Current Situations Concerning the Domestic Parts Industry

The development of the vehicle parts marketplace is really important for the grade of vehicles and innovation in China’s own brand. However, the closed development pattern has restricted the development of proper partnership involving the vehicle enterprises as well as the auto parts companies. To keep an eye on the eye rate of automobile industry, the vehicle parts industry needs to be further developed. This is actually the conversation from the reporter as well as the deputy secretary-general of China Association of Automobile Manufacturers (CAAM).

Reporter: Lately, China’s auto parts enterprises make significant progress, nonetheless they still can’t encounter the eye rate of companies which produce vehicles. Which are the reasons?

Dong Jianping: For just about any extended period, products of domestic components industries are low-finish. Generally, individuals joint ventures of vehicle manufacturers avoid using domestic components since they are not tolerant of the grade of these products. While using opening in the automotive market, you’ll find limitations on the quantity of vehicle enterprises. However, there is no restriction round the auto parts companies. Consequently, many foreign enterprises invest making factories in China. Their acquisitions and mergers cash impact on the domestic brands. Thus, the component industry can’t encounter the eye rate of vehicle industry, inducing the restriction of progression of the domestic component industry.

Reporter: The domestic parts companies are actually producing low-finish products. Can it be because of the little acquisition of the technical development and research?

Dong: Really, technical development and scientific studies are an very complex process. In the start from the reform and opening policy, domestic parts and components enterprises cooperated with a lot of foreign companies. They provide technology towards the domestic enterprises. Therefore, the domestic companies need to manufacture in line with the drawing. Though the expanding in the automobile market, many advanced component enterprises don’t provide technology to Chinese companies. They just develop individually. Because many domestic publication rack based on foreign technology, they’re not able to outlive without any core technology.

Reporter: Where’s the big event road for Chinese auto parts industries?

Dong: Although some domestic component enterprises are suffering from perfectly, a lot of their technologies copy from others. They do not grasp products’ core technology basically. Really, auto parts enterprises should cooperate well while using vehicle manufacturers. Meanwhile, the 2nd will need to take responsibilities to create good relationship while using former. Within the finish, the vehicle parts industry can provide service for vehicle companies. For example, they could provide various auto part products on their behalf for instance bearings, gears, brakes and so on.

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