Platformization is getting closer and closer to local parts and components companies

“As the number of first-generation models of multinational car companies in China is increasing, more and more local components companies will feel the impact of the platform.” Chief Engineer of China Auto Parts Industry Corporation, China Automobile Association and Automobile Zero President of Component Chain Co., Ltd. and Ning Xiaoyang, General Manager of China Automotive (Shanghai) Auto Parts Investment Co., Ltd.

“For multinational car companies, the platform strategy was implemented very early. The reason why domestic companies are more concerned now is because the overall platform development strategy of multinational companies has changed, and its global market focus has shifted to China.” Xiao Yang is a veteran automaker in China. He once served in the purchasing departments of four major multinational car companies, including Ford and Peugeot Citroen. He deeply felt the changes in the global procurement of multinational car companies in recent years. “Our initial difficulty in localizing components was very difficult because of the strategic constraints of car companies' platformization, because at that time the market centers of multinational car companies were still in the European, American and Japanese markets, and the suppliers involved in the development were also there.” Ning Xiaoyang told reporters that platformization was playing its role. The rapid growth of the Chinese market has already caused its status in the global market of multinational companies to change. Many startup models of car companies are increasingly considering the needs of the Chinese market, and the platform strategy will increasingly consider domestic Parts suppliers.

“The platform strategy is a very good opportunity for those multinational parts and components companies with sound R&D and production systems in China. It is definitely a challenge to most local suppliers.” Ning Xiaoyang told reporters that only with simultaneous development capabilities For example, not only does the company require strong R&D capabilities, but it also requires parts and components companies to have a certain understanding of the entire vehicle plant development system. These include engineering language matching, software systems, communication protocols, patented technologies, and original platform technologies. Learn and so on. In addition, there are also differences and obstacles in time difference, language, and cultural background in the communication and exchange of synchronous development systems among local companies.

However, in Ning Xiaoyang's view, platformization is only one of the many challenges that domestic auto parts companies need to face. At present, multinational parts and components companies are already changing their monopoly on technology and market, and the development of local parts and components companies will become increasingly difficult. He called for the country to formulate more scientific and implementable strategic measures in the development strategy of the parts and components industry.

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