China's auto parts companies are rushing to seize the market

In the middle of August, the semi-annual report of the construction machinery related enterprises that have been released successively, let us still feel that “for the auto-distribution channel, our company is paying attention to and research.” Wang Zhiren, commercial director of Changchun FAW Fushun Group Co., Ltd. told reporters . On August 13, a number of auto parts and auto parts chain companies interviewed by reporters all said that breaking the monopoly of auto parts channels is a "big thing" in the auto aftermarket this year, which is very beneficial to the whole industry.

Currently, the NDRC's anti-monopoly investigation in the field of auto parts is deepening. On June 30, the Ministry of Communications issued a draft of the “Guiding Opinions on Promoting the Transformation and Upgrading of Automobile Maintenance Enterprises and Improving Service Quality”, demanding that the monopoly of supply channels be broken and the disclosure of technical information be promoted. At present, in addition to social maintenance companies, as well as car e-commerce, auto parts market and large auto dealers, aiming at the auto repair market, I believe that the auto repair war will soon erupt.

In an interview and investigation on the 13th, the reporter found that suppliers of auto parts have begun to accelerate the pace of entering the auto repair market.

New shuffling opportunities in the auto parts market

"The liberalization of auto parts channels has broadened the market channels of parts and components enterprises to a certain extent. However, after the monopoly of automakers is broken, the auto parts market must form new regulations. This requires the government to introduce more specific implementation rules as soon as possible." Han Jing, Secretary General of the Market Alliance General Assembly, said in an interview.

Breaking the channel monopoly and giving homogenous suppliers a chance to enter the market also provides a new reshuffle opportunity for the aftermarket to curb the breeding of counterfeit products. If homogenous parts enter the market in a large amount, the price will drop sharply compared with the original parts, and consumers may take the initiative to choose the same piece of materials after a period of time, instead of choosing cheap parts. Wang Zhiren believes that it takes a time for Chinese consumers to take the initiative to accept the same quality. For example, if a car is a Mercedes-Benz consumer, it needs to replace parts, and most of them choose to buy the original parts directly. In fact, the quality of homogenous parts is not bad, but the inherent concept of Chinese consumers will continue for some time. However, this concept will change as the automotive aftermarket is further regulated.

In addition, some independent parts and components companies are unable to supply domestic automakers, and have been supplying to the automotive aftermarket in Europe and the United States. “The opening of the auto parts channel has brought the local dawn to the independent parts suppliers that supply the foreign aftermarket.” Yao Mingcheng, chairman of Jiangsu Haoyue Auto Lock Co., Ltd. said. “The real benefit of the accessories channel is the consumer,” said Dong Zhongyin, general manager of Tianjin Kangzhong Auto Parts Sales Co., Ltd., “If the market is regulated, the fakes will be eliminated, and the future development of the automobile chain brand will be very favorable."

Enterprises step up layout

As we all know, Bosch is the world's largest auto parts supplier and the largest aftermarket supplier. On August 13, the reporter called Bosch China to learn about some plans and plans of Bosch in the Chinese automotive aftermarket. Bosch responded that Bosch is adjusting its after-sales business and is unable to accept an interview. It is understood that the original Bosch after-sales and maintenance business is two systems, but is currently undergoing adjustment. Not long ago, the official website of Bosch Trading (Shanghai) Co., Ltd. announced that Mao Limin began to serve as the president of the Greater China region of the Bosch Automotive Aftermarket. In recent years, Bosch has been active in the Chinese automotive aftermarket, such as opening flagship stores independently and cooperating with e-commerce. In addition, the reporter also called Delphi China, the other rumors refused to interview. However, they are very concerned about the release of the auto parts channel. Although it is very calm on the surface, it is actually surging. Whether it is the opening of the accessories channel, the price of parts and components, or the further regulation of the Chinese auto parts market, foreign-funded parts and components have a positive response strategy.

The reporter also interviewed joint venture parts companies and independent parts companies. Changchun FAW Fushun Group is an auto parts group separated from FAW. It owns a number of joint venture parts companies and also has independent parts companies. Wang Zhiren said that FAW Fuyu mainly supplies OEMs and recently discussed the development of the auto repair market, but the investment in the aftermarket will be cautious.

The situation of private parts and components enterprises is more complicated. Some enterprises only provide complete vehicles, some of them are involved in the whole vehicle and the aftermarket, and some are only used in the foreign automobile aftermarket. Dong Zhongyin has been a car accessories chain for many years. He knows a lot about spare parts suppliers. He told reporters: "In the aftermarket, self-owned brand parts are not as good as foreign brands, but now there are many independent enterprises entering the post-market, such as Henan West. Gap pumps, forest door locks, etc., are all in the vehicle and after-sales market."

This is a "double-edged sword"

Some parts and components enterprises in China have failed to supply the OEMs, but they are able to produce the same pieces. If the auto parts channel is released, these companies have the opportunity to enter the auto repair market. However, Han Jing believes that although the auto parts market is liberalized, the company itself must have the ability to participate. These parts and components enterprises must do a good job in product quality certification, can not be released, and the quality of their own products can not keep up, this is no good.

Similarly, Dong Zhongyin also believes that the liberalization of auto parts channels is a double-edged sword. In the past, auto parts distribution channels were all monopolized by 4S stores. Now, the channels are liberalized. If they are well controlled, they can eliminate counterfeit and shoddy products, which is very beneficial to the post-market industry, enterprises and consumers. However, if the channel is not well controlled, the market will be full of counterfeit original parts, consumers will certainly be more exclusive, which is not conducive to the development of independent parts and components enterprises.

Therefore, industry experts believe that the liberalization of auto parts channels is both an opportunity and a challenge for some parts and components enterprises.

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