Four Major Problems behind China Auto Parts&Components Export Growth
2009-05-20 Source：english.chinabuses.com
Summarize：Latest data from China Association of Automobile Manufacturers shows: Auto CKD enterprises auto export decline more than 50% y/y in the first 4 months in 2009, the situation of auto industry export re ...
Latest data from China Association of Automobile Manufacturers shows: Auto CKD enterprises auto export decline more than 50% y/y in the first 4 months in 2009, the situation of auto industry export remains severe.
According to the data of customs sorted out by China Association of Automobile Manufacturers: engines, parts&components export regain stability instead of dropping, and export rise is higher y/y, of which, engine export 161,200 units, up by 37.55% as against last month, auto parts, accessories and body export reach 1.048 billion U.S. dollars, up by 59.92% as against last month.
Teng Bole, Secretary-General of China National Automotive Industry Advisory Committee said to reporter in an exclusive interview with People's Network: "In recent years, China’s auto parts&components enterprises gain stable, rapid development, have made very good performance, China's auto parts&components annul sales and export grow significantly, have become the world's fourth largest auto parts&components producers and exporters, following United States, Japan, and Germany.”
However, the problems behind data growth are worth of attention:
Firstly, most of auto key parts&components (especially cars) are produced in foreign-owned enterprises in China and Sino-foreign joint venture enterprises. For example, top 6 hydraulic ABS producers are all foreign-owned enterprises, the total annual output account for 83% of total domestic output ;top 4 EMS producers are also foreign-owned enterprises, annual output account for 80% of total domestic output; Including automatic transmission and airbag and so on.
Secondly, China's auto parts&components export enterprises, with foreign background (foreign-owned enterprises and Sino-foreign joint ventures enterprises) account for 60.8% of total export, lots of domestic auto parts&components enter overseas OEM matching, low, middle-end enter the maintenance market.
Thirdly, the percentage of products R & D investment in revenue, domestic auto parts&components industry average is lower12 ~ 16 times than transnational auto parts&components enterprises (in terms of dollar, the gap is greater).
Fourthly, the shortage of high-quality professional and technical personnel, the influence of its own brand is small, R & D and innovation capacity deficient, original innovation is very little.
In general, core strength and international competitiveness of the current China's auto parts&components are not strong enough, auto parts&components enterprises need speeding up enterprise restructuring, scientific development and innovation across than auto CKD enterprises. China's auto parts&components industry goes out into the international division of labor, participates in international competition, this is a development strategy, and it’s also an inevitable trend.
Teng Bole said: " Thinking from the overall situation of China's automobile industry development strategy, China's automobile CKD enterprises (including the Special Purpose auto, bus companies) and auto parts &components enterprises (including auto related products after-market of automotive-related industries, automotive supplies enterprises) should cooperate with each other, it’s the same with the state-owned ,shares and private enterprises, especially the China’s auto parts&components enterprises structural adjustment , in the long run, simply shifting and copying the new production sites of auto parts&components enterprises producing social maintenance accessories are not preferred. "
In particular, he stressed that, according to data from customs, china’s auto CKD export major countries and regions are not the same as parts&components export countries, which is worth of our attention, it worries us a lot. As for CKD enterprises in foreign countries, they usually layout maintenance spots (including maintenance accessories supply) before entering foreign market. Lots of China’s enterprises are weak in this field. The reason why we are concerned about China’s auto parts enterprises issues lies here. We have been talking about "The whole zero-relations” about China's automotive industry for many years, though now improved, this issue still should be given more attention, all enterprises should contribute their ideas and suggestions on these issues.
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