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China Auto Parts Industry Enters Integrated Development Stage in 2013
The development of China's auto parts market has many hinders
"Because China's auto parts market has certain regional barriers, the development of the industry has many hinders, open auto parts market to the foreign will lead to the market re-segmentation, leading the industry into a new stage of integration." Tie Zhihai, researcher in China Commerce Circulation Productivity Promotion Center of the automotive industry said. It is understood that there are a large number of independent brand auto body parts manufacturer, but mostly are smaller, lack of innovation, capacity development means are relatively backward, overall level is poor, and the dependence on transnational enterprises is also very high in high-tech parts and components.
Independent brand auto parts enterprises will find their own development opportunities
It is worth noting that the post-market of auto parts is mainly joint venture (analog automobile companies). And foreign investors setting up factories in China's market occupy the domestic market demand and policy support, and this determines the foreign-funded enterprises need to resolve business risks through cooperation, localization. Independent brand auto parts enterprises are not only able to obtain the joint venture development opportunity and they will also find their own development opportunities in the long-term development.
Suggestions for China's auto parts enterprises
On the one hand, the booming of foreign capital brings greater challenges, but on the other hand, it provides a new development opportunity for the local enterprises. Therefore, Tie Zhihai said local auto car accessories company should draw on the lessons "using market share to exchange technology" learned over the years, to pay more attention for the digestion and absorption of foreign technology, improve their viability, beware of instant success, and blindly copying, survive and gain greater development in the competition. Meanwhile, in order to achieve the development, China's auto parts enterprises must also form Group scale advantages as other industries, cultivate leading enterprises is the only way. At the same time, speed up structural adjustment, realizing resource integration is urgent, or they might lose living space in the competition.
Independent brand auto parts enterprises should actively respond to the two cases
Experts said that the independent brand auto parts enterprises should actively respond to the two cases, on the one hand, enterprises should take mergers and acquisitions as the first measure to defend joint ventures foreign brands impact, in order to guarantee the stability of the enterprise market share; on the other hand, enterprises should actively imitate and thus independently research and develop in order to expand its own production capacity, improve the competitiveness of enterprises, in order to ensure that the enterprises are expanding in long-term development.
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