Under the current situation, China's self-owned brand parts and components are facing three major opportunities, namely, the rapid development of the automotive market, the rapid development of self-owned brand vehicle companies and the global financial crisis. First, the rapid development of the domestic automobile market is the biggest opportunity. The acceleration of industrialization and urbanization will become an important driving force for the growth of the automotive industry. It is estimated that by 2020, commercial vehicles can maintain an average annual growth rate of 9% to 10%, roughly equal to the growth rate of GDP. Passenger cars are more optimistic. The average annual growth rate is about 1.5 times GDP growth rate, which can reach 15%. In 2012, China's auto production and sales volume is expected to reach 13 million vehicles, and it is estimated that the national automobile market capacity will reach 30 million in the future, with huge growth potential. Second, the opportunity brought by the development of self-owned brand vehicle companies. From January to September 2012, the sales volume of self-owned brand vehicles reached 1.75 million units, which is expected to reach 2.5 million units in the whole year, accounting for 30% of the total number of passenger vehicles. Combined with cross-type passenger vehicles, the annual production and sales of self-owned brand vehicles can reach 4.5 million, accounting for 45% of the general passenger vehicle market. This has provided strong support for the development of the parts and components industry. According to statistics, self-owned brand automakers purchased 52.8% of their auto parts. Again, the opportunities brought by the global financial crisis. The financial crisis has brought challenges to the export of vehicles and brought opportunities to integrate global parts and resources. Geely’s acquisition of an Australian transmission manufacturer and Beijing West Heavy Industries’ acquisition of Delphi’s business is proof. While facing three major development opportunities, China's auto parts industry also faces three challenges. The first is small scale, weak strength, and a serious shortage of research and development capabilities. Second, the cost pressure brought about by fierce competition. The third is the technical progress pressure brought about by the rapid increase of standards. To meet these challenges, I believe that auto parts companies should start small and grow stronger. In China, the auto parts industry has basically been liberalized. 80% of high-end products are produced by foreign companies or joint ventures established by multinational companies in China. China's auto parts enterprises can only grow stronger in the fierce competition, and only when they reach a certain scale can they become stronger. The development of the auto parts industry is also inseparable from policy support. The government must actively promote the merger and reorganization of the parts and components industry. As long as the government and enterprises formulate correct countermeasures, China will surely have a number of powerful and outstanding autonomous auto parts enterprises. compression fittings 's ring has double anneal,It is much better for seal.compression fittings,Connex compression fittings,Plumbing compression fittings compression fittings,Connex compression fittings,Plumbing compression fittings Taizhou Runde Company , https://www.zjbronzefittings.com
Automotive Parts Industry Faces Three Opportunities and Challenges