When the parable of The Wolf came to the past, the fairy tales of Pleasant Goat and Big Big Wolf became the new darling of children. No matter how fierce the big wolf in the story, Pleasant goats can always save their lives, and still "have the power to make people laugh." This kind of power is also owned by Chinese auto parts manufacturers.
Nearly a year ago, the global financial crisis was still like the wrath of people, diluting the joy of the Chinese car industry, which has been growing rapidly for several consecutive years. But now, even frequent anti-dumping investigations cannot extinguish the flames of the Chinese auto parts industry. As the decline in exports and the slowing down of the demand cloud, component makers saw new opportunities while launching new expansion plans.
“The financial crisis has indeed given Chinese companies an opportunity.†Before saying this, Wang Jinding, chairman of Shanghai Changhui Group (Huangshan Auto Electric Co., Ltd.), and reporters are happily discussing his next steps. In his plan, in addition to establishing a joint venture with the automaker and co-developing automotive electronics, he and his company will be freed from the constraints of simple manufacturers and build automotive aftermarket brands. “We have started small-scale practice. The main problem at the moment is to look for opportunities to learn new experiences from successful people.â€
Pushed forward for 10 years, his company is still a group of small mills with a few planer milling cars, more than 100 manual jingle operations, relying on simple automotive generator relays to obtain limited profits; push forward for another 10 years, it is still a Livelihood workshops for the production of small farming tools. “At that time, many things did not dare to think, and we could not think of such a good platform. Such a good opportunity. Compared to the impact of foreign parts manufacturers, the greatest hope of Chinese parts companies is better than yesterday. It will be better tomorrow than today. Now look back and we will do it and we will continue to do it."
Wang Jinding and his Changhui Group are like a miniature of many auto parts companies in China. At the beginning of the venture, they were good at discovering opportunities and were good at rising in opportunities. They started from a single simple product, gradually expanded, and then discovered a new platform. In any case, they are good at finding problems and are good at tackling the tide and accumulating power in solving problems. They are good at opening up the market and are good at fighting in any complex market environment. From small to large, simple and complex, from the domestic to foreign countries, from the "scattered chaos" that people do not see, to achieve the global automotive manufacturers suppliers, to become the strategic partner of the international auto parts giant.
Who is changing their fate step by step?
One argument in the industry is that as China has gradually emerged as the world's largest auto market, the market for domestic component suppliers has also been expanded because it enables them to form economies of scale. Obviously only half right.
In fact, there is no shortage of pessimistic arguments, alarmist prophecies and pressure from all sides around this huge, seemingly weak industry, even in the days when the Chinese auto market is growing rapidly.
In December 2008, the appellate body of the WTO dispute settlement mechanism finally ruled that China’s tax policy in the automotive component sector violated WTO regulations and China’s commitment to WTO accession; in 2009, when China’s car production and sales repeatedly achieved breakthroughs, it came from various countries. Anti-dumping investigation followed...
Difficulties have always been the touchstone for testing internal forces. How far is it from a small plant with a strong dependency, low technological content, and low resistance to risks to a world-class supplier? In the global counterbalance, we must listen to the screams of others. Whether it is because of appreciation or fear.
World experience shows that the development of the auto parts industry is an important driving force for the advancement of vehicle technology. In China, the parts and components companies driven by the development of the entire vehicle industry have begun to play a more important role. This is also the commemoration of our cover story.
"Don't look at me as just a sheep. The cleverness of the sheep is unimaginable." A good song, isn't it?
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