How long will domestic auto parts brands be encumbered by foreign capital?

The most important thing in the development of a company is to get out of its own brand. To help others to act as an agent is to help others work. However, the domestic independent brands are constantly being encumbered by foreign capital, constantly eroding the domestic independent brands, and even foreign brands occupying the top spot in China. Many domestic companies have become agents of foreign capital. They have unknowingly become migrant workers of foreign capital. In the face of the current situation, they have to wonder how long foreign brands will be encumbered by foreign capital.

How long will domestic auto parts brands be encumbered by foreign capital?

Mitsubishi, Bosch, Delphi, Visteon and other foreign "big names" occupy a certain position in China. Famous domestic independent brands are only Fuyao Glass and others. In the face of foreign companies, domestic companies have also made many efforts, but Still not achieving very good results, several major issues have always plagued the development of independent brands.

Small-scale, low-end enterprise products

Once upon a time, cheap was the biggest advantage of Chinese products. When this advantage disappeared, the self-owned branded parts and components companies went into dead ends. “Most of the companies with their own brands are small. Take air brake calipers as an example, a single product can only sell 50,000 or 60,000 a year, while a multinational component giant may sell 3 to 4 million units worldwide. There will be a huge cost difference, and how does a Chinese company recapture its cost advantage when its size is not dominant?

Consumer awareness worships foreigners

The ideological trend of the end-user "a foreign moon is more round" is reflected in the choice of components. In the same field competition with foreign-funded enterprises, it is the domestic consumption concept that often discourages parts and components companies. “Domestic users like international brands, domestic companies also tend to favor international brands, and always feel that international brands are stronger than their own brands. Export markets require the fitting of foreign brands. In fact, this is not fair. Our Assembly Line, raw materials It is the same as foreign-funded enterprises, and our second-generation automatic adjustment arm is technically not only not lost to foreign-funded enterprises, but also able to be even better. However, it is too difficult to change everyone’s familiarity with the strength of the company itself.India, South Korea, Japan Consumers favor their own brands, and government procurement also protects their own brands, but domestic government procurement of parts and components of their own brands can hardly be seen. When will this irrational consumption concept be eliminated?”

Own brand lacks government support

In recent years, many foreign-invested parts giants have set up factories in China. Foreign-funded parts and components companies are not subject to anti-dumping restrictions after localized production. They also receive support from local governments during the joint venture and cooperation process, as well as reductions in beneficiary countries. The tax policy can also receive high-tech reward funds from the country, and the treatment is even better than that of self-owned brands. "The Olympics was prosperous, the world saw China's self-owned brand vehicle, but its own brand parts were forgotten. The policy emphasizes more on localization, where are the opportunities for self-owned brand parts and components companies?"

In terms of engines, about half of the domestic self-owned brands are Mitsubishi engines that are put into operation in China. We cannot imagine that key parts such as engines lack their own brands. Chery, Brilliance, Geely and other national automakers can also develop their minds without worry. Foreign spare parts companies will “catch” your neck in terms of price, technology, supply, etc., so that you can't exercise your strength. Foreign capital is terrible, and you need to get rid of this situation anyway.