Optimistic about the supporting industries, Taiwan-owned parts and components seeking the mainland brand

On July 31, Gu Xianghua, who had just returned to Beijing from Taiwan, was a bit busy. As the deputy secretary general of the China Association of Automobile Manufacturers, Gu Xianghua was invited by the Taiwan Foreign Trade Development Association to conduct a seminar with his peers in the automotive industry in Taiwan. Direct communication.

Since the beginning of this year, the economic and trade exchanges between the two sides have gradually increased, and the year-on-year decline in the new car market in Taiwan has become the “pain in the heart” of the automotive industry in Taiwan. At present, the number of new vehicles traded in Taiwan is only about 300,000 vehicles per year, which is equivalent to only 3% of the annual sales volume of new cars in the mainland. Taiwan auto parts companies have also been greatly affected. They are all eager to find new ways out.

“The complementarity between the auto industries of the two sides of the Taiwan Strait is still relatively strong, especially since Taiwan has certain advantages in automotive electronics, precision molds and other aspects.” Gu Xianghua said, “The transfer of the automobile industry in the Taiwan region is increasing. According to my understanding, they are very Pay attention to relevant investment policies in the Mainland."

Cross-strait industrial division of labor

According to briefings, the report was held in the Taiwan area in four games. The number of participants in each meeting reached several hundred, and the response was enthusiastic.

“China has become the world’s second-largest automobile producer and will become the world’s largest auto consumption market.” Gu Xianghua said that compared to the fact that the demand for cars in Taiwan has become saturated, it is far from adapting to the ever-expanding scale of production. Capacity requirements, the industry's profit margins have become smaller and smaller.

According to statistics, currently there are more than 200 manufacturers in Taiwan's auto parts industry investing in the mainland, mainly distributed in Fujian, Guangdong, Guangxi and Jiangsu, accounting for 82%. Taiwan's well-known auto parts companies such as Dongyang, Liuhe, Dayi, Jiangshen, and Heda have invested and set up factories in the mainland, and have gradually become the major manufacturers of domestic auto parts.

Wang Qing said that the transformation, upgrading, and integration of the mainland automobile industry are inevitable. The automotive industry in mainland China and Taiwan can fully utilize this opportunity for cooperation and development. In the joint development of vehicles, the mainland and Taiwan can give full play to each other's strengths and establish a complete industrial division of labor.

Wang Qing also believes that Taiwan has a strong advantage in automotive electronics and precision molds. Although the mainland has a large market capacity, most of the market share is in the hands of multinational companies.

Taiwan’s auto industry mainly adopts industrial policies that are compatible with competition and support. With the upstream component system being driven by vehicle production, Taiwan’s auto parts companies have formed a small number of diverse and flexible manufacturing specialization modes of division of labor. Has been internationally competitive. However, due to the limited scale of the auto market in Taiwan, Taiwan’s auto parts are mostly sold in North America, Europe and the mainland. The main export products are sheet metal parts, rims, bodywork, engine and brake parts, and collision parts. The automotive aftermarket is the mainstay and holds an important share in the global after-sales service market.

In addition, thanks to the well-developed electronic information industry in Taiwan, and the strong support of Taiwan's regional government, automotive electronics products are also the strengths of Taiwanese companies.

In an interview with this newspaper, the relevant person in charge of the International Department of the China Council for the Promotion of International Trade indicated that the current automotive electronics industry in the mainland has not yet reached scale, and the potential for cooperation with Taiwan is huge. At present, many Taiwanese IT companies have gradually invested in the research and development of automotive electronics. Taiwan's important information electronics manufacturers such as Hon Hai, Quanta, Asus, Compal, and LiteOn have begun to focus on the global, especially mainland automotive market.

Optimistic about supporting self-owned brands

Gu Xianghua said that when communicating with Taiwan’s autos and parts suppliers, the other party is more concerned about whether the mainland’s Taiwanese-funded enterprises can implement more preferential policies and how to enter the existing complete vehicle factory supporting system.

Most of the Taiwanese-funded enterprises that came to the mainland to build factories in the early days have cooperated with local companies or followed transnational companies to enter the mainland market. For example, Taiwan Liuhe Machinery Group mainly serves as a partner of Nissan Motor Co., Ltd. Technology and philosophy.

Liu Xingwen, general manager of Taiwan's Liuhe Machinery Industry (Hainan) Co., Ltd., said that many multinational companies had their own vertical supporting systems, such as Japanese and South Korean companies. Other parts and components companies have difficulty entering their procurement scope.

However, with the rapid rise of self-owned brand cars in the Mainland, the situation of these enterprises has changed. Liuhe Machinery currently accounts for 40% of sales of imported brand cars in sales of its own companies, while domestic self-owned brands account for 60%.

“Liuhe Machinery Hainan Company is a new plant built specifically for the service of hippocampus vehicles.” Liu Xingwen said, “We are in the second phase industrial park of Haima Motors. Haima Automobile has become the pillar industry in Hainan. We are more optimistic about our own brands. Block market."

In 2007, a total of 1,242,200 cars were sold in mainland China's own-brand cars, accounting for 26% of the total sales of cars. Compared with 2006, the sales volume of self-owned brand cars has increased by 249,400 units, and the market share has increased by 0.23 percentage points.

With the scale of China's automobile production and sales leap to 10 million, the market share of independent brands is also gradually increasing, because most of the independent brand companies are not capable of establishing an internal vertical supporting system, so this has also increased the number of Taiwan auto parts companies. More opportunities.

According to relevant persons from the China Council for the Promotion of International Trade, Taiwan’s automotive parts and components companies are eager to expand into the mainland market, but they are mainly worried that there is no way for local automakers to support them. Therefore, they also adopt a method of cooperation with local companies to enter the vehicle matching system. This is also a comparison. Good solution.

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