In the second half of China's auto parts market will be more busy

In the first half, China's auto market growth continued to slow, market space to shrink, the car the change of market environment intensified competition, the market of smoke, multinational, joint venture, autonomous launching an race car companies. In order to gain a foothold in the war, the independent brand car companies have pulled up, high-end banner, although the independent brands to continue to increase the market share in the first half of the race, but to the high degree of dependence on its own brand of local parts enterprise crisis. Both high-end independent car companies chose to alongside more "famous brand" parts highlighted high-end route, led directly to the local parts enterprise market space tends to shrink.

Under such situation, domestic components company also launched a counter attack path, through the strategic adjustment and investment, open a transformation, especially in mergers and acquisitions, integration of the wind is the strongest.

In the second half, spare parts, as the annexation and reorganization in domestic enterprises and foreign mergers and acquisitions, integrating the pace will be accelerated.

Transnational merger and acquisition speed. According to statistics, in the first half of this year, there are three foreign m&a events. Recently was on June 30, China aviation industry group buying American John DE car, at a cost of $800 million, as China's acquisition of the U.S. auto industry related assets of the largest deals. Before that, on March 29, weichai power for euro 187 million Germany kay proud again to purchase the 4.95% stake, weichai power after the completion of indirect stake of 38.25%; On March 23, China chemical rubber co., LTD., to as high as 7 billion euros for pirelli, achievement of Chinese enterprises in the biggest investment in Italy.

Weak parts of Rome was not built in a day, counter attack and Rome was not built in a day, but the situation of domestic parts enterprises is very serious, even if the whole car sales market gradually incline to low growth, but still kept increasing multinational operation of parts layout in the domestic market, further squeezing the independent components the living space of the enterprise, therefore, mergers and acquisitions may be independent of enterprise survival and into the high-end market one of the most rapid way, the author thought that, don't speak what absolutely independent innovation or not, at present, to survive and get to live any more capital is king.

So, from the first half of each enterprise m&a activity can be seen that the initiative of m&a. Then, the strong breeze is likely to continue to blow. Overseas m&a resource integration problem, however, will be a big problem, also hope that all the enterprises pay attention to the potential risks and improve management ability and real control the high quality resources.

Accelerate domestic resources integration. On June 10, kunming within the cloud power co., LTD., according to the announcement about establishment of wuxi is done with relevant partners from automotive power technology co., LTD. (" investment agreement "signed, to jointly create new energy automotive powertrain industry technology development platform, form the industrial chain drive efficiency.

Not only within the cloud dynamics, next, the merger and integration effect of domestic enterprises will also continue to expand, parts and components market in China, foreign enterprise number accounts for 20% of the number of scale enterprise, the market share accounted for more than 70%, Chinese parts enterprises accounted for only 30% of market share, and presents the downward trend, 90% of the focus in the field of low-end products. But in the future, as the market itself to the transformation of intelligent, environmental protection, domestic enterprises only strengthen the integration of the resources, by adjusting the product structure, extends the industrial chain and other ways to get new living space.

The rapid growth of new energy automobile market promoted electronic pump market demand, this electronic pump products to west pump shares opened door market. Listed four years later, the west pump equity refinancing project smooth implementation, for the first time for the turbocharger shell, auto water pump, electric pump project. Not only can continue to expand the traditional auto water pump capacity, also can improve the company electronic pump capacity.

In addition to these overweight components for new energy enterprises, there are some parts enterprises to bet on vehicle manufacturing, Mr Lu will build the car. Recently, wanxiang group, set up a joint venture with saic, new energy bus enterprises, and set up new energy bus production base in hangzhou, will work together to develop domestic and overseas new energy automobile market.

No early, without the new energy vehicle market hot will not only bring opportunities to the production of the vehicle, to give the same parts enterprise to bring the counter attack opportunities, may even forge "byd" in the field of spare parts.

According to the new energy released in the first half of the automobile enterprise strategic planning, in the second half of the new energy production will also to the next level, almost all automobile enterprise presented new energy strategy planning, even in silence for a long time in the field of new energy changan and the Great Wall began to vigorously launched their own new energy planning, and byd, lifan, and other enterprises, the means of rather bet on sweeping into new energy field, so to form a complete set of automobile enterprise demand, the second half of parts enterprises in the field of new energy investment will also increase, and the competition in this field at present and the foreign domestic enterprises is not absolute disadvantage.

Price or will be launched, local enterprises into intelligent battle for market

Vehicle market price war has been lit, the next is likely to burn up parts enterprises. Automobile enterprise by means of price competition will inevitably to lower component cost, so for spare parts enterprises, face possible risk reduction. In addition, the auto parts industry belongs to the traditional competitive industry of small profit, enterprise pursuit of economies of scale. If the big drop in production situation, enterprises will increase the pressure. Now it's like the whole car sales market, the sales increasing difficulty, under the situation of profit decline, you probably started a price war.

In addition, it is the embattled situation, companies will seek new opportunities. Intelligent is the breakthrough point.

At present, the car is in auxiliary intelligent, parts of intelligent, completely intelligent transformation, such as Bosch, continental and foreign parts and components industry is already taking automated driving auxiliary driving system (ADAS) technical commanding heights, our auto parts enterprises have been lost on the "starting line", then, can't miss the chance.

So, along with the transformation of parts enterprises adjust, is likely to gradually with foreign enterprises in the field of intelligent form against the situation, of course, it's just that we're looking forward to.