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The Industrial Policy Department of the Ministry of Industry and Information Technology recently released the 254th batch of "Vehicle Production Enterprises and Products Announcements". Wanxiang Group's subsidiary Wanxiang Electric Vehicles Co., Ltd. will obtain special vehicle production qualifications. Coincidentally, Weichai Power will formally enter the field of passenger cars. The first model will be selected as a gasoline-powered urban SUV, or it will be launched in the market next year. The actions of the leading companies in the parts and components industry in the vehicle field are thought-provoking.
Why do parts suppliers want to enter the vehicle manufacturing industry? There are two main reasons for this. First, relative to the prestigious vehicle manufacturers, even the top-ranking component companies in their own fields, the prestige and the degree of concern between the two are not comparable. The vehicle manufacturing industry has become the demand of some parts and components companies. Second, the parts suppliers have seen huge profits from the vehicle manufacturing, so they have started to implement the entire vehicle project in an attempt to maximize their profits.
Both Wanxiang Group and Weichai Power are leaders in their respective fields in the domestic parts and components industry. Their dream of entering the vehicle manufacturing industry has begun to take action. In this regard, the industry's views are mixed. Some people think that companies like Wanxiang and Weichai Power, which make parts and components, have more core technologies than ordinary autonomous car companies. Participating in vehicle manufacturing in this capacity will bring a new Ideas. In fact, whether it is Weichai Power or Wanxiang Group, the most fundamental reason for investing heavily in the vehicle manufacturing industry is that it belongs to the entire industry, especially in the course of the corresponding business extension. The original business can be assisted as a core technology. These are all advantages and are the greatest confidence of the parts suppliers.
Some people are also concerned about the current competition situation in the passenger car market and the development status of self-owned brand car companies. At present, China's auto parts production is still a shortcoming in the development of the industry, and parts and components companies have not consolidated the conditions of their technical strength basis. The urgency to transform the vehicle manufacturing is not favored. As a capital and technology-intensive industry, the automotive industry requires highly imaginative requirements in production, logistics, marketing, and aftermarket. It requires companies to have a series of links such as production lines, research and development products, brand building, and establishment of a marketing network. Long-term, sustained high investment capability, once the above-mentioned certain link is not well-handed, it will affect the development of the entire enterprise. As a result, component manufacturers have entered the entire vehicle manufacturing industry. Even if they have their own core technologies and products, starting from scratch does mean a huge risk.
In addition, the Chinese auto market is now far less favourable than in previous years. Not only has indigenous automakers come up with cost-effective products to fight at low-end products, but also joint venture vehicles have expanded their product range to carry out product lines in various aspects. Exploration, these all give new players more pressure and challenges. Therefore, the auto parts companies will not be clear about the prospects of transforming their vehicles at this time. It is still difficult to define the theory, and the actual effect geometry can only be left to the test of time.
Looking around the world auto parts industry, there are few examples of component manufacturers entering the entire vehicle industry. Several multinational auto parts companies that are well-known in the industry have provided components and core technologies to a large number of vehicle manufacturers globally. After several decades, they are still focusing on spare parts and earning the upper reaches of the entire automobile chain. Profits do not have to share the risk of any vehicle manufacturing. The future development of the auto parts industry can be foreseen, and the transformation of finished vehicles will not become a trend. At present, China's spare parts industry is in a critical stage of urgent need for development. For China's auto parts manufacturers, practical and focused spare parts are the foundation for the future stable development of the industry. In particular, as a leading company in the parts and components industry, it should focus on research technology, reduce the gap between domestic and foreign key components, and lead the overall growth of China's auto parts industry.
3) manual operation is simple, convenient, safe and reliable.
It is difficult for component companies to enter the manufacturing industry