Home > News > Industry News

Technology Boosts the Rapid Development of Auto Parts Independent Brand Enterprises in the New Market Environment


By 2022, the impact of the pandemic in the global manufacturing industry has not yet dissipated, especially the problems caused by the shortage of raw materials supply, affecting all aspects of the manufacturing industry. The prices of tires and lubricants have been rising and adjusting since the year before last, and the short-term impact of automotive chips has even limited the production and sales of new vehicles by host manufacturers. The changes in upstream industries have a profound impact on mid and downstream enterprises and the market. Stabilizing enterprise performance and "surviving" is the current situation of many small and medium-sized enterprises. With the stability of domestic production order and the uncertainty of foreign epidemics, market opportunities for domestic manufacturing industries are quietly approaching.

The development of China's automotive industry has only a few decades of history compared to foreign brands that have been around for a century. Not only is the entire vehicle manufacturing at a disadvantage, it is also limited by foreign brands in the field of components. This mature process has quite complete patent protection, and there are no unexpected situations. This kind of gap is difficult to narrow. China has already leapt from Japan to become the second largest economy in the world, and is expected to surpass the United States as the world's largest economy within a decade. The epidemic has affected the global automotive industry chain, and China is the first country to restore full supply chain capacity. This epidemic has caused market surprises, leading to many multinational auto parts companies having to lay off workers and reduce production, and increase the Chinese market. Firstly, the domestic epidemic has been fully controlled, and secondly, China is the future direction of the world economy. Domestic local auto parts manufacturing enterprises have inherent geographical and policy advantages, and can fully seize the opportunity to expand channels, expand enterprises, and expand brands

Taking vehicle manufacturing enterprises as an example, the rise of new energy vehicles is a model for overtaking on curves. Compared to traditional automobile main engine factories, domestic automobile manufacturers are inferior to foreign ones in terms of both technical reserves and brand awareness. After all, it is quite difficult to catch up with and surpass a century old industry that has developed its technology to the extreme in decades. "New energy vehicles belong to the new era of products, with engines, gearboxes, and chassis being the three major components of traditional vehicles. We only need to narrow the gap with foreign manufacturers in terms of chassis. Other important components are all on the same or similar starting lines. Whether it's research and development or design, we need to strive to become the standard setter."

Turning to the automotive parts industry, in addition to several well-known large enterprises, domestic automotive parts enterprises are more small and medium-sized vulnerable parts manufacturing enterprises, and the market is more small and fragmented. Most of the products produced by enterprises are low priced products lacking technical content. Of course, private enterprises are constrained by capital, technology, and talent. The core goal is to sell products, and to fight price wars is to be passive. On the premise that enterprises are primarily profitable, they must pick up easy and profitable products to do so. The market demand for vulnerable parts is very large, and the product technology is mature, but there are also many manufacturing enterprises pouring in. Everyone, think about it. Even in this type of market segment, is our product brand internationally competitive? Brand is one aspect, product quality is the key, followed by price. The current situation of most domestic automotive parts manufacturing enterprises is that they trade for low prices and lack core competitiveness. At this stage, due to the decline in production capacity in other countries, the overseas sales of products have increased. At this time, we need to consider what we can use to seize and stabilize the foreign market.

Traditional auto parts companies must follow market trends. New energy for vehicles is currently not a mainstream group in the market, but the growth scale of new energy for enterprises continues to increase. In addition to policy support, many engine manufacturers have announced plans to stop production of fuel vehicles, and some countries have also put fuel vehicle sales bans on schedule. In the future, the research and development of automotive components must be the leading direction of new energy for automobiles. Only by arranging the market in advance can we establish a brand image that is recognized by the public.

Currently, driven by the Internet model, automotive parts companies want to achieve good results, in addition to their own channels. However, today's enterprises are not only facing traditional channels, but also brand word-of-mouth driven sales. New media has gradually brought companies and car owners closer together, and short video platforms have enabled car owners to better understand the automotive aftermarket. The popularity of platform network maintenance allows car owners to choose their own accessories, choose the brands recommended by the platform, and choose other brands, so that the excellent product quality of component companies can generate public praise and dissemination. "Because of good quality, car owners will choose, and if more car owners choose, the product will have a brand effect.". The country has now entered the 14th Five Year Plan, and the development of automotive parts enterprises in the future needs to improve their technological level and innovation ability, and master the core technology of key parts. Under the policy guidance, independent brand vehicle enterprises will drive the development of downstream component manufacturing enterprises and increase the market share of domestic brands.
We use cookies to offer you a better browsing experience, analyze site traffic and personalize content. By using this site, you agree to our use of cookies. Privacy Policy
Reject Accept