Recently, the news that the Beitai Group, a top 100 component company, was provisionally liquidated attracted the attention of the industry. This incident reflects the fact that the impact of the financial crisis on the Chinese auto industry is developing in depth.
Beitai Group is a typical component export-oriented enterprise. Its products include core components such as automotive suspension systems, automotive brake systems, and automotive chassis systems. It is the first company in the same industry to enter the international auto parts market.
Without this crisis, Beitai may become one of the legends of the history of auto parts development in China. From June 1997 when Beitai started production of its first plant in Anhui, it became one of China's top 100 auto parts enterprises by 2004. Beitai has developed rapidly and has successfully entered the GM, Chrysler and Beijing Benz supporting systems.
However, industry analysts have analyzed that this rapid development process has extremely unstable factors: First, the company's development relies heavily on financial institutions and capital markets; Second, the company has to expand abroad when it does not have a solid domestic market business. The market, so far most of its business comes from foreign markets, especially the North American market.
The global financial crisis has weakened the world auto market. The auto giants including General Motors, Toyota, and Ford have lowered their sales targets for 2009, and the crisis will inevitably affect parts manufacturers.
"Obviously, the total demand in the international matching market is declining. Therefore, it has already participated in the international suppliers, and it may face a reduction in the orders already received," said Chen Wenkai, president of Gasgoo.com.
The shrinking market may not be the most terrible. What really worries the industry is that, in the face of the deterioration of the living environment, auto parts companies engaged in international trade have begun to carry out industrial transfer and increase the development of the domestic market, so that the local car Parts companies face more fierce competition.
Therefore, similar to the Beitai Group’s development model of first making an export market and then doing a domestic market, it has faced a severe test in the current financial crisis. Although Beitai established cooperation relations with Beijing Benz and Shanghai GM in 2005 and 2007 respectively, its expansion in its domestic business is obviously not as rapid as the current financial turmoil, and companies are in a dilemma.
In this regard, Xu Changming, deputy director of the Information Resources Development Department of the State Information Center, interviewed by the China Economic Times, pointed out that large-scale enterprises that are able to enter large-scale automobile parts and components are often "relatively deep-seated" related companies. Emerging companies actively engage in export business when their domestic market is insufficient to support their production development, which puts their development at great risk.
Xu Changming said that the current domestic auto consumption has not shown a sustained downturn, so many companies place their hopes on the domestic market. However, the financial crisis has caused the overall domestic automobile exports to suffer heavy losses. The original export-oriented auto parts companies may have to face transformation, so they will encounter great difficulties this year.
According to the statistics from the China Association of Automobile Manufacturers Industry Information, although the auto parts exports continued to grow at a relatively high speed in 2008, the growth rate has declined to varying degrees, especially the export of core components such as automobile engines, compared with the previous year. The growth rate has fallen by more than 50%.
“The financial crisis will be difficult to eliminate in a short period of time. The negative impact on export-oriented parts and components companies will persist for a long time.†Yang Aiguo, a researcher of the China Automotive Mechanic Products Import and Export Chamber of Commerce, said in an interview with this reporter that despite China’s automobile The industry has shown some improvement under the support of a series of national policies. However, the global automobile crisis that is sweeping the world may not be far behind.
However, Yang Aiguo also pointed out that domestic auto companies are not without opportunities. Although European and American markets still have a greater appeal to Chinese export-oriented enterprises, they are similar to those exported to Southeast Asia, West Asia, Africa, Latin America, and Russia. The market, its scale is expanding year by year, also need a lot of matching after-sales service, this is an opportunity for the parts and components industry.
“But the policies of the automobile industry in these countries and regions are prone to change and need to be vigilant. Take the Russian market as an example. Although in 2006 Russia became the country’s largest exporter of complete vehicles, when its domestic economic situation changes, it will give There are many obstacles for Chinese auto companies to "make" in Russia," said Yang Aiguo.
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