On September 24, the 2009 China International Auto Parts Expo (hereinafter referred to as CIAPE) was opened at the China International Exhibition Center, and Denso, Japan's largest auto parts company, brought its products to the Expo.
It is worth noting that the content displayed by Denso (China) in addition to the company’s traditional business in China is more than the performance and product of providing domestic automakers with independent brands.
“The products we have exhibited will fully support China's own brands,†said Yamada, general manager of Denso (China). “Now, Denso is actively cooperating with major auto group's own brand business.â€
Analysts believe that under the precarious business situation of Toyota Motor Co., Ltd., the main vehicle partner in China, Denso (China)'s strategy has begun to quietly change, namely to develop its own branded automobile business to respond to the rapidly growing Chinese market.
Full product display
It is reported that at this CIAPE exhibition, Denso (China)'s booth area reached 150 square meters, and Denso installed the most of the CIAPE exhibitions, demonstrating the Denso brand products featuring energy conservation and emission reduction. In the field of commercial vehicles, Denso exhibited a common rail system with low fuel consumption and strong power. In the field of passenger cars, Denso exhibited provincial power air conditioners, XL small engine EMS, G-BOOK navigation devices, and sheet metal spark plugs. In motorcycles, CDI systems, ignition systems, etc. were exhibited.
It is worth mentioning that Denso (China) has also set up a special booth in the exhibition area to introduce the after-sales products, after-sales service system, after-sales service concept and target of Denso (China), as well as the special maintenance network for Denso. Denso (China) stated that it hopes to help the Chinese automobile industry further deepen its understanding of Denso brands through the CIAPE exhibition, an important platform for international exchanges and cooperation between the Chinese and foreign automotive industries.
Cooperation with independent brands
Denso began overseas operations outside Japan in the 1970s and began establishing joint ventures in China in the mid-1990s. Currently, there are 25 companies in China, including sales companies, manufacturing plants, and software development companies.
Although the amount of electric power installed in China's own brands is still very small, Denso (China) stated that it is very optimistic about the development of this market.
The reporter learned that at present, Denso has begun to supply petrol EFI and diesel common rail products to China's own brands. In terms of information navigation, Denso also began to further strengthen its cooperation with domestic self-owned brand companies. The cooperation approach includes providing products to independent brands and launching technology research and development with independent brands. Denso (China) owns a technology R&D center in Shanghai and mainly develops air-conditioning, common rail, and navigation products. It is reported that Denso China will make every effort to strengthen the development of this R&D center this year.
Yamada said that China’s own brand models mainly consist of three major systems: First, models developed by Chinese indigenous brand companies, such as Geely, BYD, etc.; second, domestically developed joint-venture vehicles developed by the two parties for domestic localization; and third, ownership. The Chinese brands of the joint venture's own brands, such as FAW's Pentium. With the rapid growth of China's auto market, self-owned brand models will become the main target of parts and components business services in the future.
"Now, our products have begun to be equipped with China's own brand models. After the next year, there will be more self-branded models equipped with electric products in the Chinese market." Yamada told reporters, "There are still several ongoing The project plans to further expand cooperation with independent brands."
The future strategy is quietly changing
As a famous international parts and components company, last year, the global business of electric equipment was also affected by the financial crisis and declined. In the Chinese market, due to the low sales of Toyota's models in the first half of this year and the high degree of dependence on Japanese cars, the business in China has been greatly affected. Denso also expressed its frank attitude: “In the first half of the year, our business was below the growth rate of the entire market, but we will try to catch up with the growth rate of the market in the second half of the year.â€
In the first half of this year, as the global auto market remained sluggish, the Chinese auto market experienced rapid growth, bringing more of the attention of international parts and components companies to China. Denso is no exception. At this year's CIAPE show, Denso has shifted its product display focus to domestic self-owned brands, demonstrating that the future strategy for Denso's installation in China has shifted quietly. At the same time, it means that 70% of its business in China depends on the electric equipment of Toyota and other Japanese car companies. Will focus on adjusting this supply ratio.
To this end, Denso (China) said that in the future, it will carry out system reforms in terms of business, cost, and management. In terms of business, Denso (China) will further expand its sales to its own brand cars on the basis of existing customers, and provide technology that meets national emission standards in the commercial vehicle sector; in terms of cost, it will focus on low cost and localization. Technical development; in terms of management, starting with quality management, strengthening the management of procurement sources and promoting independent management.
The reporter learned that in addition to the Chinese auto parts business, the company will continue to strengthen its after-sales service in addition to its own branded auto parts business. First of all, in the aspect of spare parts sales, system products cover the entire aftermarket through manufacturers' supply channels, generic replacement products through the Auto Parts City channel, and repair products through the agency's network channels. Secondly, in terms of services, by 2010, Denso (China)'s common-rail system repair and repair shop will expand to 60, and it plans to start the repair of injectors in the first half of 2010; the original automotive air-conditioning, bus air-conditioning, The number of service shops for refrigerators and compressors has increased from 202 to 450. In addition, the repair of navigators will be implemented by Denso (China). Denso (China) said that in the future, it will also cooperate with the market for new technologies and new products to provide after-sales services to customers and further strengthen the advantages of Auto Parts City's channels and agency stores.
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