With the rapid expansion of the domestic auto market, the distance between domestic auto parts giants and international auto parts giants is also shrinking.

 

The list of top 100 international auto parts enterprises and top 100 domestic auto parts enterprises in 2018 (hereinafter referred to as "top 100 auto parts enterprises") released recently shows that Weichai group, the largest domestic parts enterprise, had a turnover of 258.187 billion yuan in 2017, ranking fifth in the international parts ranking.

 

According to the international parts ranking list, German parts giant Bosch is far ahead, with a turnover of 608.579 billion yuan in 2017. The revenue scale of Continental, Nippon Denso and ZF ranked second to fourth was 343.3 billion yuan, 315 billion yuan and 284 billion yuan respectively. From the perspective of revenue scale, the gap between Weichai group and the first Bosch is indeed large, and the gap with the following international parts giants is not particularly large. It seems that efforts can still break into the top three of the industry.

 

In addition to Weichai group, there is also a domestic parts enterprise among the forefront of international parts enterprises. Different from its complete vehicle business such as Shaanxi heavy truck, this enterprise is a more pure auto parts enterprise. It is Huayu automobile, a parts enterprise of SAIC Group. With a turnover of 140.4 billion yuan, it ranks 11th in the international list. Similarly, the gap between Huayu automobile and French Valeo and Hyundai Mobis is not large, and there is room for further improvement in the industry status.

 

In the list of the top 100 international spare parts companies in 2018, there are 17 enterprises with 100 billion yuan, and the lowest annual revenue is 13.134 billion yuan. Parts enterprises from Germany, Japan, the United States and France account for the majority in quantity and rank higher, firmly occupying the leading array of global parts enterprises.

 

There are 18 Chinese auto parts enterprises selected into the 2018 top 100 international auto parts list, one more than in 2017. Meanwhile, compared with the list in 2017, the international rankings of Weichai group and Huayu automobile increased by 5 and 1 respectively. In addition, there are 16 enterprises ranking 37th to 98th in the world.

 

In addition to further improving its "Jianghu status" in the world, the performance of the top 100 domestic parts and components also continued to grow. Fang yinliang, global partner of Roland Berger management consulting company, introduced that in 2017, the annual revenue of China's top 100 auto parts enterprises totaled more than 1.15 trillion yuan, an increase of 36.32% over 2016. The selected minimum revenue increased from 1.4 billion yuan in 2016 to 1.888 billion yuan. The scale effect of the auto parts industry has become increasingly prominent.

 

Among the 87 enterprises that have been shortlisted in the top 100 domestic parts list for two consecutive years, about 86% have achieved annual revenue growth; Among them, there are 11 enterprises with a revenue increase of more than 50%, mainly providing parts and components of transmission and diesel engine for commercial vehicles; The revenue of 34 enterprises increased by more than 20%. In addition to the suppliers of transmission, they are mainly concentrated in the fields of electrified power system, on-board information system, body electronics and so on.

 

According to Fang yinliang's analysis, domestic parts enterprises with good development momentum have three common characteristics: first, deepen their main business and consolidate the original market and customers; Second, closely follow the market trend and lay out new blue oceans such as electrification, vehicle control, interconnection and intelligent driving in advance; Third, the layout of globalization, through overseas acquisitions, exports and other ways to increase new business sources.

 

Even if the overall auto market grows negatively this year, China will still be the largest auto consumer and will rank first in the world for 10 consecutive years. From the above list of top 100 international and domestic parts, with the expansion of the scale of the domestic auto market, the volume of domestic auto parts enterprises has also increased, gradually emerging in the international parts industry.

 

However, in terms of scale, there is still a significant gap at home and abroad. Schaeffler, Germany, ranked 15th in the top 100 international parts list, has a revenue of 109.396 billion yuan. Among the top 15 domestic parts list, in addition to Weichai group and Huayu automobile with a revenue scale of more than 100 billion, Beijing Hainachuan ranked third with a revenue scale of 51.2 billion yuan, and China Aviation automotive system Holding Co., Ltd. ranked fourth with a revenue scale of 37.296 billion yuan. The revenue scale of more than 10 other enterprises is between 15-26 billion yuan.

 

Moreover, in addition to the prosperity of market scale, "large but not strong" has always been the "heart disease" of China's automobile industry. Auto parts, which have always been regarded as the foundation of the auto industry, also have such problems.

 

"We are really pleased to see the revenue and scale, but the revenue scale is only one of the measurement indicators. If measured by profitability, R & D investment and other indicators, I don't think the situation will be so good." Yan jianlai, Deputy Secretary General of China Society of automotive engineering, said that from the number of Chinese enterprises entering the "top 100" list and their main business income, we can see that the industrial scale and internationalization of China's auto parts industry are increasing, but we should also realize that China's auto parts industry is not strong enough and there is still a certain gap with the international advanced level. The profitability and R & D investment of parts enterprises are directly related to whether China's automobile industry can change from big to strong.

 

As the growth rate of China's automobile market, the "locomotive" of the global automobile market, has slowed significantly in the past two years, the wave of rapid growth of the parts industry driven by the highly prosperous whole vehicle market has gradually faded.

 

Roland Berger predicts that in the short term, global auto parts suppliers will achieve sustained but slow revenue growth, the growth rate will remain at about 3%, and the average profit margin of the industry will stabilize at 7%. Affected by this, local parts enterprises will face the dilemma of intensified competition and low added value of existing products.