Technological improvement is the way out, the key to the breakthrough of the automobile spare parts industry

The slowdown in China's auto production and sales growth is inevitably transmitted to the auto parts industry. In 2012, the growth rate of domestic auto parts companies generally slowed down and their performance declined. To make matters worse, while being dragged down by the domestic vehicle industry, domestic auto parts companies are further threatened by multinational auto parts companies, and many auto parts companies are increasingly struggling to survive. Facing the situation of internal and external troubles, technological upgrading has become the key to the breakthrough of domestic parts and components companies.

　　 Growth slows down and performance declines

　　 Affected by the slowdown in the growth of the vehicle industry, the parts and components industry fell into a dilemma of slowing growth and declining performance in 2012.

　　 In terms of growth rate, take the engine industry as an example. In 2012, my country completed the production and sales of 17.5381 million units and 17.5259 million units, an increase of 4.90% and 3.27% year-on-year, while the coldness of the diesel engine market dragged down the entire industry. Year-on-year increase.

　　In terms of performance, according to Wind data, among the 57 listed companies in the auto parts sector, as many as 37 listed companies had a year-on-year decline in net profit in the first three quarters, and as many as 21 listed companies had total operating income. And net profit both declined. Judging from the 2012 performance forecasts issued by listed auto parts companies, the performance of most listed companies has fallen sharply, and the net profit of many listed companies such as West Pump Co., Ltd. and Yinlun Co., Ltd. has fallen in the range of 40%-80% year-on-year.

　　 Internal worries are still facing external troubles

　　 Zero contradiction has always been an old topic in the auto industry. In 2012, the growth of auto sales slowed down. Incidents of exploitation of auto parts companies by auto companies have occurred more frequently. Some auto companies ignore the interests of auto parts companies and over-reconciles The phenomenon of disorderly claims is increasing, and the survival pressure of parts and components companies has increased sharply.

　　 With the slowdown in the growth of the auto parts industry and the decline in performance, a series of stubborn illnesses that have long existed in China's auto parts industry have once again been exposed. Including: irrational industrial structure, small enterprise scale, poor overall efficiency, and low international competitiveness; irrational product structure, mostly with low value-added products; low Ru0026D investment and low independent research and development capabilities; product standardization, serialization, and generalization. Inferior. Behind this series of problems reflects the low management level of China's auto parts companies.

　　 In addition to internal worries, there are more external worries. In 2012, international auto parts companies further increased their domestic layout and continued to invest in building factories. Although the entry of international auto parts companies can bring capital, technology and other favorable conditions for the development of China's auto parts industry, it has a significant inhibitory effect on domestic independent brand parts companies in terms of technology and market share. . On the other hand, the increase in trade friction has also brought no small challenges to the auto parts industry. On September 17, 2012, the United States filed a complaint with the World Trade Organization, accusing China of providing subsidies for the export of parts and components. This is already the second complaint of the United States against Chinese auto-related issues in 2012.

　　Technology improvement is the way out

　　 GF Securities Research Report believes that the auto industry is still in the midfield of cyclical adjustment. Under the pressure of energy security, it is difficult to expect auto stimulus policies. Low-speed growth and structural adjustment are the main theme of the future of the auto industry. Only companies with core capabilities, good business models, and proactive adjustments in advance will have good performance. The negotiating power of most parts and components companies is similar to that of dealers. In the process of gambling with automakers, they lack bargaining power. The fall in matching prices may have more impact on their profitability than sales.

　　 Facing the unfavorable situation of internal and external troubles, technological upgrading has become the key to many companies seeking to break through.

　　 In 2012, domestic auto parts companies accelerated their overseas mergers and acquisitions, entered the international high-end market, and actively participated in international competition. In the past year, companies such as Ningbo Huaxiang, Sichuan Bohong Group, Weichai Power, China North Industries Group and other companies continued to move, and the purpose of overseas acquisitions was all to identify the advanced technology of the target company.

　　 On the other hand, domestic component companies have stepped up their efforts and investment in technology research and development to cope with future market competition. In 2012, Jiangsu Chaoli successfully developed the BSG light hybrid start-stop device, which has gained a lot in energy-saving and emission-reduction technology. Monopoly in the field.