The annual national two sessions will begin. Every year, there will be some hot topics that are worth discussing. This year's two sessions coincided with the key points of the “Eleventh Five-Year Plan” outlook for the “Twelfth Five-Year Plan”. Therefore, during the two sessions this year, the automotive industry will become bigger and stronger, and naturally it will be no less a question of how to change from quantitative change to qualitative change.

Car commentator Jia Xinguang said that the main theme of the 12th Five-Year Plan for the automotive industry is to be strong, and to be strong is to have core technology, core competitiveness, and strengthen independent innovation. At present, the independent innovation of the vehicle has made some progress, and new products can be developed using existing foreign platforms. However, platform development is still weak. The auto-innovation of auto parts has been neglected, and the self-owned brand parts and components industry has long been marginalized. As the representatives of auto parts manufacturers in the two sessions may not be large, there have been few discussions in the past two years.

According to the data from the Ministry of Commerce, foreign investment controls the majority of the market share of auto parts, domestic sales of parts and components only account for 20%-25% of the total industry, auto parts manufacturers with foreign backgrounds account for more than 75% of the entire industry. Among these foreign suppliers, wholly-owned enterprises accounted for 55%, Sino-foreign joint ventures accounted for 45%, and local parts and components were mainly used for self-owned brand vehicles, which had a low market share.

In the areas of high-tech content such as automotive electronics and engine parts, the foreign market share is as high as 90%. Among them, the output of key components such as automotive EFI systems, engine management systems, ABS and airbags, and automatic transmissions, etc. The proportions are 100%, 100% and 91%, respectively, and 69%.

Compared with complete vehicles, parts and components have a longer investment cycle, higher funding thresholds, and greater operating risks. Today, the predicament of the lack of core technologies for auto parts in China is still evident. Domestic auto parts companies are mostly concentrated in low-end areas with low technological content and low profit levels. Prices have almost become the only means of competition for Chinese companies. In this way, the parts and components industry has gradually become a hurdle in China's auto industry, which seriously restricts the implementation of China's auto power strategy.

Li Weili, deputy director and senior economist of the Industrial Research Department of the National Information Center, pointed out that the automotive auto parts industry should seize the opportunity to cultivate the auto consumption market, promote the reorganization of the auto industry, support independent innovation, technological innovation, vigorously develop new energy vehicles, and foster Self-owned brands, expanding exports, and developing modern automobile service industries have promoted the adjustment and revitalization of the automobile industry.

Regarding the development direction of China's auto parts and components, Li Weili pointed out that the “Twelfth Five-Year Plan” proposes that auto parts and components are one of the four major development priorities. The key issue is to improve the ability of independent innovation and achieve breakthroughs in key assembly technologies and electronic technologies. New energy vehicles will drive the development of new energy components such as batteries and motors. The formation of the auto industry group will bring restructuring and adjustment pressures to the parts and components industry and must be scaled. Exports of low value-added products (tires, wheels) will face greater trade friction and must undergo industrial restructuring.

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