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What are the difficulties in the development of auto parts

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In this article, Dongsui Auto Parts will explain "What are the difficulties in the development of Auto Parts", hoping to be able to help you.



Commercial vehicle parts enterprise is a high degree of industry segmentation industry, mostly emerging individual enterprises.For these small and medium-sized enterprises, the initial investment is under great pressure, and the profit after production is not high, so it is relatively difficult for them to increase the investment in research and development.And in a certain period of time, the price of auto parts raw materials continues to rise, enterprises need to pay a large part of the capital in terms of raw materials.



Single marketing is due to the commercial vehicle parts enterprises limited by the regional segmentation, which determines that it can only through the point-to-point model to maintain customer relations.The problem of capital also determines that it is difficult for the spare parts enterprises to invest a lot in technology research and development.The repeated construction nationwide makes the spare parts enterprises in the mire of price competition, which leads to serious waste of capital.A whole pie is fragmented, making it hard to scale up production, which makes them unprofitable and hard to invest heavily in follow-up research and development.



But although the commercial vehicle parts enterprises are facing many problems, but there are still most of the enterprises can survive, the key is the demand pull of the vehicle factory.After all, enterprises produce spare parts with less technology. In terms of labor cost and manufacturing cost, they require less liquid assets.



The problem of the path choice of the oems is also an important reason for the difficulties faced by the current parts enterprises.Most of the domestic commercial vehicle enterprises make whatever type of products they want, which is not conducive to product segmentation, which is not conducive to the subdivision of auto parts companies, nor is it conducive to the subdivision of auto parts companies, nor is it conducive to the subdivision of auto parts companies.Most enterprises only value the current production, and do not pay attention to the protection of intellectual property rights.Some parts of commercial vehicles even if there is technology, products, there is no patent, they do not even know what is patent protection.



What are the difficulties in the development of auto parts



Of course, the low - end technology and profit of commercial vehicle parts enterprises are also related to the characteristics of commercial vehicles.Commercial vehicles are different from passenger vehicles, commercial vehicles is an investment tool, customers in the purchase of the focus is its cost performance.As long as it is sturdy and durable, the cost of the purchase can eventually be effectively offset by the value created in its use.Therefore, commercial vehicles have fewer requirements for the refinement of spare parts configuration and less technical requirements.But another reality is that the refined requirements of commercial vehicles are gradually emerging.Some foreign commercial vehicle giants, in the configuration has begun to refine the requirements.In a certain period of time, many large foreign commercial vehicle enterprises have entered the domestic market in large quantities, which brings great challenges to domestic commercial vehicle enterprises.In a certain period of time, the components enterprises should do is to optimize the structure, enhance the technical competitiveness, strengthen the market channel development ability.



Due to the lack of necessary follow-up funds to expand production capacity and sufficient funds to support research and development, most of the spare parts enterprises are still limited to the point-to-point marketing mode, and it is difficult to get out of the regional market, let alone become a well-known spare parts enterprise.Difficult commercial vehicle parts enterprises are still struggling in the era of small profits.In a certain period of time, auto parts enterprises are caught in two vicious circles that are difficult to get rid of. One is the one-to-one marketing of parts enterprises caused by local protectionism, which leads to insufficient market development ability and difficulty in forming scale effect.Companies that are addicted to low-price competition and do not pay attention to intellectual property protection, in turn, increase local protectionism.The second is that low technology leads to low profits, which in turn leads to unsustainable r&d funding, which in turn leads to low technology.



As the foundation of automobile industry, auto parts are the necessary factors to support the sustainable and healthy development of automobile industry.Especially at present, the auto industry is developing vigorously and innovatively, which needs a strong component system.Need spare parts for vehicle independent brands and technology innovation base, parts of independent innovation and produces strong impetus to the development of vehicle industry, they are mutual influence, interaction, there is no vehicle independent brands, strong parts system research and development innovation ability is difficult to spurt, without strong parts system support, independent brands continue to do your will.

From January to December 2005, China's total industrial output of all auto parts and accessories manufacturers reached 383,800,952 thousand yuan, an increase of 18.67% over the same period last year.Accumulated product sales revenue reached RMB 375,265,815, an increase of 20.21% over the same period last year.The accumulated profit was 21,462,002 thousand yuan, 9.09% lower than the same period of last year

This is the circular dilemma faced by Chinese commercial car parts enterprises.



The above is the complete content of "What are the difficulties in the development of auto parts" introduced by you. Thank you for your reading. If you have any questions, please contact us directly.



Established in 2008, Guangzhou Dongsui Auto Accessories & Spare Parts Co.,Ltd is a professional manufacture and exporter that is concerned with design, develop and produce of auto exterior decoration productions mainly for Truck,SUVs,MPVS,Jeeps and Pickup. Located in Baiyun District, Guangzhou, with convenient transportation access.



Specialized in front bumper, rear skid bar, side bar, running board, roll bar, roof rack etc with more than ten years experience .All of our products comply with international quality standards and are greatly appreciated in a variety of different markets,our good customer service enable us to to guarantee total customer satisfaction and enjoy a good reputation through out the world.



As a result, our high quality products and outstanding customer service have gained a global sales network reaching North American,Middle East, South American, Europe, Africa, Asia and so on.



We sincerely welcome customers from all over the world to join us and establish long-term partnership with us. We strongly believe that we can create brighter future for our business together.

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