IT giants have also begun to enter the auto parts industry. In 2005, Lenovo took the lead in the auto parts industry, followed by Microsoft, Motorola and other international IT giants have also expressed their desire to enter the auto parts market. In fact, the future development trend of the auto parts industry has indeed given these IT giants the foundation for a “car dreamâ€.
In the current automotive industry, electronic systems can account for 70% of the total cost of a limousine and 30% of the total cost of an ordinary car. It is predicted that the future development of the world's auto industry will fall into the automotive electronics, intelligence, networking technology and applications. The real goal of the IT giant's acquisition of auto parts companies is to declare war on the vehicle design and initiate a revolution in the standardization of auto parts. If the standardized electronic components are common across different models, the traditional supplier relationship between existing vehicle companies and component companies will be broken, and IT companies will control the right to speak of the next generation of automotive electronic components market standards. Moreover, for IT companies, this is not a diversified operation in a general sense, but an extension of the main business. It is a diversified, multi-centered, future-oriented company.
In addition, joint ventures of foreign small companies are also entering the auto parts industry. In the past, parts and components companies that went abroad to open up markets in China were basically large companies and mainstream companies. However, at present, overseas second- and third-tier enterprises and even smaller ones are prepared to take a bite on the big “cake†in the Chinese market. In fact, these small businesses are all bad ones. Even large domestic companies that compete with these small businesses may not necessarily have the upper hand. Because they compare with foreign large parts and components companies, although the brand is a little inferior, but in technology, technology, etc., compared with Chinese companies are still very competitive. In addition, compared with Chinese companies, although they do not have an advantage in terms of cost, finesse, expertise, and flexibility are common features of these companies. For example, many of them are produced in a joint and collaborative manner. Several small companies form a “honeycomb†organizational structure with precise division of labor and cooperation, effectively maximizing efficiency and minimizing costs. As overseas small companies enter the Chinese mainland market one after another, it will surely pose a new round of challenges for local parts companies.