“The localization rate of 40% of parts and components will definitely be cancelled. Originally, localization rates of less than 40% did not allow production. Now, it is changing the characteristics of an entire vehicle. If it constitutes the characteristics of the vehicle, it can pay taxes as usual. All next year The cancellation of the quota will bring tremendous pressure to many parts and components manufacturers, said Zhang Xiaoyu, vice chairman of the China Machinery Industry Federation.
“There is basically no country that has a localization rate in terms of policy. The state wants to protect the automobile industry, but it must completely push the market to the enterprise. If we also implement a 40% localization rate for parts and components, then after 5 years we will The gap will be even greater," said Chen Guangzu, a senior expert in the Chinese automotive industry.
The component parts of the “Auto Industry Industrial Policy†promulgated in 1994 focused on the localization of car parts. Without the localization of components of that era, there would be no basis for the Chinese auto parts industry today. In the past 10 years, the localization level of Chinese cars has been greatly improved. Today, there is no umbrella for the localization rate of parts and components. Most Chinese parts and components companies feel more deeply that they are being pushed into the global procurement arena. Is the opportunity greater than the challenge or is the challenge greater than the opportunity?
Global procurement is a double-edged sword
According to Changzhi Hydraulic Co., Ltd., the cancellation of the localization rate certainly has an impact on our business, but we can face challenges.
The relevant personage of Chengdu Huachuan Denso Co., Ltd. believes that there is nothing to cancel the localization rate because our competitiveness is no worse than that of foreign countries. He said that now, vehicle manufacturers in China to purchase the first choice of the original supplier, followed by joint ventures, once again the introduction of foreign technology in Chinese-funded enterprises. Our main competitor is the original supplier of the auto manufacturer. Although pressure is great, global procurement is a guide for us.
Of course, there are also some Chinese-owned parts and components companies that find it difficult to purchase under global sourcing. Tian Yushi, General Manager of FAW-Foot Automotive Parts Co., Ltd., expressed emotion: Parts import tariffs fell to 15%, and a large number of foreign parts began to flow into the domestic market. Imports in 2003 amounted to more than 6 billion euros, equivalent to 30% of the annual sales of the domestic parts and components industry. At present, the so-called new models launched in China are not developed in China. Even some new models that claim to be in sync with the world have already built components and accessories bases abroad. If a new model is launched in the domestic market, domestic parts and components companies all want to supply products that must be certified by foreign component manufacturers. Those purchase orders of foreign-funded enterprises or joint ventures that have a small amount of purchases can be abandoned, and the purchase volume is large and never give up.
Keep pace with the times and strive for opportunities
Localization is the core of the auto industry in all countries to become independent. In particular, in countries where the auto industry is relatively backward, it is more important to realize localization.
Japan is one of the countries with the earliest implementation of localization policies. From the late 1950s to the mid-1960s, the Japanese auto parts industry has laid a solid foundation. South Korea emulated the localization experience of the Japanese auto industry. In 1962, it formulated the “National Five-year Plan for the Development of the Automotive Industry†and the “Proposal for the Automotive Industryâ€. In 1980, it proposed the “rationalization measures for the auto industry.†The current production of parts and components is basically Based on domestic. In 1979, the "Development Plan for the Automotive Industry" was formulated by the "Ministry of Economic Affairs" in Taiwan, the "Auto Industry Development Plan" was established in 1985, and the "Executive Essentials for the Development Plan of the Auto Industry" was published by the "Executive Yuan" in 1986. The localization rate of parts and components has reached more than 70%.
The international division of labor puts forward new concepts for localization work. The effect of localization on localization work, that is, the level of self-control is not the most important, the main thing is whether the vehicle can enter the international market. If self-regulation is set too high to affect exports, then the self-control rate should be lowered. Spain adopted protective measures in the late 1960s, stipulating that foreign manufacturers set up factories in Spain, with a local self-control rate of not less than 90%, and restricting imports through high tariffs. However, the poor quality of domestic production spare parts has made Spain's automobile internationally competitive. decline.
"China's spare parts enterprises must adapt to globalization and information, change their ideological understanding, and keep up with the situation before they can develop." Chen Guangzu said.
“If we cannot achieve the same price and same quality as foreign countries, people will not buy you. Global procurement is actually a double-edged sword. Foreign large companies can use it, and domestic companies can also use it. Must reach the international level, otherwise, in this market is not mixed, even if a screw must reach the international level, equipment is the first flow, management is the first flow, quality is the first flow, only competitive, Otherwise, people will not buy you." Zhang Xiaoyu said.
Qian Pingfan, deputy director of the Industry Economic Research Office of the Development Research Center of the State Council, once proposed that the localization rate should be gradually eliminated: The localization rate requirement is largely to protect the backwardness; without such protection, it can stimulate domestic parts and components companies to catch up . Xu Bingjin, deputy chairman of the China WTO Research Association, said that at the beginning of the 1990s, the then China National Automobile Corporation proposed to support 100 “small giants†in the production of parts and components, and a “small giant†would invest 100 million yuan. At that time, the State Development Planning Commission was controversial because it did not have so much money to invest in, and later thought about a lot of methods and still failed to get it done. Relying on state support is not the fundamental solution to the problem.