Corporate restructuring

The world's major auto companies have reformed their supply systems, implementing global production and global sourcing, from sourcing from multiple auto parts manufacturers to sourcing from a few system suppliers; from single auto parts procurement to module procurement; Transformed into global sourcing. The reform of the procurement system of OEMs requires auto parts manufacturers to constantly adapt to them. It not only requires auto parts manufacturers to expand their own strength, improve product development capabilities, system development, system supply, but also requires them to shorten development. Cycle, providing quality and cheap products. This change has promoted the process of mergers and acquisitions and restructuring of the auto parts industry worldwide.

Chain development

The market concentration is higher than in previous years. The OEMs are increasingly modularized and systematically procured, and the cooperation between suppliers is closer. As a result, the global auto parts supplier system gradually evolves into a pagoda structure. The first-tier manufacturers are responsible for the management of the entire supply chain, making the cooperation between the supply chains more standardized. Companies like this are top-notch in their respective markets. They occupy 80% of the market and dominate the high-end market. The CEO of a component company said: "With the rapid growth of production and sales of the whole vehicle, the parts and components enterprises have encountered a once-in-a-lifetime opportunity. If they do not catch up with this express train, they will fall behind and will be eliminated."