March 31 reported that for small auto parts companies, "weak" seems to be synonymous. Of course, there are reasons for lack of core technology and industrial chain control, but we cannot ignore the important factor of foreign-funded enterprises suppressing Chinese-funded enterprises through various means. Then, what tricks do foreign-invested enterprises use to encircle Chinese-funded enterprises? To this end, this edition introduces a series of reports on “Those Behind the Scenesâ€, so please pay attention to the readers. At the same time, readers are welcome to participate in the discussion on this topic and provide valuable news clues.
Relying on technological leadership and the blockade of core technologies, foreign-funded parts and components enterprises have achieved great success in China, and almost monopolized the core components. According to relevant statistics, foreign auto parts companies have accounted for nearly 80% of China's parts market. In contrast, autonomous core component companies that started late are never able to pose a threat to foreign component companies. This is largely due to the suppression of foreign investment. If the foreign core components have been suppressed by the technical blockade in the past, then now, in addition to the "big mountain" technology, the company has added a price "trap" in front of the independent parts companies. With a low-price strategy to suppress independent products, a commercial competition in price competition is being staged.
Zhejiang Asia-Pacific Mechanical & Electrical Co., Ltd. is a leading ABS manufacturer in China, and its products are mainly supplied to independent brand auto companies. Due to the low price of its self-developed ABS, the market share in independent brand enterprises is gradually increasing. But in the recent period, the price pressure from rival Bosch has made the days in Asia Pacific difficult.
Since Bosch has implemented a low-price strategy in the Chinese market in recent years, the Asia-Pacific autonomous ABS, which had a price advantage in the ABS market, has been greatly affected. It is understood that in 2004, the price of ABS produced by Bosch was 2,200 yuan per set. Such high pricing, although there are objective reasons for the low degree of localization of products and the fact that the cost has not been effectively controlled, but the timing of China's independent ABS enterprises being backward and unable to compete with them is madly drawing high profits, and the ABS price is also high. The main reason. Today, Bosch's new ABS, which has more advanced technology applications, has dropped to 480 yuan per set. At the same time, China's independent ABS is difficult to achieve such a level of cost control. The lowest price of Asia-Pacific ABS can only be sold to 520 yuan per set, which makes Asia-Pacific very passive in the market competition.
Bosch ABS has a market share of 60% to 70% in China, and its monopoly position has become increasingly stable, largely due to the suppression of the price of independent products. The price of the Bosch ABS system has experienced a high-to-low fall process, and it is clear that the price strategy of foreign core component companies in China. When China's independent ABS technology level still fails to meet market requirements, it will enter the market at a high price and divide the market without competitors to obtain high profits. When China's independent ABS technology level has been greatly improved and more OEMs have been recognized, foreign-funded enterprises have used the cost amortization to complete the scale of production in China.
In this regard, China's independent ABS products have no power to fight back. Because the technology adopted is not mature, the equipment cost is high, and the scale is not formed. The independent ABS cannot reach the cost level like Bosch, and it is in a very passive situation in the market competition. Not long ago, Bosch released the 9th generation ABS/ESP system, and the price of the system dropped by 15%~20%. This means that even if the price is lower, Bosch ABS can still make money, and the huge cost advantage is unmatched by independent products.
The same story also occurs in the field of diesel high pressure common rail systems and electronic control systems. The price of Bosch diesel engine high pressure common rail system in China has gone out of a clear downward curve with the batch process of self-owned brand products. From 30,000 yuan per set to 20,000 yuan per set, and then to 10,000 yuan, the lowest price of Bosch economical high-pressure common rail products is only 5,000 yuan, and the product calibration fee is no longer charged. In contrast, China's independent EFI products, each set price is about 5,000 yuan. In contrast, foreign high-pressure common rail products with certain advantages, both in terms of technical level and reliability, are obviously the first choice of the OEM. At present, China's independent research and development of high-pressure common rail products is not yet mature, and it is impossible to pose a threat to foreign similar products. The foreign-funded enterprises represented by Bosch are aiming at this opportunity to encircle the independent core parts enterprises.
The electronic control system is also firmly controlled by foreign investment. Taking OBD as an example, the OBD price produced by a foreign-funded enterprise is only about 3,000 yuan, and the price of the self-owned brand OBD is also so large. Competition at the same price, foreign electronic control products certainly have more market.
Despite the technological advantages, foreign-funded enterprises have formed a monopoly position in the core parts market such as ABS system, diesel engine high-pressure common rail system and electronic control system, but foreign-funded enterprises are not satisfied, and even using low-price strategy will just enter the development fast lane. China's own brand enterprises are stifling in the hustle and bustle. In the different stages of development of China's independent parts and components enterprises, foreign parts companies use different price strategies to maximize profits in order to achieve monopoly markets and inhibit the development of rivals.
Relying on technological leadership and the blockade of core technologies, foreign-funded parts and components enterprises have achieved great success in China, and almost monopolized the core components. According to relevant statistics, foreign auto parts companies have accounted for nearly 80% of China's parts market. In contrast, autonomous core component companies that started late are never able to pose a threat to foreign component companies. This is largely due to the suppression of foreign investment. If the foreign core components have been suppressed by the technical blockade in the past, then now, in addition to the "big mountain" technology, the company has added a price "trap" in front of the independent parts companies. With a low-price strategy to suppress independent products, a commercial competition in price competition is being staged.
Zhejiang Asia-Pacific Mechanical & Electrical Co., Ltd. is a leading ABS manufacturer in China, and its products are mainly supplied to independent brand auto companies. Due to the low price of its self-developed ABS, the market share in independent brand enterprises is gradually increasing. But in the recent period, the price pressure from rival Bosch has made the days in Asia Pacific difficult.
Since Bosch has implemented a low-price strategy in the Chinese market in recent years, the Asia-Pacific autonomous ABS, which had a price advantage in the ABS market, has been greatly affected. It is understood that in 2004, the price of ABS produced by Bosch was 2,200 yuan per set. Such high pricing, although there are objective reasons for the low degree of localization of products and the fact that the cost has not been effectively controlled, but the timing of China's independent ABS enterprises being backward and unable to compete with them is madly drawing high profits, and the ABS price is also high. The main reason. Today, Bosch's new ABS, which has more advanced technology applications, has dropped to 480 yuan per set. At the same time, China's independent ABS is difficult to achieve such a level of cost control. The lowest price of Asia-Pacific ABS can only be sold to 520 yuan per set, which makes Asia-Pacific very passive in the market competition.
Bosch ABS has a market share of 60% to 70% in China, and its monopoly position has become increasingly stable, largely due to the suppression of the price of independent products. The price of the Bosch ABS system has experienced a high-to-low fall process, and it is clear that the price strategy of foreign core component companies in China. When China's independent ABS technology level still fails to meet market requirements, it will enter the market at a high price and divide the market without competitors to obtain high profits. When China's independent ABS technology level has been greatly improved and more OEMs have been recognized, foreign-funded enterprises have used the cost amortization to complete the scale of production in China.
In this regard, China's independent ABS products have no power to fight back. Because the technology adopted is not mature, the equipment cost is high, and the scale is not formed. The independent ABS cannot reach the cost level like Bosch, and it is in a very passive situation in the market competition. Not long ago, Bosch released the 9th generation ABS/ESP system, and the price of the system dropped by 15%~20%. This means that even if the price is lower, Bosch ABS can still make money, and the huge cost advantage is unmatched by independent products.
The same story also occurs in the field of diesel high pressure common rail systems and electronic control systems. The price of Bosch diesel engine high pressure common rail system in China has gone out of a clear downward curve with the batch process of self-owned brand products. From 30,000 yuan per set to 20,000 yuan per set, and then to 10,000 yuan, the lowest price of Bosch economical high-pressure common rail products is only 5,000 yuan, and the product calibration fee is no longer charged. In contrast, China's independent EFI products, each set price is about 5,000 yuan. In contrast, foreign high-pressure common rail products with certain advantages, both in terms of technical level and reliability, are obviously the first choice of the OEM. At present, China's independent research and development of high-pressure common rail products is not yet mature, and it is impossible to pose a threat to foreign similar products. The foreign-funded enterprises represented by Bosch are aiming at this opportunity to encircle the independent core parts enterprises.
The electronic control system is also firmly controlled by foreign investment. Taking OBD as an example, the OBD price produced by a foreign-funded enterprise is only about 3,000 yuan, and the price of the self-owned brand OBD is also so large. Competition at the same price, foreign electronic control products certainly have more market.
Despite the technological advantages, foreign-funded enterprises have formed a monopoly position in the core parts market such as ABS system, diesel engine high-pressure common rail system and electronic control system, but foreign-funded enterprises are not satisfied, and even using low-price strategy will just enter the development fast lane. China's own brand enterprises are stifling in the hustle and bustle. In the different stages of development of China's independent parts and components enterprises, foreign parts companies use different price strategies to maximize profits in order to achieve monopoly markets and inhibit the development of rivals.
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