Ministry of Science and Technology: Building its own brand based on parts and components


Recently, He Jixiang, Director of the Research Office of the Ministry of Science and Technology, stressed at the 2006 China Automotive Engine High-Level Symposium that there is a new trend that is worthy of attention: multinational corporations are leading large-scale and domestic industries, especially Construction machinery in the machinery industry performed the most.

He Yuxiang said that the reports sent by Hualing Heavy Truck to the relevant state departments on this aspect have attracted the attention of relevant departments. As an industry with the fastest growth and rapid development in China, multinational corporations have long been the market for construction machinery in China; our current mainstream companies such as Xugong, Liugong, Xiagong, Shangong, Sany Heavy Industry, Zoomlion All of them are already leading companies in terms of technology, strength, and scale. With the acquisition of XCMG by Carlyle of France, the trend of foreign investment in the construction machinery industry, mergers, and acquisitions in China's construction machinery industry will intensify. This requires Chinese entrepreneurs to demonstrate sufficient morale and courage to become the national machinery industry as a whole. The firm strength of benefits and long-term interests.

He Xiangxiang also said that with China’s great emphasis on independent innovation, the country strongly supports and develops the automotive industry and encourages the development and growth of national automobile companies. The government has further adjusted its automobile industry policies, such as the regulation of vehicle tariffs, and has immediately attracted multinational corporations. Apply high pressure to us. Now, the economic behavior of multinational corporations in China has changed, mainly reflected in three aspects: the past joint ventures are developing in the direction of sole proprietorship, and the participation has become a holding company; the acquisition behavior has become increasingly fierce. This new trend in various industries, ranging from beverages, packaging, cosmetics, to the core pillar industries, such as 98% of large aircraft, 70% of operating systems, 90% of microprocessors, 80% of automotive-related tires Must rely on imports.

It is imperative for China to form and master core technologies capable of resisting foreign “invasions” as soon as possible. He Xiangxiang explained that in the automotive industry, the key development direction is low-energy, new energy vehicles, focusing on research and development of alternative fuel vehicles, hybrid vehicles and fuel cell vehicles; development of vehicle design, integration and manufacturing technology, power system integration and control Technology, high-efficiency and low-emission engine and fuel cell engine, power battery, drive motor and other key parts and components technologies.

As the basis for independent innovation in the auto industry, in 2005, China’s parts and components achieved export volume greater than imports for the first time. Although the gap between value-added and sales revenue was still relatively large, it was already a very good achievement; In terms of output value, exports reached 8.5 billion yuan, which is also higher than the imported 8.4 billion yuan.

He Jixiang said that China has now formed a relatively complete component system and has formed some strong industrial bases for parts and components, such as the Yangtze River Delta base; on the other hand, our core components are being broken, such as last year's offline The Chery 2.0L petrol engine, the high-power diesel engine represented by FAW Aowei, and Geely's successfully developed stepless transmission and so on. However, the parts and components industry is also facing tremendous pressure and challenges. The strength of local companies is still very weak. The total sales of our domestic 4,500 companies are only equivalent to the 2005 sales revenue of the German Bosch.

He Xiangxiang emphasized that domestic brands of parts and components should be developed as soon as possible to change the situation of OEM processing; OEMs, as part of a large lifting platform, are the key to the development of parts and components through the use of complete vehicles.

The Korean automotive industry has had a lot of inspiration and influence on China. Last year, the State Council organized a delegation to go to South Korea, India, and Hong Kong and other places for research. Related people felt deeply about it. It was only in mid-1982 that China began to truly develop the car industry; due to industrial policy restrictions, China was forced to embark on the path of market-for-technology. In China's current annual output of 5 million, its own brand accounts for only 28%; there are few real world brands. He Jixiang said that the government has now focused its engine, automotive electronics, and new materials on three major developments in the future.

In a follow-up interview, the reporter learned that the guests participating in the high-level seminar of the automobile engine unanimously believed that to implement independent innovation and build national brands, it is necessary to resolutely break the blind worship of GDP, and increase the country’s ability to research and develop technology. National brand building investment and support efforts.

It is precisely because of past assessments of corporate leaders that blindly follow profit targets rather than creation, R&D, and investment, so what the company has to do with assessment indicators. After the simple cloning and imitation of technology and models, they can be put into the market and be able to sell immediately. There is no incentive for technology research and development.

People in the industry believe that the evaluation of the performance of the central enterprises should be extended to the local governments where the companies are located. Because the interests of the local governments are inconsistent with the interests of the country, local governments often only look for one-sided pursuit of GDP, and neglect the long-term interests of the country. It is precisely because of this that GDP is best reported in two ways, all in one, or reported to national industries. This gives a good assessment of the competitiveness of ethnic enterprises.

Some experts believe that China’s GDP worship has caused excessive environmental damage and it will be difficult to recover over a long period of time. Because 82% of our country’s GDP is exported to foreign countries, GDP is not equal to the improvement of people’s living standards and does not mean economic growth. .

Others believe that if you want to keep your brand, you have to invest in keeping it. Throughout Europe, only the British automobile industry is not protected by the government and as a result the British car is now over. Therefore, the role played by the government is crucial.

However, some people think that the prospect of independent innovation in China is not optimistic. It is understood that there have been national leaders, scholars and other high-level individuals to discuss the independent innovation, in favor of the development of national brands accounted for 50%, but in favor of buying their own brand is 0%. This shows that national brands still lack trust and satisfaction in the minds of domestic consumers.


View related topics: independent brands, where to go?


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