At the forum, the vice president of Nielsen's global automotive industry research gave a keynote speech. Until the early hours of yesterday morning at three or four o'clock, the Nanyuan Global Hotel was still welcoming guests from Beijing, Shanghai, and other places. The "2011 Private Enterprises Dialogue with the World's Top 500" event hosted by the Ministry of Commerce was held in Ningbo yesterday. The theme of this dialogue activity was "Dialogue with Automotive Leaders, Collaborative Cultivation for Mutual Benefit," where multinational companies such as Volkswagen, Hyundai, and Chrysler, leading enterprises in the automotive industry, and over a hundred Chinese private and medium-sized enterprises engaged in direct communication and exchange, jointly discussing the current state and future trends of the global automotive industry under new circumstances.
The Standing Committee Member of the Provincial Party Committee and Secretary of the Ningbo Municipal Party Committee, Wang Hui Zhong, believed that Ningbo has already become an important base for the automobile and auto parts industries. This theme is an excellent starting point for Ningbo to engage in dialogue with the world. Some local auto parts enterprises attending the conference also remarked that only through independent research and development can long-term development be achieved.
From imitation to independent research and development—it is precisely through R&D that a door has been opened. Yesterday morning, the meeting schedule was packed. During a 20-minute tea break, Zhao Zhaofeng, President of Jianxin Zhao Group, shared his thoughts on the experience of making auto parts with the reporter.
Jianxin Zhao Group mainly produces three types of automotive components: whole vehicle sealing strips, rubber shock absorbers, and chassis components. Zhao Zhaofeng said that although they are not the largest in domestic peers, the products they produce have the highest difficulty coefficient.
To tell the story, more than 10 years ago, well-known international car manufacturers hoped that their partner companies would be capable ones, mostly joint ventures.
However, when Jianxin Zhao sought joint venture partners, the other party made harsh demands regarding price and other cooperation terms, putting the company in a passive position. This also made the company realize the importance of its own strength, and increasing R&D was a necessary path.
In 2001, Jianxin Zhao had an annual sales revenue of 90 million yuan but spent 12 million yuan to buy back a testing device from the United States, which was then the only one in China, and established a design and R&D center, specializing in automotive tire anti-slip chains.
There are tens of thousands of automotive parts, and Zhao Zhaofeng told the story of developing the chassis. In 2007, the company started producing car chassis from scratch, mainly serving domestic car manufacturers; in 2009, the service target upgraded to Volkswagen cars, and the company replicated the chassis provided by Volkswagen according to requirements based on experience; within less than a year later, the company's R&D capabilities improved again, allowing it to develop chassis synchronously with the main factory.
Developed countries' automotive industries started earlier, and the gap between Chinese enterprises and them was unimaginable before. "Previously, the gap between us and foreign competitors was like one being on the ground and the other in the sky. It is precisely through R&D that a door has been opened, enabling us to compete on the same stage." Zhao Zhaofeng said.
Auto parts enterprises hope to transform and find high-quality international partners at the venue. Yesterday, at the venue, someone asked the reporter to borrow the meeting agenda. Originally, the person was Mr. Zhang, who worked in trade for a Ninghai-based auto parts company and had been engaged in exporting auto parts for 15 years.
The product he made was a type of bearing steel ring, primarily targeting mid-to-high-end customers. Don't underestimate this ring; it's not easy to make a name for oneself. "Now, there aren't many companies in Ningbo or even domestically that can supply high-end bearing steel tubes." One of Mr. Zhang's customers is a German company, among the top ten global bearing manufacturers. Now, Mr. Zhang supplies thirty percent of his goods to this company, reflecting his strength.
This time, Mr. Zhang attended the conference with specific goals. He carefully checked the list of speakers and paid special attention to the foreign companies attending. He hopes for more opportunities to cooperate with foreign companies, from which he can learn a lot.
"Providing supporting services for bearing steel rings yields low profits. The company hopes to transform within the same industry, such as manufacturing steel rings for other car components." Mr. Zhang hopes to find quality cooperation partners through this platform.
Ningbo is currently developing an international automotive industry city and will soon manufacture Volkswagen-branded cars.
In the future, Ningbo will not only produce Geely cars but also Volkswagen-branded cars.
In the Ningbo Hangzhou Bay New Area, an international automotive industry city is being developed, with a planned area of 100,000 square kilometers. It aims to introduce over 100 internationally renowned automobile manufacturers and key component manufacturing enterprises, with planned investments exceeding 50 billion yuan and a production value exceeding 200 billion yuan, striving to become the most competitive automotive industrial base in China.
On August 16, the Shanghai Volkswagen Automobile project officially started construction, with an annual production capacity of 300,000 vehicles. Specifically, which brand of Volkswagen will the cars be? The reporter has heard multiple times that it might be the Skoda brand under Volkswagen, but no clear answer was obtained from Volkswagen yesterday.
Ningbo already has two major whole-vehicle manufacturing bases, Volkswagen and Geely, with an estimated whole-vehicle production capacity exceeding 400,000 units next year, and a future annual production capacity of 600,000 whole vehicles. Ningbo has more than 3,000 various types of automobile component manufacturing enterprises.
At the event, Wang Hui Zhong, Standing Committee Member of the Provincial Party Committee and Secretary of the Ningbo Municipal Party Committee, introduced that Ningbo has already become an important base for the automobile and auto parts industries. This industry is also a key industry that Ningbo aims to cultivate during the "Twelfth Five-Year Plan."
By the end of 2010, there were a total of 671 large-scale whole vehicle and parts enterprises in the city, with an industrial total output value of 48.96 billion yuan, achieving a total profit of 4.63 billion yuan. Among these, eight enterprises engaged in various whole vehicle production and manufacturing achieved an industrial total output value of 7.93 billion yuan, realizing a profit of 790 million yuan.
Yesterday, besides Volkswagen, Hyundai, Delphi, and other Fortune 500 companies and international automotive giants participating, well-known domestic enterprises such as Geely Group and Huaxiang Group also attended.
When talking about the gaps in the automotive parts industry between domestic and international markets, many domestic automotive parts enterprises expressed that domestic automotive parts enterprises lack strong independent research and development capabilities, with many still competing in the mid-to-low-end market segment, leading to increasingly smaller profit margins.
President Zhao Zhaofeng of Jianxin Zhao Group said that there are many domestic automotive parts manufacturing enterprises, but those capable of independent R&D are quite rare. Mid-to-low-end products have high market transparency and low profit points. Only through independent R&D can long-term development be achieved.
One of the top five global consulting firms, Nielsen, also sent representatives to attend the conference. Ian, Vice President of the company, stated that currently, international automotive giants also heavily rely on China's automotive parts supply chain. However, Chinese automotive parts enterprises must have an international perspective, not be satisfied with the status quo, continuously innovate and study new technologies, ensuring their products meet new market demands.
Wang Hui Zhong indicated that Ningbo's automotive parts industry is concentrated, has a complete range of categories, and solid technical expertise. In the future, international cooperation must be further strengthened. The goal for 2015 is to achieve an industrial total output value of 200 billion yuan for large-scale whole vehicles and parts enterprises, quadrupling within five years.
The conference conveyed the following message: Although China has numerous self-owned brand automobiles, very few truly master core technologies. With the enhancement of environmental awareness and rising oil prices, more and more consumers are willing to pay higher prices for electric vehicles. Future competition in the automotive industry will focus on green energy and exterior design. This event also made numerous enterprises acutely aware that only by mastering core technologies can they develop and grow stronger.
Ningbo Automotive Parts Base
Ningbo Hangzhou Bay New Area: Currently, well-known domestic and international whole vehicle manufacturers such as Shanghai Volkswagen and Geely Automobile have settled in the new area, planning an annual production of 1 million mid-to-high-end sedans. Renowned global automotive core parts manufacturers such as France’s Faurecia, Japan’s Yazaki, South Korea’s Mando, and the United States’ Visteon have invested in setting up production bases among more than 30 enterprises.
Fenghua Economic Development Zone: Companies such as Germany’s Koma hydraulic equipment and Eck Automotive shock absorption system have set up businesses here.
Panhu Management Committee Area: There are 16 enterprises producing automotive parts and components, producing turbocharger systems, MOS chain systems, emission systems, water pump clutches, etc., as automotive components.
Ninghai Economic Development Zone: An automotive parts industry park is established, divided into zones A and B. Zone A is the service area, mainly setting up testing centers, raw material procurement, product design and R&D, and other supporting service departments; Zone B is the production area, focusing on the development of key automotive parts, automotive electronics, automotive plastic parts, automotive hardware functional parts, and other products.
Developing energy-saving vehicles is the focus moving forward.
As of the end of November, the number of civilian vehicles owned domestically reached 104 million units. After deducting approximately 13 million low-speed trucks (agricultural vehicles), the number of civilian vehicles owned domestically is approximately 91 million units, with a per thousand population vehicle ownership rate of approximately 68 vehicles.
Currently, the global per thousand population vehicle ownership rate is 141 vehicles, while domestically, it is less than half of the average. Such a low vehicle ownership rate has already brought significant pressure on energy supply and the environment.
Zhang Guobao, Chairman of the Expert Advisory Committee of the National Energy Commission, stated that the increase in oil consumption due to the growth in vehicles in our country reaches 30 million tons annually. Energy pressure is constraining the sustainable development of the automotive industry, and it is necessary to seek alternative energy sources while accelerating the development of new energy vehicles.
Zhao Hang, Director of the China Automotive Technology Research Center, said that in recent years, the number of privately owned vehicles in the country has increased rapidly. As the number of vehicles owned increases sharply, energy, environmental, and traffic-related social issues related to vehicles are becoming increasingly prominent. It is necessary to mobilize all societal forces to seek solutions, accelerate the construction of a harmonious automotive society, and promote the continuous healthy development of the automotive industry.
Zhao Hang proposed that to build a harmonious automotive society, it is first necessary to establish a unified, open market management system, promoting the coordinated development of the automotive industry with the economy and society. When studying and introducing measures to relieve traffic pressure, economic means such as parking fees, congestion charges, and fuel taxes should be considered more often to regulate private vehicle travel.
Secondly, comprehensive measures must be taken to improve environmental protection levels. Strengthen the management of emissions from vehicles currently in use; accelerate the scrapping and updating of old vehicles, speed up the elimination of high-emission vehicles, improve the quality of vehicle fuel, cultivate a culture of green travel, and encourage citizens to choose public transportation.
Energy conservation must be highly valued. An energy conservation management system for automotive products should be established, and developing energy-saving vehicles should be the work focus of the automotive industry for the present and the foreseeable future. Use economic means such as fuel taxes to regulate the use of vehicles currently in operation, improve fuel consumption standards, and promote advancements in automotive energy conservation technology. Simultaneously, mobilize all aspects of society's strength to address traffic congestion issues from multiple angles such as urban planning, public transportation, and parking facility construction.
Professor Ouyang Minggao, Director of the Department of Automotive Engineering at Tsinghua University, believes that the energy and environmental problems brought about by automobiles in China will be extremely serious. Therefore, it is essential to vigorously develop new energy vehicles and optimize traditional energy vehicle power systems. Winning the battle for energy conservation and emissions reduction in the automotive field will allow China's automotive industry to continue rapid development over the next decade.
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