CHUANGYAO
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25
2022
-
08
Challenges Faced by Auto Parts Industry
Author：
Under the dual pressure of rising prices of raw materials and automobile manufacturers, domestic automobile parts enterprises are in trouble. China's auto parts enterprises are scattered, disorderly and poor. In addition, domestic auto accessory manufacturers seem unable to bear the non-technical barriers they created. One of the magic weapons to reduce the cost of the parts industry is to form a large-scale economy. The separated supporting market hinders the parts enterprises from becoming bigger and stronger. When the automobile market is profitable, it can still cover up the structural defects of the parts industry. When the automobile market is in a period of fierce competition, the pressure of squeezing profits is passed on to the automobile parts enterprises, and the congenital structural problems begin to emerge.
The inherent structural problems of the vast majority of China's spare parts enterprises are the inflexible mechanism and low organizational efficiency, and the production enterprises are basically in a state of disorderly competition. China's auto parts industry is still labor-intensive. China has abundant cheap labor resources, and low management level offsets China's advantage of low labor cost. The labor productivity of Chinese auto parts enterprises is only one eighth of that of Japanese auto parts enterprises.
China's auto parts enterprises have not yet formed large-scale cost advantages in raw material procurement, in-process control, finished product sales, circulation and services; In addition, the product structure is unreasonable, many parts enterprises have serious overcapacity, a large number of assets are idle, and fixed costs have increased. Because the development of new products is limited by capital, technology and other aspects, China's auto parts enterprises are unable to form mass production capacity. Low productivity and high product cost are the fundamental reasons why the price of China's auto parts is difficult to reduce. The future of China's parts industry depends on the efforts of enterprises themselves, and also depends on the effective macro guidance of the government.
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