The world's major car companies have supply system reform, they implement the global production and global sourcing. that is multiple auto parts manufacturers purchase into the supplier purchase system for the minority; a single steam car parts purchasing into a module purchasing ;the implementation of domestic procurement into global sourcing. The reform of vehicle purchase system should fit with auto parts’ manufacturers constantly. Automobile spare parts manufacturing enterprises not only require to widen their strength, improve the ability of product development, system development, system supply, but also to shorten the development cycle and provide quality cheap products.
The increasing fierce price war of whole car market is nibbling the profit margins of parts industry, At the same time, the demand of reducing costs and ensuring profits have become increasingly harsh. However, the output value of China's auto parts industry is large in scale, but there isn’t scale effect, so the integration and restructuring of the auto parts industry is imperative.
3, Market concentration is higher which it will appear the development of supply chain
Market concentration is higher, OEMs increasingly tend to be modular and systematic procurement. The collaboration of suppliers is more closer, which it makes the supplier system of global automotive parts evolves to the pagoda type structure. At last, the manufacturer responsible for supply chain management will make the cooperation of supply chain become more standardized.
In order to reduce costs and occupy the market, many automotive multinational companies have the ideas of operation globalization. European auto parts production enterprises invest overseas to make the international development; North American auto parts manufacturers are invested in Europe, which would also like to expand in eastern Europe market; Japanese car companies also continue to establish their own branch on a global scale. Emerging Asia is a major focus of automotive Multi-National Corporation competition. China is the battleground.
For the development direction of China's auto parts , the 12th five-year plan putted forward that auto parts is one of the four big development, the key problem is to improve the capacity for independent innovation so that we can achieve the breakthrough in key assembly technology and electronic technology.
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