China's auto industry and components development status

Now internationally recognized as the car powers such as Germany, Japan, the United States and South Korea, in addition to the powerful OEMs, but also has a strong parts company. Behind Germany's Volkswagen Bosch, Siemens, Japan's Toyota, Honda behind Denso and Aisin, the U.S. General Delphi, Visteon, South Korea by Mobis (Mobis) support. These parts enterprises in addition to strong support from the OEMs, has spared no effort in R & D investment in order to maintain its technology leadership. The most serious financial crisis in 2009 was nominated for R & D investment proportion of auto parts enterprises in the global R & D strong list companies an average of 5.1%, higher than the car companies.

Part of the local car prices are also gradually develop their own supplier system. HUAYU Automotive (600741.sh) is considered to be the stronger domestic parts listed company, its holding company, SAIC. Dongfeng Motor Group also has support for non-spare parts company's present, the 49 Dongfeng Department of Enterprise, to provide the engine assembly system parts, chassis and transmission, construction engineering products and services.

Chinese auto companies a financial and debt crisis sweeping the globe lack of well-known brand and core technology, bringing a golden opportunity.

Roland Berger Strategy Consultants, entitled "the taste of Chinese enterprises emerging economies, companies are buying auto parts enterprises in Europe," the study reported that the great interest of Chinese companies on the acquisition of a foreign parts enterprises in the past year only in the acquisition of the German-speaking The case grew more than doubled, and is now actively involved in negotiations on the acquisition of 20-30 German Parts Business. Based on publicly available information, this year, Chinese companies have been in Western Europe acquired 34 companies, the total deal size of up to $ 7.74 billion, five times the same period last year.

Keen on acquisition of Geely Please foreign R & D, first of all to pay big bucks to do the matching, even if made out of technical nor ask others, and future upgrades. It is based on this in May, Geely in 2008, set up Zhejiang smart Denso Co., Ltd., specializing in R & D and production of automotive electronics core technologies and related parts. To the end of 2010, Geely has cumulative production of self-developed body control system 10 million units. This will bring Geely is not only economic benefits, the cost reduced by 15%; more technical upgrading, change the Geely electronic control systems rely on the history of the external supply,Main products: car dvd player and car dvd , are with good quality.  complete the transformation from imitation to innovation marks the auspicious .

However, the Joint Secretary of the National Passenger Car Rao reminded to be alert to the bought technology is included with the patent, if there is no patent, even hundred percent buy the other shares of the Company, still need to spend money on technology.

Insiders suggested that countries should be on the automotive electronics industry, especially in key parts and automotive electronics industry to provide favorable policies to encourage and vigorously support.

Focus on encouraging domestic enterprises to mergers and acquisitions outside the core components of advanced technology enterprises and foreign R & D institutions, policies, funding support and help.