Five difficult cruxes for the start of auto and auto parts exports

From the Ministry of Commerce and Development and Reform Commission recently held in Changchun, held in Changchun, the "Extended Automobile and Components Export Symposium" was informed that China's auto and auto parts exports are still in the initial stage, facing some difficulties and problems, mainly in the following five aspect:

First, the share of exports in the world's total automobile and parts market is very small. According to the estimates of the World Association of Automobile and Parts Manufacturers, the total world parts market in 2003 was approximately US$1.2 trillion, of which Europe accounted for about 25%, North America accounted for 30%, and China’s share was minimal.

Second, production enterprises are low in outward direction and unbalanced in development. China's auto vehicles still do not have the strength to export, and the scale of spare parts exports is relatively small. Problems such as redundant construction, small scale, backward technology, and product replacement are widespread. The product concentration is low, the structure of the parts and components enterprises is irrational, and the proportion of electronic products with small scale but complete technological categories, low level of specialization, and high technological content and high efficiency is low.

The structure of the third export product is irrational. China's auto and auto parts export products are mainly labor-intensive products. High-tech products and high value-added products have a very small export volume. China's current electronically-controlled auto parts products, such as EFI engines, are core components of foreign countries. Solely-funded or joint venture manufacturing matching, the main purpose of these foreign-funded enterprises in China's production is to meet domestic needs in China.

Fourth, the quality of export products does not pass. The reasons for this are the lack of quality control capabilities, lack of experience in mass production, and lack of product development capabilities, resulting in poor quality of export products. The overall pace of quality certification for China's auto and parts companies is not fast enough.

Fifth, export service is weak. A company exporting products to an area, due to small quantities, high maintenance service costs, parts supply is not timely, and pre-sale and after-sales service are less than home, leading foreign users to lose confidence in the quality of Chinese auto and parts products and even lose orders.

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