Shanghai Auto Parts Industry Takes the Road of "Neutralization" Development

From "localization" to "globalization" Shanghai's auto parts industry has embarked on a "neutralized" development path Faced with the increasingly globalized, market-oriented, and diversified Chinese auto parts market, it is not difficult to find This is an indisputable fact: Shanghai's auto parts and components enterprises, which were once the only local Shanghai Santana sedan, are now emancipating their minds, blazing new trails, and diligently cultivating the market for auto parts in China and the world. The "neutral" development path.
Turning over the history of supporting auto parts development in Shanghai Automotive Industry, people are delighted to see that in the past 10 years, the range of auto parts companies in Shanghai has changed from the “localization” of “single wood bridge” to the “internationalization” of “Hongzhuang Road”. As a result, the products of many parts and components companies are not only for Shanghai Volkswagen and Shanghai GM products, but also for major domestic vehicle companies such as Guangzhou Honda, FAW-Volkswagen, Shenlong Fukang, Changan Ford, Tianjin Toyota, and Shenyang Jinbei. What is most encouraging is that the strategic perspective of Shanghai auto parts companies is scanning the world auto parts market. A large number of competitive and high-quality parts and components are continuously entering the OEM market in North America, Japan, etc. The outward direction of industry is constantly increasing.
It is understood that at present, over 80% of the parts and components enterprises of SAIC Motor are supplied by domestic and foreign large vehicle companies. The market share of over 30% is out of the market, including Natiefoss, United Electronics, and Easy. The supporting rate of Tongtong, Brake System, Shangshi Transport, and Steamed Tooth Plant is as high as 60%; Xiaopu Auto Lighting, Yanfeng Visteon, Shenya and other 25% of the spare parts enterprises are located in Chongqing, Wuhan, Changchun, Guangzhou, etc. A joint venture factory was established to achieve “production area sales”; parts produced by Yanfeng Johnson, ZF, United Electronics, NTT, Shanghai KS, and Jin Heli entered into the international market. Last year, SAIC Motor's export volume reached 250 million U.S. dollars, which is expected to exceed 300 million U.S. dollars this year.
The “neutralization” development path for Shanghai auto parts is a challenge for SAIC Group to actively respond to the WTO and economic globalization. It adheres to the “globalization strategy” of “bringing in” and “going out” and the implementation of “striving for encirclement”. The result of the strategy. In the late 1990s, facing the wave of economic globalization and the new pattern of “6+3” in the global automotive industry, SAIC leaders deeply realized that SAIC must maintain its leading edge and must integrate itself into the global economic cycle to accelerate internationalization. , Continuously improve international competitiveness, otherwise it will be internationalized. To this end, a global strategy of "bringing in" and "going out" is proposed: "bringing in" to implement "three major changes" and "going out" to achieve "three major breakthroughs." The parts and components companies are required to implement the strategy of “crossing the sea and transcending oceans” and “striving for encirclement”. They must step out of Shanghai and seize the commanding heights of the domestic market; go out of the borders and provide services for the world’s auto industry. It is precisely based on the global business strategy that the Shanghai Automotive Industry Parts and Components Corporation aims to become a zero-grade supplier, focusing on the theme of “strengthening and expanding the market”, striving to improve its core competencies, and thus improving its core competitiveness. A new breakthrough in "neutralization" has been achieved in the range of parts and components.
Experts believe that the “neutral” development trend of auto parts supporting services is unavoidable. This is the only way for the development of auto parts industry in China. It is to break the regional protection, market separatism, and technical monopoly without competition and promote the health of auto industry. Development is undoubtedly of great significance. In the past few years, the giants of the international auto industry, such as GM and Ford Motor Company, separated parts from their vehicles, and Delphi Automotive Components and Visteon Components have been established one after another. They have succeeded in the globally diverse market competition. The auto parts supporting system in Shanghai is gradually formed on the basis of localization of Santana cars, with obvious group characteristics. Although Shanghai auto parts companies have made great progress in the "neutralization" of supporting services, there is still a long way to go before they are truly "neutralized." Maybe the Shanghai auto industry can only take the "surgical operation" of Shanghai auto parts companies from the system and mechanism with the boldness and courage of the "strong warriors" in the same way as GM, Ford and other international auto giants. The development of "neutralization" is smooth.