Key points for the development of auto parts industry

Key points for the development of auto parts industry

1, Increase the development of key parts and technology and improve the added value of the product.

    One of the main advantages of China's auto parts exports is the low labor costs. However, in 2010, the majority of provinces and cities have increased the minimum salary standard, our employment costs are gradually improving, auto parts products in the price advantage is diminishing. Therefore, only increase investment in product development funds, strengthen the development of key components and technology, improve the technology and added value of auto parts products, can we obtain greater profit space.

2, Vigorously develop new markets while continually consolidate the traditional market.

    Our country always encourages the auto parts enterprises to expand foreign market and introduces a series of supportive policies. In such aspects as finance and export credit, the country gives strong support for national auto parts export enterprises and export bases, so domestic auto parts export enterprises should grasp the opportunity. They should strengthen the traditional vehicle markets in developing countries, at the same time, increase the market development in India, Brazil and Russia and try to occupy foreign markets and the middling and high level market of developing countries.

3, Attaches great importance to the e-commerce, reduce the trade cost .

    As we all know, e-commerce business not only can save a significant reduction in manpower, material resources, reduce transaction costs and inventory, but also it can create a free and equal competition environment and a wider space of cooperation for small and medium-sized auto parts export enterprises to enter the international market, so all of auto parts export enterprises should grasp this new business opportunities.

4, Reasonably set auto parts export price and avoid vicious competition.

    At present, some domestic auto parts production enterprises are eager to open the international market and often quoted prices far below the international average price. In fact, this is definitely not a wise move: First, the very low profit margin is not conducive to long-term development of enterprises; Second, in the eyes of some large companies, not the lower the price, the better it is. They maybe think the product quality without a reasonable margin will be greatly reduced. Therefore, in order to avoid the adverse consequences caused by disorderly quotation, domestic manufacturers must first grasp the international market before the quotation. In addition, the auto industry association should also organize auto parts export enterprises price self-discipline and against vicious competition.