International parts and components companies take the low-cost route to seek independent brand support

The financial tsunami swept the world, Europe, the United States, Japan, the world's major automotive market continues to slump, this year has almost hit a dozen years of downturn records. In the face of global market difficulties, international suppliers of spare parts will rely more on giants in the Chinese auto market. Some multinational parts and components companies have begun planning to support their own brands after obtaining matching opportunities for joint ventures.

The relevant person in charge of the Department of Chassis and Safety Systems of the Continental Group disclosed at its car safety driving experience event that the Continental Group reduced the cost by redesigning the hydraulic brake system products produced in China, thereby lowering product prices and winning more domestic customers. .

An industry person once employed in an international parts and components company said that now multinational companies are starting to enter the Chinese auto brand enterprises, and they are developing low-end industries. With attractive prices and comprehensive technology, they have more domestic customers. This will certainly have a huge impact on China's original low-end parts and components.

It is understood that the world's spare parts giants Delphi, Bosch, China and Denso have such plans, and focus on developing low-cost, low-cost and highly-usable products to attract their own brand car companies.

According to reports, these companies' R&D products are carried out on global product development platforms, and they are developed and produced according to different needs. The new products developed in the company are called economic products. They are distinguished from the high-end products in the past. The price is slightly higher than the current domestic low-end product price, but it has advantages in technology and quality than domestic components.

The Continental Group, which has a large market share of brake system products, is mainly based on joint ventures in China. In order to support its own brand OEM manufacturers, its R&D team in Shanghai redesigned the caliper and vacuum booster/brake master cylinder of the hydraulic brake system. In July this year, Continental Group put into mass production at the hydraulic brake system plant established in Changshu, Jiangsu. According to related mainland sources, the cost of redesigned products has fallen by about 15% compared with the original products.

Although China, Tianhe, Bosch and other companies' brake system products account for most of the market share, their own brands still use domestic suppliers' products in large quantities. In order to obtain orders for self-owned branded vehicle companies, international suppliers have taken measures to reduce the price of products to attract self-owned brand car manufacturers. This approach has become a competitive strategy for them.

The Continental Group revealed that they have received orders for the supply of brake calipers and a 10-inch vacuum booster/brake master cylinder for an independent brand compact sedan with an annual output of 80,000 vehicles. The supporting brake products will be produced by Shanghai Automotive Brake System Co., Ltd., a joint venture between Continental Group and Shanghai Automotive. The Continental Group stated that in China, Continental Group’s market share of brake caliper products is 16%, and vacuum booster products account for 20% of the market share. Renewed series of products have been developed and are ready to enter the market.

According to analysis by industry insiders, former multinational auto parts manufacturers believe that Chinese automakers have no scale, their products are low-end, and they are sensitive to price. Now that China’s auto market is huge, the number of exports has increased, and multinational giants have begun to re-examine the importance of independent brands for their development. Sex.

In addition, foreign parts companies are technically monopolized. Once the product development of a multinational company has been successfully put into the market, if the products developed by the multinational giants are put into the Chinese market, it will have an impact on the original component companies that have grown up with self-owned brand automobile manufacturers.