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Development trend of global auto parts industry

In recent years, the global auto parts industry has shown the following trends:
A. Acceleration of industrial transfer
At present, the automobile consumption market in Europe and the United States is gradually saturated, and the emerging automobile markets such as China and India have become the most growing automobile consumption markets in the world. At the same time, these countries are rich in labor and have price advantages, and the quality of labor is constantly improving. With the increasingly fierce competition in the international automobile and parts industry, in order to explore emerging markets and effectively reduce production costs, automobile and parts enterprises began to accelerate the industrial transfer to China, India, Southeast Asia and other countries and regions.
B. Procurement Globalization
In order to enhance their competitive advantage, multinational companies optimize the allocation of resources worldwide, use global resources to achieve global procurement of parts and components, and reduce costs in development, production, procurement, logistics and other aspects. In order to reduce costs and improve the competitiveness of products in the global market, vehicle enterprises compare the required parts globally according to performance, quality, price and supply conditions, and choose the best to purchase, changing the practice of only purchasing domestic parts and components. And the parts enterprises also sell their products to the world, and are no longer limited to the downstream enterprises in their own countries.
C. Production specialization
With the continuous development of the automotive industry, the trend of independent and professional development of auto parts enterprises is becoming more and more obvious. The supporting supply of automobile parts manufacturing industry to automobile enterprises is also gradually systematized and modularized. Systematic and modular supply refers to that parts enterprises provide products to vehicle manufacturers or superior parts suppliers with systems or modules as units. The systematic and modular supply mode can make full use of the professional production advantages of component enterprises and shorten the development cycle of new products.
D. Strict quality requirements
Auto parts are the basis of automobile manufacturing. The quality of auto parts directly affects the quality and performance of automobiles. Due to the strict requirements on the quality of automotive products, internationally renowned automotive manufacturing enterprises will put forward higher requirements on the technical level and product quality of component suppliers. Some international organizations, national and Regional Automobile Association organizations also put forward standard requirements for the product quality of auto parts and its management system. Auto parts suppliers must pass the review of these organizations (i.e. third-party certification) before they can be selected as candidate suppliers by the vehicle manufacturer, and further reviewed by the vehicle manufacturer (i.e. second-party certification), Only after passing the review can they be approved as members of the global procurement system of vehicle manufacturers. Finally, both parties sign a business contract to become a formal supplier.

Post time: Jul-15-2022