On December 26,  hosted by "2019 China Automotive Zero" China Automotive News Agency Co., Ltd., the Luxi County Committee of the Communist Party of China, and the People's Government of Luxi County, the” Component Industry Development Summit 2019” was held in Pingxiang City, Jiangxi Province.

"Advocating excellence and strengthening, transformation and upgrading, and high-quality development value orientation in the industry. At the same time, we build a platform for industry interaction, cooperation, and symbiosis, and contribute a unique force to the healthy and sustainable development of the Chinese auto parts industry. With the joint efforts of the industry, the auto parts industry can withstand the pressure, seek new development, and move towards a new future. Here we would like to thank the Luxi County Government and related departments for their strong support for this event, and we hope that your parts industry will develop It is getting better and better. "Liu Jianlin, head of China Energy Automobile Communication Group and chief editor of China Energy News, said in his speech.

Parts industry affected by cold winter in the auto market

Data show that since 2019, China's auto production and sales have been declining, and new energy vehicles have also fallen due to subsidy subsidies. Auto parts companies are inevitably affected by the cold winter of the auto market. The first half of 2019 reports show that auto parts supplier revenues have declined in succession. Only less than 30% of companies have achieved profit, and most of them are only marginal.

In this regard, Huo Baofeng, director of the Department of Management and Economics of Tianjin University, said that the market environment of the automotive industry in 2019 is more severe than expected, and the auto parts industry(automotive harness, car streaming harness, automobile high voltage cable) is facing many challenges. The first is the unequal status of parts and vehicles in the automotive supply chain; the second is risk management; the third is environmental protection and social responsibility; the fourth is quality management; the fifth is knowledge management and innovation, and the sixth is the formation of leadership.

Enterprises must comprehensively improve their competitiveness

At the summit, the participating experts introduced the current development status and trends of the automotive industry and provided ideas for the overall improvement of the competitiveness of component companies.

Huo Baofeng pointed out that by leveraging digital empowerment to drive organizational and technological transformation and meet the challenges of the new four modernizations, it can create core tools for a new round of competition for enterprises, and help Chinese enterprises achieve high-quality development, become larger and stronger, and come first. Component companies and vehicle companies should work together in supply chain management to withstand the severe cold in the market and seek ways to change the situation.

Electrification and intelligent networking are the most important transformation directions for the automotive industry. Regarding the development of these two fields, Lu Chun, deputy director of the Standard Management Office of the Automobile Standards Research Institute of China Automotive Technology and Research Center Co., Ltd., said that China is accelerating the work of intelligent connected vehicle (ICV) standards and leading the development of international ICV regulations and standards. At present, China has formed a completely electric vehicle standard system, completed the roadmap for electric vehicle standardization in China, and guided the standardization of electric vehicles. However, standardization work also requires the participation and support of enterprises, and the R & D and accumulation of enterprises is the source of the improvement of standardization.

Where is the strategic transformation road?

Li Shengqi, secretary-general of the China-Europe Association Gear Transmission Industry Branch and China Automotive Automatic Transmission Innovation Alliance, pointed out that the automotive industry is moving towards "new four modernizations", which will also completely overturn the automotive industry. 

Therefore, to adapt to the changes in the vehicle industry, the auto parts industry (fiber optic sensor cable, M8 Cable, M23 Cable, and automotive cable harness)must cooperate and even realize advanced technology development; it also needs to carry out modular production to adapt to changes in the vehicle's low cost; Specifically, the auto parts industry must do well in three major strategies-talent strategy, product innovation strategy, and "three major projects" strategy (that is, quality improvement, strong foundation engineering, and lean management engineering). Among them, talent strategy is the biggest problem currently encountered and requires the joint efforts of the entire industry.

"There are four important elements in the transformation and upgrading of the auto parts industry. The first is accurate strategic positioning. The most important is to reshape the corporate image and brand value in the face of the market. The second is to build a community of destiny with talents and partners to solve strategic and The contradiction of industrialization; the third is that transformation and upgrading cannot be talked about, and we must shrink our business and take a professional development path; the fourth is that transformation and upgrading must first seek survival, survival is not chaotic, but based on the long-term. Director of Development Research Center Guo Yan said.

Finally, Xin Ning concluded that we should be full of confidence in the development of China's auto parts industry. Under the premise of changing concepts, auto parts companies must have the ability to integrate, collaborate, and integrate development. Component companies must also clarify the development direction, gain insight into the market and user needs, focus on and focus on the main businesses that they are good at, and embrace change, adapt to trends and make a difference.