Only by looking at the reality and calmly analyzing it, can we know that we are known and we are not fighting. In 2010, auto parts companies faced “three major opportunities†and “three major challengesâ€. In 2010, the auto parts industry still needs to work hard. In recent years, with the rapid development of the vehicle industry, China's auto parts industry has grown and achieved remarkable results. In particular, the export volume of China's auto parts increased rapidly from US$3.25 billion in 2002 to US$20.6 billion in 2008. The annual growth rate of exports remained at around 30%, which was higher than the average annual growth rate of China's foreign trade by 8.5 percentage points. At the same time, many people are worried about the prospects of China's auto parts enterprises. They believe that auto parts companies face much more pressure, setbacks, difficulties and challenges, and are worried about the prospects of China's auto parts companies. The author believes that to see everything must be divided into two, both to see the lack, but also to see the results. Only by looking at the reality and calmly analyzing it, can we know that we are known and we are not fighting. In 2010, auto parts companies faced “three major opportunities†and “three major challengesâ€. Three major opportunities The impact of the international financial crisis has led to a contraction in the European, American and Japanese auto markets. The sales of new cars have fallen sharply. Consumers have to extend the time to renew their cars. Therefore, they can only rely on maintenance and replacement parts to maintain. This is the car market in the cold winter. Brought some warmth. Some of these orders are to find suppliers in low-cost production areas. So, China has become a parts procurement center for foreign auto companies, which brings new opportunities to China's parts industry in 2010. The vast domestic market creates opportunities for the development of component companies. In recent years, the development of China's auto market is obvious to all, and the situation is gratifying. In 2009, auto sales have leapt to the top in the world, and strong domestic demand will detonate the 2010 parts and components market. Industrial adjustment will also bring opportunities to parts and components enterprises. Since 2009, due to the policy pull, domestic minibuses and cars under 1.6 liters have grown rapidly. Micro-cars and micro-buses are low-priced vehicles, which are domestic parts for 2010. The package brings new growth opportunities. In particular, in 2010, we will usher in the spring of energy-saving and environmentally-friendly small-displacement cars. Such a broad domestic automotive market creates opportunities for the development of auto parts companies. A good environment and atmosphere create opportunities for independent innovation of auto parts companies in 2010. A series of recent measures by the central government indicate that it is necessary to enhance the level of industrial technology with independent innovation. Developing advanced manufacturing, increasing the proportion of service industries and strengthening the infrastructure construction of basic industries are important tasks for industrial restructuring. In particular, it implements fiscal, taxation, financial and government procurement policies that support independent innovation, develops venture capital investment, strengthens intermediary services such as technical consultation and technology transfer, and improves incentive mechanisms for independent innovation. Strengthen the protection of intellectual property rights, improve the intellectual property protection system, and optimize the innovation environment. These preferential policies and measures, like a strong drink, will greatly promote the pace of independent innovation of China's auto and parts companies. A good environment and atmosphere create opportunities for independent innovation of auto parts companies. Three major challenges In 2009, the three major markets for auto parts exports, the North American market fell by 28.4%, and the European market fell by 37.3%. In particular, the Russian market has fallen by as much as 73.4%, and Japan, South Korea and Canada have fallen by more than 40%. Although the impact of the financial crisis in 2010 will be improved, with the increasing protection of international trade, China's auto parts exports are still very serious. As raw materials rise and the dollar depreciates, the profits of auto parts companies are getting thinner and thinner. The competition in the domestic auto supporting market is also becoming more and more fierce. The gross profit of the enterprises supporting the after-sales market is declining, with an average of about 10%. It is expected that there will be no change in 2010, which is bound to be a challenge to China's auto parts industry. In 2010, new energy and new technologies will become the focus of competition in the global automotive industry. The US, Europe, Japan and South Korea Automobile Group have begun to adjust their strategic plans, increase their comprehensive performance investment in improving safety, environmental protection and energy conservation of automobile products, and develop new models with new energy, new materials and new technologies to occupy the future market. China's auto parts industry is also bound to develop components that are compatible with it. This is also a challenge to the technology and talent of the Chinese auto parts industry. Endangered organic Although the export of China's auto parts was dangerous in 2010, it still needs some pre-conditions: First, the structural complementarity of the Chinese and foreign auto industries has not changed due to the arrival of the crisis. Second, the situation of overcapacity in the auto industry will not change, and it may increase. On the one hand, it is necessary to make adjustments. On the one hand, we can see that the power of export will also expand. Therefore, structural adjustment, we believe that it is a market behavior, is a corporate behavior, the government is to create a level playing field, encourage competition to survive the fittest, a group of enterprises fall, more companies stand up. The third is to undertake the comprehensive advantages of international industrial transfer. China's auto parts have not changed in this crisis. Fourth, the overall trend of the auto industry's rising strength has not changed. Compared with some foreign multinational companies, our cost advantages, labor intensive, competitive intensive, capital intensive, and comprehensive advantages are unmatched by other countries. Fifth, there is still potential in the overseas after-sales market. The car ownership has not dropped significantly. As long as there is a car running, it needs maintenance, and it is possible to provide such a service. However, under the crisis, everyone is more willing to buy products with guaranteed quality and better cost performance. This is a good opportunity for our auto parts to enter the auto market and expand capital. The above-mentioned “five no changes†indicates that the export power and comparative advantage of our auto products still exist, which indicates that our auto parts exports are still eager to continue to rise. The crux of the problem Under the new situation, China's auto parts industry mainly has the following deep-seated problems in its competitive strength, and it is difficult to adapt to the ever-changing market environment. First, the product structure is not adapted China's parts and components industry is developed on the basis of commercial vehicle parts and components, and has a relatively complete commercial vehicle core parts supporting system. Today, with the rapid development of the passenger car market, in addition to the development of individual companies in the process of expanding the passenger car parts market, most of the enterprise parts investment has not fully exerted its effectiveness, and even lost the opportunity of technological upgrading. Therefore, China's parts and components industry should quickly turn to "developing by passenger cars" on the basis of "survival by commercial vehicles". Second, the research and development capabilities are not adapted. R&D capability is one of the most important core competencies of component companies. International component suppliers attach great importance to the construction and investment of R&D capabilities. For example, South Korea’s Wandu and German Bellow’s annual investment in research and development have reached 6% of sales revenue. ～7%, and also has a complete set of scientific and perfect research and development system. In China, although some enterprises have established laboratories with reference to international standards and have relatively complete test equipment, most of the test equipments have not played a good role, and the research and development capabilities have remained at the level of adaptive research and development. Third, marketing ability is not adapted The main performance is: over-reliance on the role of the sales department and sales personnel in the market, while ignoring the effective and quick response and support of the internal departments and mechanisms of the company to the sales department and sales personnel. Fourth, manufacturing capabilities are not adapted Most of the parts and components of China have passed the third-party certification of ISO9000 series quality system standards. Some enterprises have also passed the third-party certification of QS9000 or TS16949 quality system standards, but in general, the lack of manufacturing capability is quality control. The weakest link. International advanced parts and components enterprises, the rate of defective products delivered is below 100 PPM, and there is still a long way for China's parts and components enterprises to reach this level. Fifth, the cost control ability is not adapted With the increasingly fierce competition in the vehicle market, price wars are one of the means that are often used. Vehicle companies must inevitably pass the price reduction to the parts suppliers. At the same time, under the competition principle of QCDS or QCDD, the cost factor is the best quantitative factor and the most sensitive factor in market competition. The cost control ability is not the advantage of China's parts and components enterprises. On the one hand, intangible waste is everywhere, such as idle and ineffective work of assets; on the other hand, how to use the minimum number of personnel and rigid employment mechanism The highest added value of cost is an effective way to reduce costs. BRANDO's Pneumatic Hose Fittings provide easy connection and disconnection tube without causing damage to the tube. 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