Competition in the automobile industry

In recent years, in whole industry of competition pattern in the enterprise of scale and type rendering diversified, small of parts production enterprise main for large scale smaller of parts supply enterprise, by part low-end supporting products and for in the large supporting enterprise processing maintained business, and scale smaller, and anti-risk capacity poor, and lack core competitiveness; medium parts enterprise number more, competition more fierce, products technology, and price, and cost is competition strength of key factors, but the class enterprise on market reflect sensitive, business mechanism flexible Each manufacturers to produce products with strong professional, is in a stage of rapid development. Vehicle production in enterprises directly under the professional factory and wholly-owned subsidiaries of their production activities subject to the vehicle as a whole deployment, product variety, large scale, and you can get the vehicle manufacturers with the technical and administrative support. But such parts enterprises dependent on car companies are, therefore, the market and technology development, marketing, and services into small, lack the capacity to face competition in the market. Larger private auto parts enterprises have greater scale and financial strength, technology leading, quality and cost with a global competitive advantage. International Auto parts companies in China's wholly-owned or joint venture companies with foreign capital, technology and management support, with large scale and capital and technological strength, higher levels of management, strong market competition ability.
Anyway, China car parts industry in recent years rendering sales income yearly increased, profit constantly improve, Enterprise constantly transformation upgrade, but China just car parts production of powers also not power, domestic parts main for independent brand car, market share low, Commerce of data displayed, foreign control has car parts of most market share, domestic parts sales income only accounted for full industry of 20%-25%, has foreign background of car parts manufacturers accounted for whole industry of 75% above, In these foreign suppliers, a wholly-owned enterprises accounted for 55%, Sino-foreign joint ventures accounted for 45%, local parts and components mainly for own-brand vehicles, low market share. In high technology areas such as automotive and engine parts, foreign market share is as high as 90%, in which automotive electronic fuel injection systems, engine management systems, ABS and airbag, automatic transmission, the production of core components, the proportion of foreign-funded enterprises, and 100%, 100% and 69%, respectively. Visible, compared with internationally renowned parts manufacturing enterprises, China still needs to further strengthen parts research and development of technology, key technology research and development, enhance the management level to speed up industry consolidation and integration to form specialized components group, and enhance the core competitiveness of Chinese enterprises.