The introduction of the car parts market is particularly significant for the caliber of vehicles and innovation in China’s own brand. However, the closed development pattern has restricted the introduction of proper partnership between your vehicle enterprises and also the auto parts companies. To keep track of the interest rate of automobile industry, the car parts industry ought to be further developed. This is the conversation from a reporter and also the deputy secretary-general of China Association of Automobile Manufacturers (CAAM).
Reporter: Recently, China’s auto parts enterprises make significant progress, however they still can’t meet up with the interest rate of companies which produce vehicles. Do you know the reasons?
Dong Jianping: For any lengthy period, products of domestic components industries are low-finish. Generally, individuals joint ventures of car manufacturers don’t use domestic components since they’re not positive about the caliber of these items. Using the opening from the automotive market, you will find limitations on the amount of vehicle enterprises. However, there’s no restriction around the auto parts companies. Consequently, many foreign enterprises invest and make factories in China. Their acquisitions and mergers cash effect on the domestic brands. Thus, the component industry can’t meet up with the interest rate of car industry, resulting in the restriction of growth and development of the domestic component industry.
Reporter: The domestic parts companies happen to be producing low-finish products. Could it be due to the little purchase of the technical development and research?
Dong: Really, technical development and research is an extremely complex process. At the outset of the reform and opening policy, domestic parts and components enterprises cooperated with lots of foreign companies. They offer technology to the domestic enterprises. Therefore, the domestic companies have to manufacture based on the drawing. However with the expanding from the automobile market, many advanced component enterprises don’t provide technology to Chinese companies. They simply develop individually. Because many domestic information mill determined by foreign technology, they are unable to survive with no core technology.
Reporter: Where’s the event road for Chinese auto parts industries?
Dong: Although a lot of domestic component enterprises allow us perfectly, many of their technologies copy from others. They don’t grasp products’ core technology essentially. Actually, auto parts enterprises should cooperate well using the vehicle manufacturers. Meanwhile, the second must take responsibilities to produce good relationship using the former. In the end, the car parts industry can offer service for vehicle companies. For instance, they are able to provide various auto part products for them for example bearings, gears, brakes and so forth.