How to quickly adapt to the new normal, strive to win in the new round of fierce competition, become the auto parts company's "heart, eyebrow lock." At the beginning of the new year, the reporter interviewed Chen Heping, deputy general manager of Guangzhou Automotive Group Co., Ltd., on issues such as how China's auto parts companies develop under the new normal. Â 
New normal Chinese-funded parts companies survive tougher
“The impact of the “macroeconomic overall†cooling†on parts and components companies depends on the specific enterprises. It is beneficial to the scale and advantages of competition, especially the development of some international parts and components companies, but most parts and components companies, especially Chinese-funded enterprises Parts companies are faced with increasingly difficult living conditions, but it is not impossible for enterprises to achieve rapid development through their own efforts.†Chen Heping told reporters in an interview that at present, China’s auto brands are numerous, and the company’s production capacity has expanded rapidly, leading to more fierce competition in the industry. In the next few years, this competitive situation will not change.
Chen Heping elaborated the similar laws of the development of internationally outstanding auto parts enterprises. He introduced that these parts and components companies are formed through long-term accumulation to form today's competitive advantage. Their growth process is divided into two categories. First, they only focus on one subdivided product for hundreds of years, insisting only on companies that are good at their products; second, some spare parts companies, especially those of European and American countries, on the company itself. In the course of development and expansion, M&A will continue to be beneficial to oneself, so as to quickly form a competitive advantage for the enterprise.
Under the current competitive situation, parts and components companies in all countries are concentrating on their own "hands-on" products, making this product most competitive in the international market. This has created higher barriers to competition in the development of Chinese-funded parts and components companies. Chen Heping said, "We will continue to maintain the world's No. 1 car production and sales. The demand for the automotive market in China will remain large in the next few years. For Chinese-owned auto parts companies, especially private enterprises, if strategically appropriate, tactics It is not impossible to achieve great development in certain subdivided areas. However, if some companies do not keep pace with the times, it is inevitable that they will be eliminated.â€
The initial shape of Chinese-funded outstanding parts and components enterprises
Under the new normal, the survival environment of China's auto parts companies is becoming more and more difficult, but only if they are bigger and stronger can they stay away from the fate of being eliminated. How to form an internationally renowned enterprise in a short period of time is an urgent necessity for China's auto parts and components to “strike throughâ€.
China's huge auto market provides fertile ground for business development. According to Chen Heping, for those auto parts enterprises that are “backed by big treesâ€, if the group’s strategy is clear, tactics are implemented in place, and the policies are also continuous, combined with the company's ability to strengthen internal skills, the company adopts internationally accepted merger and acquisition strategies. With two-pronged growth and expansion, such companies will emerge. At present, the group army has emerged as a prototype of an internationally-advanced component supplier, but not much, and Yanfeng is one.
In China, the development path of private parts and components companies is mostly from scratch, from small to large, starting from the low-end products. Then it accumulates over a long period of time, especially under the urging of the capital market, and it develops rapidly. Chen Heping said: "The current strength of private enterprises is lofty and their vision of competition is not limited to China. They have already learned to use international resources and both domestic and international markets. In the future, these private enterprises may also excel in certain industries. At present, a number of companies have emerged. For example, auto parts companies such as Hangsheng, Huaxiang, Junsheng and Longcheng Precision Forging have already achieved the 'World Champion' level in one product area.â€
At present, China-funded parts and components companies have a long way to go to make system suppliers for auto parts. But over time, it does not rule out the emergence of world-class outstanding companies in private parts and components companies. Chen Heping said: "The communications equipment industry is worth our reference. More than 10 years ago, it was very difficult to install a telephone, but now China's communications industry has emerged as an outstanding international enterprise like Huawei."