Industry News

The development trend of the world auto parts industry

2021-11-19
(1) It has become a trend for auto parts companies to merge and merge into groups.
In order to integrate related businesses, integrate modules, cultivate and strengthen its core capabilities to adapt to the needs and trends of vehicle modular assembly and global procurement, component manufacturers gradually break away from the vehicle parent body and expand production scale through mergers, reorganizations, and alliances , Form a group to reduce costs and enhance competitiveness. Under the new situation of global procurement of parts and components, automakers have strengthened the selection of parts suppliers. The production of parts is highly concentrated. Production concentration has two meanings. One is that the production of parts and components is mainly concentrated in a few large enterprises. For example, the output value of the 15 largest parts companies in Germany accounts for more than 50% of the output value of auto parts in the country. The second is that the production of the same kind of parts is not scattered in many enterprises, but concentrated in a few enterprises.

(2) Global procurement, systematic design, and modular supply are becoming a trend.
In the face of fierce market competition, in order to reduce costs and improve product competitiveness, automobile manufacturers have reduced the internal production rate and increased the outsourcing rate, facing the world, and purchasing parts based on the performance, quality, price, and supply conditions of the parts and components. .

(3) Development of parts and components products to high value-added and high-tech
The current business development direction of auto parts companies in the world is high value-added and high-tech products. Automotive electronics and automotive plastics are the general trend. With the development of technology for parts and components, first-level parts factories only retain new, advanced, and high-value-added products, and transfer most of their parts to second-level parts and components companies for production.