Seeing the Breakthrough of Chinese Auto Parts Enterprises from Beijing Auto Show

The 2012 (Twelfth) Beijing International Automobile Exhibition will be held from April 25th to May 2nd, 2012 in the new hall of China International Exhibition Center in Beijing (Chongqing) and the China International Exhibition Center (Jinganzhuang) in the same period. China has become the world's largest auto market with a prominent status. It is highly sought after by foreign auto giants, and global auto companies gather. It is gratifying that this year's self-owned brands' booth scale and exhibition level are no less than multinational brands. At the same time, independent research and development of new technologies and new brand strategic plans issued by self-owned brand cars have attracted widespread attention and occupied the main stage. Among the 120 world premiere cars, 84 of the own-brand starting vehicles accounted for. Some experts pointed out that independent brands began to usher in their own "spring." In a hustle and bustle, it is convincing that it is not far from the great power that the big auto country is.

However, the reality is extremely cold, and people in the industry know that the auto parts companies behind the dazzling car prices are the foundation of the entire automotive industry. In the entire vehicle hall, Bosch, Denso, Aisin, Borg Warner and other global top auto giants As a result, only a few domestic companies such as Huayang and Hangsheng compete on the same platform. From last year's Shanghai Exhibition to this year's Beijing Auto Show, the protagonist of parts and components companies will always be an international giant, and China is facing a cruel reality of "kept on the road to becoming a powerful automobile country." As the industry with the highest degree of globalization, the automobile industry is highly competitive. While accepting free market competition, industrial powers have spared no effort to support their country’s auto industry with greater competitive advantages, especially as a rising automobile industry powerhouse, expecting other countries’ car companies to help China improve its competitiveness in the automotive industry. Basically, it is wishful thinking. It is based on the use of a joint venture market for technology, or the introduction of a joint venture to become part of an independent brand. It is all self-deceiving. Cultivating China's Bosch, Denso, and Delphi is the key to China’s move toward becoming a powerful automobile country. This has become the consensus of the automotive industry. Then, how should China's parts and components companies stand out and develop rapidly, Huayang Group, which has been adhering to the auto show for many years, gave the best answer.

On April 23, 2012, Huayang Group, a leading automotive electronics equipment company in China, carried in-vehicle information service systems, car navigation, tire monitoring systems TPMS, digital dashboards, air conditioning controllers, safe driving assistance systems, automotive LED lighting, and movements. Precision auto parts and other products appear in a high-profile appearance at the Beijing Auto Show. Huayang started from the movement, and after more than 20 years of development, it became the largest automotive electronics equipment company in China, competing with the world's top auto parts companies on the same stage of the entire industry chain, and guiding China's auto parts companies to break through. road.

China's auto market weakened in 2012 due to the sluggish auto parts market

The "seven-year itch" in the Chinese auto market reached an even greater extent in 2011, and an abrupt brake was placed on the basis of an increase of 46%. Official figures show that the auto market's growth rate was less than 3% in 2011. This huge change made many people unprepared. . Experts expect that from 2011 onwards, the Chinese auto industry will begin to bid farewell to the rapid growth of high-speed hubbusters and enter a steady and rational development stage. As China's auto ownership is still at a relatively low level, the production and sales of automobiles will continue to maintain a certain growth for a long time to come.

The sluggish auto market has severely damaged parts industries that have been booming for several years. Coupled with the impact of domestic macroeconomics, the pressure of currency appreciation, and rising labor and raw material costs, this downward pressure on prices and the trend of downstream price increases make the foundation Relatively weak parts and components are more difficult to produce. Under the pressure of this external environment, component companies will expose more and more problems.

The National Development and Reform Commission and the Ministry of Commerce announced last year the "Foreign Investment Industry Guidance Catalogue (Revised in 2011)". The "Catalogue" will be implemented as of January 30, 2012. In the new "Catalogue", the emphasis will be shifted from "car manufacturing" to "manufacturing and development of key components." This policy is not good news for local auto parts companies. Today, foreign investment in the control of key auto parts is as high as 70% to 80% of the market share. Local auto parts companies are mainly concentrated in non-critical parts and components markets.

With foreign spare parts companies scrambling to set up wholly-owned enterprises in the Chinese market, have domestic auto parts companies lost opportunities to grow together with foreign parts and components? Therefore, the government needs to further guide Chinese companies to establish their own brand core technologies and key components in the automotive industry chain. Huayang, as a leader in the domestic auto parts industry, brought a high-profile appearance of the entire industry chain to the Beijing Auto Show and showcased a series of innovative products with autonomous knowledge products, such as smart navigation supporting voice commands, voice input, Beidou + GPS dual mode navigation, etc. This caused CCTV to come to the scene to interview and deserve our respect and study.

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