Automotive Parts: Cartilage is "Calcium"

There are significant issues with the quality of domestically produced car parts. Due to the high cost and limited availability of imported components, consumers often face challenges in accessing affordable spare parts, leading to a growing demand for better local alternatives. When purchasing a car, buyers consider not only the vehicle's price or brand but also the long-term costs, especially the price of after-sales parts. This has become a key factor influencing consumer choices. Reports indicate that some vehicles come with advanced technology and high-level configurations, which require equally high-quality spare parts. However, many domestic parts fail to meet these standards, forcing manufacturers to rely on imports. Although imported parts tend to be more expensive, they offer better quality and lower failure rates. Nevertheless, there is a noticeable price disparity among different brands and models, with the same part sometimes costing several times more depending on the manufacturer. This discrepancy highlights the low level of localization in the auto parts industry. Most joint ventures use KD (knock-down) production, which involves importing components and assembling them locally. While this method allows for rapid production, it creates a gap when after-sales demand increases. Manufacturers often struggle to establish an efficient spare parts supply chain quickly, resulting in continued reliance on imports. These imported parts go through multiple price hikes during the import process, ultimately increasing the burden on consumers. As a result, spare parts have become a major consideration when choosing a car model. Improving localization can help reduce costs and make parts more competitive. For example, a popular Chinese sedan achieved success by leveraging large-scale production and a localization strategy, allowing it to offer highly competitive spare parts prices. Such strategies are worth emulating by other domestic manufacturers. Consumers are becoming increasingly aware that owning a car involves more than just the initial purchase. The cost of repairs and parts now plays a critical role in their decision-making. With cars priced around 100,000 yuan, even a few thousand yuan in repair costs can be significant. Therefore, there is growing expectation that part prices could be reduced similarly to how car prices have dropped over time. The development of independent automotive technology and brands has been a long-standing topic of discussion. Industry experts emphasize that improving the overall quality of domestic spare parts is essential for building strong national brands. This echoes the success of China’s home appliance industry, where strong self-reliance in spare parts led to breakthroughs and global competitiveness. To survive and grow, the Chinese auto parts industry must embrace foreign investment and allow international companies to enter the market. Only through collaboration can China enhance its overall spare parts capabilities. While relying on external forces is necessary, the core of development lies in strengthening domestic R&D and determination. After all, the automotive industry is a complex system that requires coordinated efforts from all stakeholders.

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