New Policy Promotes Accelerated Development of Parts and Components Market

The new "Automotive Industry Development Policy" just issued on June 1 mentioned the development of spare parts and related industries to a very high level, resulting in the allegation that it was "stands at the height of the global automotive industry and pointed out that China's automobile industry has zero. The development direction of the parts industry." For this opportunity, parts and components manufacturers and distributors in Henan naturally did not remain indifferent. In the interviews in recent days, many people in the industry gave reporters a feeling of near excitement. Many people never forgot when they were interviewed by reporters. Words—spring is coming. “The production and distribution of auto parts in Henan all occupy a certain position in the country. Overall, the production of parts and components is better than that of the whole vehicle, and parts and components circulation is higher than the parts production in the country. This new automotive industry policy has brought parts and components production to a new height. It is an opportunity and a challenge for the auto parts industry in Henan, said Liu Xiaoming, secretary general of the Provincial Automobile Industry Association. Secretary-General Liu also pointed out that the development of the automobile industry in Henan is not particularly satisfactory. An important reason is that the basis for spare parts is not too strong. Without high-performance, high-quality components, it is impossible to have high-performance, high-quality vehicles. In this regard, there is a big gap between China and the developed countries in the automotive industry. An industry insider who has worked on auto parts for many years also said that although the new automobile industry policy does not describe “localization” or “real estate” in terms of parts and related industries, it “adapts to international industry development trends”. The formulation of “meeting the needs of domestic and foreign markets” and “trying to enter the international auto parts industry procurement system” is more comprehensive and open than localization and real estate, and is more in line with the history and status quo of the Chinese auto industry. This person also pointed out that in order to become a big country in the automotive industry, China must possess system development capabilities for key parts and components. It must be provided by specialized parts and components companies in a systematic and modular manner to meet the equipment needs of the vehicle. This is also the practice of the developed countries in the automotive industry. The argument that the new industrial policy encourages the separation of parts and vehicles has also made many parts manufacturers see a bright future. The CEO of a company told reporters in an interview that he had the deepest feeling about this article. This is definitely a rare opportunity for them to do a better job. “We have not joined any auto group and have been left outside. Because I firmly believe that in the case of full marketization, through full competition, not only can we improve product quality, but also reduce costs and enable us to grow quickly,” he said. An economist pointed out that today, Henan and China have two very good conditions for developing the auto parts industry: one is that some parts and components companies have achieved very good results; the other is the support of social forces, such as the military industry system. Universities, universities and research institutes all have a lot of research results. In these areas, Luoyang, Jiaozuo and Nanyang in Henan Province have certain advantages. The new industrial policy is also a boon to private enterprises. The formulation of “leading social capital into the production of auto parts and components” will allow more private enterprises to enter the auto parts industry. Henan's auto parts circulation occupies an important position in the country because of its unique traffic location advantage. The “corporate alliance” advocated in the new policy is a topic that many Auto Parts dealers talked about in the past few days. In fact, starting last year, with the trial of several auto parts giants in the country, Henan auto parts companies began to explore new models of their own operations, and alliances such as chains have become a success for many auto parts companies. The direction. As a bridgehead and an important transportation hub in the domestic Midwestern market, the auto parts market in Central Plains has also joined the fiercely competitive market trend due to its special geographical location. From the fifth place in the country, auto parts distribution can be seen as the national market in Henan. s position. However, as a whole, the characteristics of the individual combat, disorderly competition, scattered resources, and weak ability to withstand market risks are also the same as the markets in other parts of the country and have become the soft underbelly of the Henan auto parts market. In the spring of this year, some experts said at the Henan Auto Parts Chain Store Management Symposium that with the entry of foreign companies, the traditional auto parts companies' living space is getting smaller and smaller. The combination of strong and strong, the implementation of logistics and distribution, chain operations, to speed up the distribution of auto parts to form a concentrated resource, the advantages of concentration, is the only way for auto parts companies to become bigger and stronger. Some economists pointed out that corporate alliances will solve the problem of uneconomical scale in China's ubiquitous competition and increase the market concentration of related industries. At the same time, this will facilitate the country's management of automobile plants and it will also be a good thing for component manufacturers. As a single component company, its own development capabilities and funding sources may be limited. Engaging in an alliance can form a development center and establish a development platform. The new industrial policy stipulates: "The enterprise alliance must cooperate extensively in the areas of product research and development, production supporting cooperation and sales services, and reflect the adjustment of product structure, the optimization of resource allocation, the reduction of operating costs, and the realization of economies of scale and intensive development. Enterprises in enterprise alliances should no longer form alliances with other enterprises in order to consolidate the stability and market position of the enterprise alliance. The state encourages enterprise alliances to form an economic entity with assets as a link as soon as possible." In response, the company took the lead in implementing chain operations in the province. In an interview with reporters, an executive from an auto parts service company in Henan also said that the strong advantage of such a business alliance model is that its scale can ensure the advantages of service prices and service quality. It can successfully combine scattered and small-scale regional markets to form a huge and stable user market, so as to gain advantages with the powerful strength that independent operators cannot have. Secondly, the warehousing, distribution, and inventory allocation of the chain operation network are by no means comparable to those of the general independent business enterprises. It can scientifically use warehousing liquidity, effectively reduce material storage and capital occupation, and reduce operating costs.

Ф160mm Finger Joint Cutters

SICHUAN TELOS NEW MATERIAL TECHNOLOGY CO., LTD , https://www.sichuankenlarcutters.com