At present, multinational automobile companies mostly adopt global sourcing, global production, and global sales strategies. This strategy has finally led to the formation of global auto parts market integration trends, which will allow Chinese auto industry's parts to enter multinational companies. Global Sourcing System
The three-day trade fair was busy with Larry Beard, as the Director of International Procurement of British Rover Motors, and the first China Auto Parts Transnational Purchase & Trade Fair held in Shanghai from March 25 to 27. He strongly lamented the charm of China's auto parts supply market.
“Rover attended this fair to find new suppliers. On the first day, we had contact with 100 Chinese parts suppliers. Due to limited time, we could only collect information from some manufacturers. I didn’t expect China to have such a Many parts suppliers came to negotiate,†said Larry Beard, excitedly and helplessly.
Pan Mingyi, purchasing director of Valeo, the top auto parts supplier in Europe, said that this time, a total of 150 Chinese parts suppliers were negotiated. Valeo first analyzed these companies and then confirmed the inspection.
The above are just two examples of this meeting. According to Pan Jianjun, general manager of the Shanghai International Advertising Exhibition Co., Ltd., the organizers of this year's event were from the United States, Britain, Germany, France, Austria, Japan, Thailand and India. Twelve multinational purchasers from eight countries signed up to participate, while the face of them was more than 2,000 Chinese auto parts suppliers.
mutual attraction
The multinational buyers include Delphi, the world's largest auto parts supplier, Valeo, Europe's top auto parts supplier, and Bosch, together with Rover, the world's largest manufacturer of finished cars in the industry, and the world’s largest automaker. Safety system manufacturer TAKATA, USA's largest automotive electronics manufacturer WAI, India's largest auto parts supplier LUCASTVS, and the world's largest bearing manufacturer INA, etc., the vast majority of companies are the first time to come to China to participate in cross-border procurement.
Therefore, both parties are full of novelty and eagerness for each other before coming into contact with each other. For multinational buyers, this is an initial judgment on the overall level of Chinese auto parts suppliers. For domestic parts suppliers, this will be The best time to integrate with international buyers.
Finally, there are 17 provinces and cities including Shanghai, Beijing, Tianjin, Shenzhen, Chongqing, Zhejiang, Shandong, Jiangsu, Hubei, Sichuan, Hebei, Liaoning, Ningxia, Jilin, Heilongjiang, Fujian, Inner Mongolia and Gansu including Wanxiang Qianchao Co., Ltd. 333 companies, including domestic well-known auto parts manufacturers, such as China Southern Industrial Group and Harbin Aircraft Electric Manufacturing Co., Ltd., have successfully matched one another, totaling 1,254 matching meetings.
Cost temptation
Currently, multinational car companies in the world mostly adopt global sourcing, global production, and global sales strategies. This strategy has finally led to the formation of a global automotive parts market integration trend, which will allow more parts of the Chinese auto industry to enter Multinational corporations' global procurement system.
However, the most fundamental reason why multinational buyers enter China is low cost. Larry Beard is also outspoken about this. Finding a lower-priced component supplier is the motivation for his current trip to China. For example, he said that purchasing auto parts in China would save 25% to 30% compared with the United Kingdom. In comparison with other parts of the world, China’s advantage remains obvious. Such as South Korea, India and South Africa. South Korea's parts and components have higher technological content, but the cost is also high. India and South Africa have similar costs compared to China, but China is even better in quality, transportation and development.
Pan Mingyi also believes that with the rapid development of the Chinese auto market, Chinese parts manufacturers will gradually expand their advantages and their strength will gradually increase. Pan Mingyi also left a deep impression on the flexibility and enthusiasm of China's spare parts companies. He believes that the working hours of Chinese parts companies are very flexible, and they can sometimes work continuously for 7 days, which can effectively ensure the timely supply of orders.
Gravity shift
Due to the rapid development of the Chinese auto market, it is rapidly growing into a large automobile and component manufacturing and consumption country. The world's auto and auto parts giants have established their manufacturing bases and global procurement centers in China or have focused on procurement in China.
Delphi and Bosch have entered China for many years and have established several wholly owned companies and joint ventures. Pan Mingyao stated that Valeo has been in China for four years, and has been pursuing large-scale procurement in China for two years. The Valeo Asia office moved to Shanghai three years ago, and Valeo's procurement focus will gradually shift to China in the future. He revealed that Valeo's procurement target in Asia this year is 150 million euros, of which 80% will be placed in the Chinese market. Larry Beard also said that Rover currently has 30 parts suppliers in China and will increase its procurement efforts in China in the future.
In addition, Shanghai International Automobile City plans to invest 500 million yuan to build a global auto parts procurement center will also greatly facilitate multinational buyers to place the global procurement center in Shanghai. It is understood that once this platform is completed, hundreds of billions of dollars of domestic spare parts market and tens of billions of dollars of international purchase orders will all converge here, and domestic components will flow to the rest of the world.
The gap is obvious
Although the situation of China's auto parts supply market is promising, the existing problems are still outstanding. Larry Beard believes that China's auto parts suppliers are uneven, with good and bad, but there is little difference between foreign parts suppliers. He believes that China's parts and components and multinational giants still have a big gap in quality, project management and design capabilities. Rover’s China-based suppliers will also use technical guidance and only after special technical training will they reach Rover. The required parts standards. Pan Mingyi also believes that the main difference lies in the R&D capability. Due to the large number and small scale of China's spare parts companies, it is determined that the company's supporting capabilities are limited and the production scale cannot meet the requirements of international spare parts purchasers.
Pan Jianjun also said that due to the matching of the buyer's requirements at the meeting, he had to see the gap between the buyer's requirements and the many suppliers' own qualifications. All buyers, the minimum requirements are at least ISO900 certification, foreign trade experience. What's more, it requires companies to have independent materials such as laboratories and other quality requirements. A large number of companies have been screened out for participation, which is virtually a stimulus and an incentive for them.