers; from purchasing individual auto parts to module purchasing; from implementing domestic procurement. Shift to global sourcing. The reform of the purchasing system of vehicle manufacturers requires auto parts manufacturers to continuously adapt to it. It not only requires auto parts manufacturers to expand their strength, improve product development capabilities, and achieve system development and system supply, but also requires them to shorten development time. cycle, providing high quality and cheap products. This change has promoted the process of mergers, acquisitions and restructuring in the global auto parts industry.

What is the development mileage of auto parts?

chain development

    Market concentration is higher than in previous years. OEMs are increasingly moving toward modular and systematic procurement, and collaboration among suppliers is getting closer. As a result, the global auto parts supplier system has gradually evolved into a pagoda-type structure. First-tier manufacturers are responsible for the management of the entire supply chain, making cooperation between supply chains more standardized. Companies that develop like this are good in their respective markets. They occupy 80% of the market and dominate the market. The CEO of a parts company said: "With the rapid growth of vehicle production and sales, parts companies have encountered a once-in-a-lifetime opportunity. If they don't catch this express train, they will fall behind and be eliminated."

skill improved

    Major auto parts manufacturers have applied aerospace, aviation and electronic technologies to auto parts and assemblies. Safety technology, electronic technology, energy-saving technology and environmental protection technology have been widely used in automobiles. In particular, new technologies represented by electronic information technology are not only widely used in automobile products, but also extend to all aspects such as development, design, trial production, production, and management; they are not only used in individual automobile parts, but also in System assembly.

    By setting up R&D centers, parts companies can "quickly" meet the urgent needs of the market and develop products quickly; they can be "accurate" by being close to the market and achieve "localization"; they can be "new" by applying more new technologies to production. Among them, both ensuring quality and reducing costs. In fact, for some new technologies, parts companies are leading the development of OEMs.

car parts


    In order to reduce costs and occupy the market, many multinational auto parts companies are developing internationally. European auto parts manufacturers are investing overseas and conducting international production; North American auto parts manufacturers are investing in Europe and also want to expand into the Eastern European market; Japanese auto companies are also constantly establishing their own branch production facilities around the world. The emerging Asian market is the focus of competition among major multinational auto parts companies, and China is a battleground.