Hunan auto parts companies want to integrate into the global procurement chain

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Thanks to the vehicle manufacturers such as the Changfeng Group, Hunan's automobile parts manufacturers have entered a period of rapid development.

With the rapid development of the automotive industry, China's auto parts manufacturing is gradually approaching the world level, due to the strong price competitiveness of products, combined with the intensified competition between European and American auto and parts industries, prompting major auto companies and large auto parts in the world. Manufacturers have come to China to seek low-cost procurement.

According to incomplete statistics, the world's auto giants including GM and Ford plan to purchase 50 billion U.S. dollars in low-cost countries by 2007, of which 70% will come from the Chinese market. This will bring good opportunities for the development of auto parts manufacturers in our province.

Enter General

“Our company has passed the ISO/TS16949 technical standard approved by the IATF last year. The most direct impact is the continuous flow of overseas orders. At present, our products are almost all exported to European and American markets except for a small amount of supply to Changfeng Group. Last year, Our company's export value ranks the 12th in Changsha. If we do not pass ISO/TS16949, we can say we can't enter the European and American markets." On Nov. 11, Wang Jianxin of Jiongao (Hunan) Industrial Co., Ltd. said.

Established in 1998, Jigong (Hunan) Industrial Co., Ltd. is currently a global tier one supplier for General Motors and Ford Motor Company of the United States. The scale of the company has also grown from the original few to the current hundreds.

Wang Jianxin said that the IATF, the International Automoile Tedm Force (Global Automotive Action Industry Group), whose members include GM, Ford, DaimlerChrysler, Renault, BMW and other eight major global automotive giants. The ISO/TS16949 technical standard is the basic condition for entering the IATF component procurement system.

On November 11th, Hunan Province, including Changfeng and Hunan Torch, gathered about a total of nearly 100 vehicles and parts manufacturing companies in Changsha to discuss how to use internationally recognized technical standards to enter the global giant's procurement chain.

Development Opportunities

Ma Xiangbin, executive vice president of the Provincial Automotive Industry Association, believes that passing the ISO/TS16949 technical standards will help our manufacturing companies in spare parts to open up overseas markets.

According to Ma Xiangbin, the province’s machinery industry will form three major industrial belts in Changsha, Zhuzhou and Xiangtan in the “11th and 5th” development plan that is being formulated. Among them, the scale of the automobile and parts manufacturing industry may exceed the construction machinery manufacturing represented by Zoomlion and Sany Heavy Industry. This will be an unprecedented development opportunity for the Hunan automobile and parts manufacturing industry. According to the plan of the Ministry of Commerce, China's auto and auto parts exports will exceed 20 billion U.S. dollars in 2005, and will reach 70 billion to 100 billion U.S. dollars in 2010. China will become the global auto parts supply center.

However, judging from the current situation, China’s exports of automobiles and its components account for less than 0.4% of the total world market. The reason for this is that the lack of information exchange platforms and “window” is an important factor. , resulting in some foreign manufacturers can not choose the Chinese manufacturer. Therefore, starting from credit certification, China will fully integrate information from Chinese auto parts companies and build a fair, authoritative, high-level, and powerful international exchange platform to promote China's auto parts companies to enter the international market and integrate into global purchasing as soon as possible. The system has become a general trend.

Face shuffling

According to the relevant person in charge of the Swiss Public Notary (SGS Standards Technical Service Co., Ltd.), in fact, currently domestic large-scale auto enterprise groups such as FAW, China FAW, SAIC and Changan have also adopted or plan to use the same globally before the end of next year. The standard.

At present, China's auto parts industry is entering a structural adjustment stage, and competition pressures may lead to adjustments in the industry structure in three aspects: First, foreign-owned and Sino-foreign joint ventures will occupy a higher market share; second, The traditional model of internal procurement represented by the three major vehicle groups will gradually be broken. Third, it will become the two major development directions for integrators and component specialists who are domestic component suppliers, which will lead to the supply of spare parts in China. The supplier's supply level is gradually clear, and those companies that have neither integrated capability nor professionalism will face difficulties. The result of industrial restructuring will be a complete reshuffle of the auto parts industry.

It is understood that automobile parts manufacturers in Hunan Province have occupied a very important position in the country, among which Changjiang, Hudong, and Zhengyuan have all been leaders in the industry. In previous years, the reason why the production of auto parts in our province slowed down, mainly due to the lack of vehicle companies in the province, and the model of internal procurement represented by the three major auto groups made it difficult to produce products in Hunan. Enter the market outside the province. Structural adjustment will in fact bring very rare development opportunities to Hunan.