Domestic auto parts profitability rose to the best level

Adhering to the localization of core auto parts is the first goal of the development of auto and parts companies in recent days. In order to improve their own strength and expand the international market more quickly, domestic auto parts enterprises must accelerate the integration with foreign companies through various means to improve product quality. Improve competitiveness. China's local parts companies and domestic and foreign companies have several states: foreign capital, joint ventures and domestic capital. The advantages of technology, scale, brand and traditional customer relationship of foreign-funded parts companies are very obvious. However, many local companies are not bad in some technical fields due to their obvious cost advantages. While retaining domestic customers, we are actively developing foreign markets and are very competitive in the industry. For example, Torch Spark Plug has become the number one and first brand in the country, and it is hopeful to grow into one of the world's major manufacturers in the next few years. The joint venture combines the advantages of domestic and foreign-funded enterprises and is a transitional state of domestic and foreign enterprises. While domestic auto parts companies continue to expand their markets in traditional countries such as the United States and Japan, they will further expand their markets and strengthen integration in Southeast Asia, the Middle East, Russia, Europe and Africa.

The profitability of the auto parts sector has recovered to the best level in 2007, with a slight increase, and economies of scale are gradually emerging. With the further growth of China's auto industry production and sales, the profitability of the future parts sector is expected to further increase. It is estimated that the overall revenue of the auto parts sector will reach more than 26% in 2010, while the profit growth will exceed 50%, and the average sales gross margin will reach 23%.

At present, the development trend of China's auto parts industry is very good. The auto parts industry is a typical scale-effective industry. Only when it reaches a certain scale, manufacturers can exceed the break-even point to achieve profitability. In 2009, driven by the spurt growth of China's auto industry, auto parts listed companies achieved rapid growth in revenue and profits. The profit growth rate is much higher than the income growth rate, and the scale benefit characteristics are very obvious.

The structural adjustment of the component industry should focus on the themes of energy conservation, emission reduction, safety and new energy vehicle development; through adjustment, change the current small scale, scattered, low level of duplication, weak technological innovation capability, and extensive management to achieve industry Full upgrade. All parts and components enterprises should improve the quality of the enterprise in an all-round way; continue to improve the relationship between the whole vehicle and parts; guide and promote the leading and internationalization of leading parts and components enterprises; support small and medium-sized parts and components enterprises to take specialization, small enterprises, and large The road of the market; we must work hard to adhere to the four aspects of opening up to the outside world and strengthening foreign cooperation. Only in this way can China's auto parts industry become bigger and bigger, and the level of China's auto industry can become stronger and stronger.

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