The Analysis And Development Strategy Of Automobile Parts Manufactories In China

Depending on the forecast of State Department development & research center that the total demand of car will be 57,360,000 till the year of 2010 ,and till the year of 2020 will be 137,650,000 in China .In the meantime the profit of car industry is more than 30% or 35% . China car industry starts to increase their manufacture capability due to the high demand and the tremendous profit. The current car makers manufacture capability will be 4,000,000 in the year of 2008 ,and the new investments start their activity in car industry ,especially the private company in Zhejing province . In 2004 year the government had released the new document <> that "encourage the current car makers increase their volume and category ,combine or co-operate with other company to enlarge their manufacture capability ".As the background of new policy that the automobile industry enter a new stage from the drastic compete into monopolization phase. This development trend give the automobile parts manufactory new opportunity and challenges. Due to industry manufactory capability enlarge and the government issue << The automobile parts import management of indicate of completely vehicle symbol >>, This policy will increase the import duties which import from overseas ,then the local automobile parts manufactory will getting into a very fast development phase .All the automobile suppliers will be collectivize , specialization, modularization. Compare with automobile parts supplier development situation of America , Europe and Japan ,we can find that America car maker incline to the more and more key components design and manufactured by their professional supplier; Europe car volume is still decreasing ,the automobile parts suppliers are recombined then can against the demand pressure which from their customers ; The car makers in Japan use the strategic alliance or outsourcing ,to strengthen the cooperation relationship between customer and supplier ,the result is very well .at the same time we can see that the automobile parts manufactories are independed from the car makers. The Chinese automobile parts manufactory still have their weakness , but to developing the industry can become the most affect industry for the world .China will becoming the production-base of global car components manufacture .The current situation of China is The manufactory capability is limited ,have no develop experience and strong local-protection policy ,have no enough investment , the local supplier have no above mentioned abilities also to cooperation with the car makers ,and the limited lead time of new project can't get the requirement from customers . There are big development opptunities and potential marketing for local automobile parts manufactory . there are 3 main tasks development "costs""financing""the technology know-how and brand",doing the joint-venture ,self-development ,improvement of management . Doing some research at the international market ,advantage of labor costs and using the local resource ,against the pressure of market&costs from international market , that will be makes the local automobile manufactory can deliver their products to all over the world ,and it will become basic manufactory resource in the globe indeed .