The auto parts industry has experienced a decade of growth

In 2003, China’s auto sales exceeded 4 million; in the first 10 months of 2013, China’s auto sales exceeded 17.8 million, and the breakthrough in 20 million vehicles throughout the year was a foregone conclusion.

In ten years, the size of the Chinese auto market has more than quadrupled, and the auto parts industry has experienced an unusual period of growth. According to statistics, from 2003 to 2012, China’s auto parts and accessories sales revenue increased from 300 billion yuan to 22,267.3 billion yuan, a net increase of nearly 2 trillion yuan. As the market scale expands, new product development and technological innovation of parts and components companies continue to bear fruit. Some parts and components companies have begun to go abroad, export products, overseas mergers and acquisitions, invest in factories, and perform well on the international stage. Write a thick chapter.

â–  Market size and strength increase <br> <br> decades, the market size of China's growing auto parts. In 2012, the accumulative export value of auto parts reached 55.322 billion U.S. dollars, of which the export value of auto parts, accessories and auto bodies reached 27.877 billion U.S. dollars, an increase of 2.74% year-on-year.

The market scale of some auto parts and components companies in China is also expanding, and the development prospects are very broad. For example, Fast sales revenue increased from 1.17 billion yuan in 2003 to 8.17 billion yuan in 2012, an increase of 7 times; Hangsheng's annual output value increased from 800 million yuan in 2003 to 3 billion yuan in 2012; Revenue from product sales was only 4.79 billion yuan in 2003, and it exceeded 10 billion yuan in 2010, achieving sales revenue of 13.05 billion yuan. The data of these changes allow us to intuitively see the dramatic changes in the scale of domestic auto parts companies in the past decade.

In addition, with the continuous expansion of business scale and continuous improvement in performance, many auto parts companies have been successfully selected in the “2013 Top 100 Auto Parts Enterprises in China”, such as Weichai Power Co., Ltd. and Shaanxi Fast Automotive Transmission Group. Co., Ltd., Shaanxi Hande Axle Co., Ltd., Nanjing Aotejia Refrigerator Co., Ltd., etc. In addition, Weichai Power, Zhongcesic Rubber, Johnson Electric, Linglong Tire and CITIC Daycare have entered the "2013 Top 100 International Auto Parts Enterprises List" by not losing the strength of the world's largest parts and components group.

â–  new products, new technology R & D investment increased <br> <br> product technology strength is the core element of enterprises to participate in market competition. The strength of foreign parts companies comes from the huge amount of R&D investment and continuous technological innovation. Domestic enterprises have always lacked in this respect. However, as the competition in the auto parts market has intensified, domestic parts and components companies have gradually increased their R&D investment in new products and technologies.

According to the data on R&D investment in the 2012 annual report of the top 30 companies ranked according to the newspaper’s list of operating income of auto parts listed companies, most companies’ R&D input accounted for an average of 2.70% of operating income, and the average amount of investment was 244 million yuan. This is an increase from last year. Among them, Weichai Power's R&D investment accounted for 4.14% of operating revenue, with a total amount of 1.996 billion yuan. Yunnei Power's R&D investment in 2012 increased by 22.15% compared with the same period of last year. It also increased investment in R&D projects such as the “D25TCI Electronic Control Common Rail Project” and “Euro 5 Diesel Engine Development”.

The direct result of the increase in R&D investment is that in recent years, many new technologies and 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, in recent years. Turbocharging technology has also been continuously improved. In terms of new products, Yuchai released last year's National V Natural Gas Engine series products, and Sun Rui independently developed the world's first front-drive 8-speed automatic transmission. In addition, many parts and components companies have established national-level technology centers to strengthen research and development of new products and new technologies, such as Shaanxi Fast Automotive Transmission Group Co., Ltd., Liaoning Shuguang Automotive Group Co., Ltd., Zhejiang Wanan Technology Co., Ltd., and Hunan Province. Tianyan Machinery Co., Ltd. etc.

■ practicing parts enterprises "going out" strategy <br> <br> years, a good momentum of development parts enterprises, but compared with the international level there is a big gap between the components, such as the previously mentioned technical strength is governed by national The bottleneck of the development of parts and components companies. Domestic parts and components companies “going out” to conduct overseas mergers and acquisitions is an effective means to improve their technological capabilities and break the key technology and market situation of foreign capital monopolies. This trend has become more apparent in recent years.

In 2007, Ningbo Huaxiang acquired British Lawrence Interior Decorations Co., Ltd. In 2011, the automotive electronics parts manufacturing company of Ningbo Joyson Investment Group Co., Ltd. acquired Pruen, Germany; Nanyang Friction Shock Absorber Co., Ltd. acquired WayAssauto, the largest car shock absorber company in Europe; in 2012, the China Weapons Group Lingyun Company completed the acquisition of Germany's Kaiyide Company. Although not all of these overseas mergers and acquisitions are successful, at least they illustrate the positive attitude of domestic parts and components companies in "going out" to participate in international competition.

In addition, this year, Shaanxi Fast Automotive Transmission Group established Fast Automotive Transmission (Thailand) Co., Ltd. in Thailand, and Fuyao Glass Industrial Group Co., Ltd. also announced that it will establish "Fuyao Russia Float Glass Co., Ltd." in Russia, and Established "Fuyao Glass USA Co., Ltd." in the United States. This shows that domestic auto parts companies are seeking ways other than overseas mergers and acquisitions to enhance their own strength. Of course, setting up factories overseas requires stronger corporate strength to support it. Not every auto parts company is suitable. However, this new “going out” strategy shows that after 10 years of accumulation, domestic parts and components companies have With a lot of strength.