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China to become a powerful vehicle parts must be built in power as a precondition 3
 

With the rising prices of production factors, the cost of self-parts enterprises gradually increased. The foreign-owned and joint parts business continues to expand the scale and research and development continues to advance, but makes the cost continues to drop.

    Second, with the improvement of environmental standards and monitoring the strengthening of independent businesses have formed parts of the dual pressures of technology and cost.

    Xu Changming said the expression of the future will pay more attention to energy-saving products and development of environmental protection, countries in this regard will be to increase supervision, which means that automotive products energy-saving technologies need to continuously upgrade, give virtually independent brands in the technology and cost pressure.

    The third challenge comes from the popularity of modular production, will form a growing independent brands of technical barriers.

    In response to these challenges, Xu Changming, gives the following recommendations:

    First, the Government in line with WTO rules, to give greater support to independent brands.

    Second, the domestic parts companies together for a number of key components and technology development and research.

    Third, strategically speaking, do first big do strong. Done only in the size of the product after the more powerful technology research and development, as well as to reduce costs through economies of scale and so on.

    Fourth, give full play to the strength of Automotive parts enterprises in order to promote development and growth. Now many auto parts companies are affiliated group companies, such as FAW, Dongfeng, SAIC and so on. In particular, SAIC, set up their own parts suppliers very powerful team.

    Fifth, the domestic auto group in the acquisition of foreign auto companies, it would also buy some spare parts enterprises to become their own wholly owned, which will continue to grow the ranks of the domestic parts companies.

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