The decline in exports is not optimistic in the short term

Data shows that my country's auto parts exports have grown rapidly this year. According to customs statistics, from January to July this year, my country's total exports of automobiles and parts totaled 22.86 billion US dollars, a year-on-year increase of 33.3%. Among them, the cumulative export value of engine parts, transmission system parts, braking system parts, driving system parts and steering system parts was 2.739 billion, 1.382 billion, 2.054 billion, 10.380 billion and 527 million US dollars, respectively, compared with the same period last year. They increased by 36.45%, 25.44%, 25.19%, 37.40% and 39.58% respectively.

However, the auto parts transaction data of the 110th Canton Fair is not optimistic. Auto parts are one of the main transaction products of the electromechanical hall of the first phase of the 110th Canton Fair. In the first three days of the first phase, the total transaction volume of auto parts was 458 million US dollars, a decrease of 4.8% compared with the same period of the previous session.

Judging from the attendance of buyers, there are fewer European and American merchants attending the Canton Fair. Sales staff from many auto parts companies such as Wanxiang Import and Export Co., Ltd. and Chery Automobile Co., Ltd. Engine Sales Company told reporters, This year, the number of European and American businessmen who came to their booth for consultation was significantly reduced. The United States and some European countries are the main export markets for Chinese auto parts. Affected by the economic crisis, the economic downturn in Europe and the United States may be the main reason for the lack of European and American merchants.

In addition, some companies reported that the continuous appreciation of the RMB and the rising cost of raw materials caused the prices of auto parts to rise. Ji Peiwei, the sales manager of Wanxiang Import and Export Co., Ltd., said that the prices of the products exported by the company at the Canton Fair this year have increased by 10%-20%.

Exports face three major problems

The reporter learned from the investigation of the 110th Canton Fair that the impact of the current global economic crisis has not dissipated, the economic situation of major economies is still unclear, and the demand for automobiles and parts is sluggish. At the same time, my country's auto parts export is also facing the following major problems.

First, there is overcapacity in domestic low-end and mid-end products, and the phenomenon of vicious competition at low prices is serious. Wang Baohong, manager of Guangdong Machinery Import and Export Co., Ltd., said that there are too many domestic auto parts companies, showing a "small and scattered" pattern. Local protectionism is prevalent, and each region has its own production line, and repeated construction is serious. The consequence is to drive down prices or cut corners on product quality, resulting in vicious competition at low prices.

Second, there is a lack of core technologies, and the ability to develop key components simultaneously is poor. According to Ji Peiwei, the auto parts industry currently lacks core technologies and is still in the imitation stage and primary stage. If foreign auto companies give samples and parameter requirements, domestic auto parts companies can develop and produce them on schedule; but if they develop simultaneously with the whole vehicle, it is difficult for most companies to keep up. At this point, there is a gap between my country's auto parts companies and large foreign companies in the same industry. Wang Baohong also believes that many companies basically follow the samples, but lack the core parameters. The products can be used, but the quality is difficult to guarantee.

Third, trade protection and laws and regulations of exporting countries restrict exports. For example, Ji Peiwei said that the export of bearings to Russia has encountered great resistance because it has implemented anti-dumping measures against China, with a tax rate of up to 42%. This kind of trade protectionism also exists in countries such as Brazil. In addition, due to political reasons, some countries may experience delays in customs declaration of products exported to them. For example, Iran, where every shipment of products exported there is inspected.

These problems have brought obstacles to the export of my country's auto parts industry, and the industry's own development has also fallen into a bottleneck.

Industry reshuffle is inevitable

According to reports, the United States sold 6.333 million new vehicles in the first half of this year, an increase of 13%. However, due to the high unemployment rate and the European debt crisis in the future, the economic outlook is not clear, and it is expected that the demand will not grow significantly. The sales of cars in the 18 major European countries in the first half of the year were 6.97 million, a decrease of 2%. Faster economic development in Germany increased by 11%, Sweden and the Netherlands increased by 1-20%, Greece decreased by 40%, Portugal decreased by 20%, Spain decreased by nearly 30%, and consumption in southern European countries was sluggish.

In the first half of this year, the growth rate of global automobile demand slowed down, and the current international economic situation is still unclear. Affected by this, it is expected that my country's auto parts export prospects are not good this winter and next spring.

While the external environment is unfavorable, Yao Wenping, vice president of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, also believes that the reshuffle of the domestic auto parts industry is inevitable. She said that it is not enough to upgrade an industry solely by policies such as export tax rebates. Policy support is effective, but it lags behind the development of enterprises. This kind of lag, before the formation of industrial clusters and the formation of a good foundation for industrial development, enterprises must be forward-looking and have a sense of independent innovation.

Moreover, the localization trend of the auto manufacturing industry is becoming more and more obvious, which will further intensify the competition in the domestic auto parts industry. Fu Zhongsen, president of the China-Britain Business Council, said in an interview with reporters at the Canton Fair that more and more British companies are showing interest in developing markets in China, which has become a trend. Now, some British companies have tended to move some high-end manufacturing industries with high technology, such as auto parts manufacturing, to China. Yao Wenping believes that many large auto companies such as BMW have invested and built factories in Shenyang and other places in China, and multinational auto groups have entered the Chinese market, making Chinese auto parts companies more deeply integrated into the global auto industry chain.

Ji Peiwei said that the competition in the auto parts export market is becoming increasingly fierce. In the past, low-end products were profitable, but now low-end products have very low profit margins, and companies are forced to develop high-end products. High-end products are reflected in the possession of more patents for independent research and development. He suggested that small and medium-sized enterprises accumulate funds by expanding the market. On the basis of certain financial strength, on the one hand, it will increase its independent research and development efforts, and on the other hand, it will obtain overseas advanced technology for auto parts production through overseas mergers and acquisitions.

Some domestic auto parts companies have a clear understanding of the situation, and strive to increase investment in research and development. Huang Wentian, director of the marketing department of the engine sales company of Chery Automobile Co., Ltd., said that the company attaches great importance to R&D investment, and some technologies have reached international standards. The company aims to catch up with outstanding foreign companies in the same industry, and slowly integrates with international standards through independent research and development.

As a typical example of successful overseas mergers and acquisitions, the experience of Wanxiang Group, the largest domestic auto parts manufacturer, is also worth learning from domestic auto parts companies. According to Ji Peiwei, Wanxiang started from a blacksmith shop, and after decades of hard work, it has become a leader in the industry. In recent years, Wanxiang has acquired some outstanding auto parts companies in the world, such as the acquisition of part of the shares of AI companies in the United States, and absorbed its advanced technologies through acquisitions. Wanxiang is also a Tier 1 supplier to large and well-known car companies such as Chrysler and General Motors, through which Wanxiang has occupied a large market in the United States.

In addition, Wang Baohong also believes that the role of industry associations in restructuring the auto parts industry should be strengthened. Industry associations can effectively regulate the market order and guide the orderly development of the market by formulating product production standards and other measures.