Editorial | Components Industry: From Made in China to Quality Made in China
Publication Date:
2019-08-26
Since the 18th National Congress of the Communist Party of China, driven by the complete vehicle market in our country, the auto parts industry has completed the transformation from "Made in China" to "Quality Made in China." Looking back over the past five years, the auto parts industry has deepened reforms and focused on implementation, striving to establish auto parts enterprise groups with core technology research and development capabilities, and laying a solid foundation for enhancing the global brand influence of independent enterprises...
Since the 18th National Congress of the Communist Party of China, driven by the complete vehicle market in our country, the auto parts industry has completed the transformation from "Made in China" to "Quality Made in China."
Looking back over the past five years, the auto parts industry has deepened reforms and focused on implementation, striving to establish auto parts enterprise groups with core technology R&D capabilities, laying a solid foundation for enhancing the global brand influence of independent enterprises, and diligently "cultivating" a supply chain system capable of integrating global automotive industry resources and sustaining self-driven reform and upgrading.
Over the past five years, auto parts companies have taken improving independent R&D capabilities as the tone for transformation and upgrading, continuously making breakthroughs in core technologies and key auto parts markets. Now, more and more Chinese brand auto parts companies are capable of supplying key components to global automotive brands. In niche markets, several companies with global recognition and influence have emerged, such as Shaanxi Fast, which not only became the global sales champion of commercial vehicle transmissions by leveraging China's huge market but also supplies high-end Volvo heavy trucks in the Southeast Asian market. In the automotive electronics field, Asia-Pacific Co., Ltd.'s ESC has won key projects from multiple vehicle manufacturers, breaking the monopoly of foreign companies in this field.
Over the past five years, policies supporting the development of the auto parts industry have been successively issued to regulate industry development and align with international markets. In these five years, emission standards for heavy-duty diesel vehicles have accelerated upgrades. It took 7 years to fully implement the National III standard promoted in 2008 to the delayed National IV standard, while the transition from National IV to National V emission standards took less than 3 years, promoting accelerated technological upgrades of diesel engines and intake and exhaust system parts, benchmarking international markets, and laying out new product platforms. The release of national standards or implementation measures and detailed rules related to tire pressure monitoring systems, automotive urea solution, mandatory certification for child safety seats, and inclusion of parts manufacturers in the vehicle recall system has raised technical thresholds in niche fields and overall industry technical levels, thereby promoting the healthy development of the auto parts industry.
Over the past five years, independent auto parts companies have accelerated overseas acquisitions, rapidly enhancing brand influence and international status. First, AVIC acquired American Nexteer and Haldex, achieving complementary domestic and international market channels and resource sharing in steering systems and body accessories, with business volume doubling consecutively; then China National Chemical Corporation acquired Italy's Pirelli, comprehensively restructuring commercial and passenger vehicle tire resources in domestic and international markets; furthermore, Joyson Electronics successively acquired Germany's Preh, Germany's TS Dresden, the US's KSS, and Japan's Takata, attempting to build the world's largest supplier in intelligent driving and automotive safety. Behind these acquisitions and integrations is the comprehensive improvement of management systems and integration capabilities of China's auto parts companies, as well as the best example of independent auto parts companies penetrating international markets.
Over the past five years, with the accumulation of advanced technology, innovative R&D, and improvements in product consistency and reliability, Chinese auto parts companies have shifted from "quantity" to "quality," bringing tangible benefits to consumers. Today, Xichai Aowei heavy-duty engine B10 lifespan can reach 1.5 million kilometers, with oil change intervals extended from the previous 20,000-30,000 kilometers to 100,000 kilometers; Kangwei light engine maintenance intervals have increased from 10,000 kilometers to 40,000 kilometers, reducing user costs. Currently, Asia-Pacific Co., Ltd. has achieved a 20% matching ratio for Audi A6L brake discs under the new MLB module, and Beijing Moulding has become the core supplier of front and rear bumpers for Mercedes-Benz domestic models... These all demonstrate that the product quality of Chinese auto parts companies has been recognized by the international market. "Improving quality and efficiency" is the core of accelerating the construction of a manufacturing power, the key to the development of auto parts companies, and a strong support for China's automotive industry to transform from large to strong.
Over the past five years, China has grown into the world's largest new energy vehicle market. Facing a new round of competition, independent auto parts companies are unwilling to fall behind, ushering in opportunities for transformation, upgrading, and scale expansion. They have begun adjusting product structures, optimizing industrial structures, and increasing investment in lightweight parts and the "three-electric" systems of new energy vehicles. In the power battery market, China has formed four major power battery industrial clusters centered in the Pearl River Delta, Yangtze River Delta, central region, and Beijing-Tianjin-Hebei region, developing more than 200 power battery companies including Gotion High-Tech, BAK Power, CATL, Zhuhai Yinlong, and EVE Energy.
Since the 18th National Congress, Chinese auto parts companies have implemented automation and intelligent production line transformations, developing higher-quality and cost-effective products that better meet local needs. In the future, facing accelerated integration and transformation of the global auto parts industry, Chinese auto parts companies competing with world-class players will inevitably face more challenges and difficulties. In the past five years, China's auto parts industry has completed the transformation from "Made in China" to "Quality Made in China"; in the next five years, it must advance toward the goal of "Intelligent Manufacturing in China," laying a solid foundation for building China into a strong automotive power.
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