Auto Parts: The Final Line of Defense for China's Automotive Industry


Santana's localization rate is over 90%, and 2/3 of the accessories market is occupied by fake goods.
In early November, a massive counterfeiting campaign was launched nationwide, and the anti-counterfeiting of auto parts was still the top priority of the operation.
According to the latest data provided by Shanghai Volkswagen, the company’s self-produced parts and components have annual sales of 1.4 billion yuan, and this figure only accounts for about 1/3 of its auto parts market, and the remaining market share of nearly 3 billion yuan. Imitation and counterfeit accessories. Since 1997, the State Bureau of Technical Supervision has been listing the auto parts counterfeiting of Shanghai Volkswagen as the focus of counterfeiting by the national technical supervision department. In the past two years or so, Shanghai Volkswagen has cooperated with the public security, industry and commerce, and technical supervision departments in a total of more than 770 counterfeits and counterfeit dens, and investigated and dealt with counterfeit products worth more than 90 million yuan.
Why fake auto parts take aim at Shanghai Volkswagen?
Why Shanghai Volkswagen will become a big seller of fake auto parts damage? On this issue, many people in the industry believe that Shanghai Volkswagen has a large volume of production, a high market share, and a large demand for auto parts. However, due to the intellectual property rights, its genuine auto parts price is high, such as a genuine Santana headlight of 333 yuan, while counterfeiting The product is only 35 yuan, a difference of nearly 10 times. As a result, profit-driven criminals take the risk.
There are also some industry insiders believe that the scarcity of after-sales service outlets is the driving force behind the production and sales of fake and shoddy products. Taking Shanghai Volkswagen as an example, the company has so far produced 1.5 million cars, but the number of after-sales maintenance service stations nationwide is less than 500. On average, only one repair service station is required for every 3,000 vehicles, which makes counterfeit products. With opportunity.
However, Shanghai Volkswagen has different interpretations. Zhang Jiajie, a manager of the company's sales company, believes that Shanghai Volkswagen's maintenance service network can basically meet the national Santana service. He said: The principle of Shanghai Volkswagen's distribution in the country is that there are more cars and fewer vehicles. For example, in Shanghai, Santana has between 60 and 70,000 vehicles and 35 service stations. There are about 60,000 sedans in Beijing and 33 service stations are approved. There are 57 in Jiangsu Province. Of the 50 businesses that have been approved for business and are operating, Xinjiang has approved 10 of them and 6 of them are operating; Tibet also has a service station.
Manager Zhang believes that the reasons for the proliferation of auto parts, especially Santana auto parts counterfeits, are the following: First, prices, and fake goods are cheaper than real goods. Some car owners are greedy for cheap, resulting in a loss. The second is that many people repair car relationships, and even long-term relationship households, and therefore do not want to go to a special repair station to repair the car, and Shanghai Volkswagen will only provide pure auto parts to special service stations. The third is the phenomenon of social corruption. In order to get a rebate, he will not hesitate to trade in the national interest. The fourth is to undermine public welfare, especially some taxi drivers in Shanghai believe that anyway, the car is the company's. Using counterfeit auto parts can save money. After the car is finished, the company has finished and has nothing to do with it. These have become breeding grounds for counterfeit products.
Benefit-driven is an important reason for the proliferation of fake auto parts. The relevant person of Shanghai Volkswagen pointed out that apart from personal factors, the social environment is also responsible for the proliferation of counterfeit auto parts. For example, the production and sales of counterfeit auto parts in certain regions or cities have formed an industry, some places have also become distribution centers for counterfeit products, and some markets that sell counterfeit auto parts involve the interests of local governments, even those opened by a certain government. For the protection of the local protection and the interests of the department, the legal weakness also facilitated the preparation of fake counterfeits.
The Criminal Law stipulates that the punishment for the crime of producing counterfeit and shoddy products shall be calculated on the basis of the sales amount. Therefore, it may only be fined for the dented counterfeit products to be seized. According to relevant judicial interpretations, counterfeiting cases that constitute crimes should be prosecuted and evidenced by the counterfeit or infringed units themselves. This makes counterfeit criminals found in the inspection process often escape the legal sanctions and impose only fines.
Insurance company’s illegal claims are also the reason for conniving counterfeit auto parts. Some insurance companies have designated non-manufacturer-repaired factories to repair accident vehicles to reduce claims, and have paid claims for counterfeit auto parts.
In addition, the country's mandatory standards for the quality of auto parts are seldom pitted, and it is not enough to stop the existence of counterfeit auto parts. Of course, the most serious is the country’s misunderstanding of the auto parts market. In August this year, the State Administration for Industry and Commerce held an auto parts counterfeiting meeting in Chengdu and entrusted the National Auto Parts Industry Association with organizing and preparatory meetings. However, the interests represented by the association are completely opposed to the interests of auto manufacturers. Because the auto parts have specificity, the technology of such parts should be the intellectual property rights of the developers. Automobile manufacturers will not supply parts to the market. Therefore, many parts of the accessories should not have the “market” argument. The so-called market is only fake and imitation parts. market.
The auto parts industry urgently needs to vigorously develop and use a lot of space to talk about the reasons for anti-counterfeiting of auto parts. It is trying to arouse serious concerns. It is precisely because of the above reasons that many people realize that if China's already vulnerable auto parts industry continues to suffer from counterfeit products and smuggled products, it will be in turmoil. It will also make China's auto industry completely degenerate into a vehicle assembly industry for foreign automakers in the near future—perhaps after three years and five years, and the real Chinese auto industry may no longer exist. . In this sense, the auto parts industry should be the last line of defense for the Chinese auto industry.
Due to historical reasons, the Chinese automobile industry basically continues the two major links of production and sales, and after-sales service is not within the scope of the automobile manufacturers. The after-sales service of most manufacturers is responsible for the car repair shops scattered all over the country. Most of these repair shops are owned by the Ministry of Transport. Their qualifications are also regulated by the labor department and the transport department; The roadside shops that “repair tires and provide accessories” have not been supervised except to pay industrial and commercial taxes.
For a long time, the idea of ​​development of heavy-duty trucks and auto parts has made the Chinese auto industry always walk with a squat leg: the legs of the vehicle are heavy and the legs of the auto parts are small, so they are struggling.
At present, the status of China's auto parts industry is: There are more than 700 auto parts companies in China, with sales of 34.05 billion yuan last year. Although most of the domestic parts and components can be made at home, the localization rate of Santana has reached more than 90%, and localization rates of Audi A6, Shanghai Buick, Guangzhou Accord and other models have also reached 40%, but due to the strong specificity of these auto parts. High technical standards are required, so it is difficult for general auto parts manufacturers to undertake.
Since the reform and opening up, domestic demand for imported auto parts has greatly increased. Due to the globalization of spare parts procurement, China has been the most affected by the entry of the WTO in terms of auto parts in relation to the entire vehicle. This is because China's auto parts manufacturers have a weak foundation and low technological level, so they have little market share. The business of Shanghai Buick's headlight cover is a typical example taken by Taiwan's auto parts makers.
Taiwan has become the largest supplier of auto parts in Japan due to the oversupply of OEMs and the production and processing of parts. In particular, Tang Cheng, a well-known automobile salesman, first entered the mainland and started operating the automobile maintenance industry. In fact, the ulterior motives were not for wine, but for the well-known automobile manufacturers to provide good after-sales service facilities, thereby completing the sales, parts and maintenance trinity. Service system.
As mentioned before, the traditional automobile consumption chain only has two links, while foreign countries combine production, sales, and after-sales service, which makes the supply of spare parts both specific and reliable, and genuine. When interviewing Shenlong's Beijing area, the reporter introduced that they had 1,057 distributors, after-sales service, and spare parts suppliers throughout the country. They were distributed in 248 cities and regions in 22 provinces, cities and autonomous regions in China, just like gas stations. The ultimate guarantee for car consumption is in the carrier of after-sales service - the maintenance station. The biggest problem in setting points is to provide pure and inexpensive auto parts. Audi A6 has started to establish 23 sales and after-sales service stations nationwide when it reaches 500 production lots. They plan to establish 57 service stations this year. Daewoo’s Kim Yu-chung’s car dreams in China were broken, but he left behind two auto parts companies, and was the largest foreign investment company in China. It must be said that people’s understanding of the auto industry is far-sighted.
Auto Parts: The Final Line of Defense for China's Automobile Industry Most of the auto parts companies in China are labor-intensive. Due to historical reasons and lack of investment, the scattered, chaotic, and poor parts and components of automobile OEMs caused by scattered, chaotic, and poor manufacturing companies made Chinese auto parts companies unable to cope with the situation after entering the WTO, especially Delphi. Auto system companies are such a squeeze for multinational companies.
After the signing of Sino-U.S. agreement on China's accession to the WTO, U.S. negotiator Barshefski said: “Automobiles are a very important area. We agree that China will impose tariffs from the current 600 after 2006 rather than before 2005. The %-80% is reduced to 25%. In exchange, we will have the right to provide car loans and the entire distribution rights, which is very important for our auto manufacturers."
Pastor's remarks implied that foreign auto companies' thirst for profit in the sales cycle of Chinese auto industry means that foreign auto companies can legally engage in car purchase credits in China and operate auto import and export, trade rights, wholesale, retail, and maintenance. Transportation, leasing and insurance services. Moreover, during this period, the tariffs on auto parts will be reduced from the current 45% to 10%, while the localization policy and differential tariff policies will be abolished. However, it is precisely based on this differential policy that Chinese auto parts companies have mushroomed and many military enterprises have also converted auto parts.
After the cancellation of these mandatory and protective preferential conditions, especially after the Chinese government gives multinational companies such as Delphi Automotive Systems the right to trade and distribute auto parts, domestic automakers will switch to foreign countries in large quantities. With high-tech and high-quality parts, the number of parts and components companies formed in the country over the past decade has been largely closed down. Those who survived may only be able to produce low-tech, low-value-added, low-invasion parts. Nowadays, the precarious domestic automobile plant may become a low-value-added vehicle assembly plant. Because parts and components are controlled by outsiders, the country’s own auto parts innovation development and upgrading will no longer exist. The lack of skin and the presence of Mao Zedong, in response to the proliferation of counterfeit auto parts, has led some insightful people in the automotive industry to begin to disappoint with the future of auto parts companies with independent development and proprietary intellectual property rights. The warning given to us by auto counterfeiting is serious. If the last line of defense is punished by ourselves, the Chinese auto industry is really dangerous. (Reporter Shen Xiaoyu / text)

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