June 02, 2015

The characteristics of the international auto parts industry

1, The trend of the supporting system and modular supply is in the ascendant

The increasingly fierce market competition forces the change of the whole car system: purchase a single component to purchase the whole one.The system is not only beneficial to oems to make full use ofspare parts enterprisesprofessional advantage, but also can simplify the work and shorten the development cycle of new products. Parts suppliers must have a stronger technology development strength so that it can provide more system products and technology for the vehicle assembly plant. The more and more manufacturers are involved in the development and research of new products, its technical and economic strength is becoming more and more powerful.
On the basis of supporting system, biggerauto parts manufacturingenterprises put forward the concept of modular supply. The so-called module refers to the highly integrated and multi-function large parts which is formed by the arrangement of components and systems. In the modular supply, parts enterprises take up many development work of new products and technology. Not only in the product, but also in technology, Oems more and more depend on parts manufacturers, soauto parts onlinein the automotive industry has played more and more important position.



2,Procurement Globalization

Under the background of global integration, facing the increasingly fierce competition, in order to reduce costs, the world's major car companies expand the production scale while gradually reduce the self-making ratio of auto parts and use parts global sourcing strategy. Meanwhile, in order to obtain greater benefits, the international parts suppliers reduce or even stop the production which is un competitive advantage, lower value-added and technical content, they purchase comparative advantage products in the worldwide.

3, Accelerated the speed ofindustrial transfer

In Japan, Europe and the United States and other developed countries, relatively high labor costs result in lack of cost advantages in the production of auto parts products. In order to cope with the market competition, largeauto parts suppliersin Europe and the United States accelerated the speed of industrial transfer, countries such as China and India have become major destinations attracting the industry transfer of global auto parts.  


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