Domestic parts bend overtaking

Recently, the National Development and Reform Commission and the Ministry of Commerce have revised the Catalogue for the Guidance of Foreign Investment Industries. According to the Exposure Draft, it is clearly stipulated that foreign investors are encouraged to establish new energy vehicle joint ventures in China, but the proportion of foreign ownership of new energy vehicle key component enterprises shall not exceed 50%. This is the first time that the country has clearly defined the joint venture shares of key components of new energy vehicles. This requirement will definitely have a greater impact on the overall industrial layout of parts and components multinational companies in China.

Compared with the entire automotive industry, new energy vehicles are undoubtedly the future trend. The ratio of 50% to 50% of the revised shares is beneficial to the Chinese auto industry in achieving a curve overtaking in the wave of new energy vehicles.

There is no doubt that foreign investment in new energy components and cakes, comprehensive policies, power grids, market potential and other factors, electric vehicles are most likely to first achieve commercialization in China.

At the just-concluded Shanghai auto show, multinational giants including Bosch, Johnson Controls, Continental, Delphi, etc. competed to exhibit their most advanced parts and components technology, especially in the areas of new energy and electric vehicles.

It is noteworthy that lithium batteries jointly produced by Bosch and Samsung have been applied to BMW's pure electric vehicle Ac-tive-E, and the joint venture with Mercedes-Benz will produce motors for use in Mercedes-Benz and smart brand electric vehicles. Supply other vehicle companies.

Another component giant, Delphi, differs from Bosch's choice in electric vehicles. Instead of batteries, Delphi does a battery management system. Delphi calls it the “Power Electronics” system. In terms of batteries, Delphi and Bosch have a cooperative relationship. In addition, electric vehicles, Delphi involves an important area of ​​electronics and electrical architecture, which is mainly due to Delphi's dominance in this area.

In fact, in terms of core technology, the monopoly of foreign investment in China’s auto parts industry is indeed very prominent. According to the “China Auto Parts Industry Survey and Research” conducted by the National Information Center in 2009, the top four companies in domestic production of gasoline electronic control systems are UMC (Bosch JV), Denso, Siemens VDO, and Delphi Wanyuan all have foreign capital backgrounds. Their output accounts for 80% of the total output of domestic petrol E&M systems, of which UMC’s market share accounts for 40%, while local companies lack 1%.

It is easy to see that foreign investors are very optimistic about China's automobiles, especially the new energy market, and are fully prepared.

The competition for stocks in the domestic component springs up to the present China's auto parts industry is mainly composed of three parts of capital: state-owned capital, private capital and foreign capital. After entering the WTO, the domestic market was further liberalized. The obstacles such as the localization of foreign investment, technology transfer, and foreign exchange balance have been eliminated, and all auto parts and components, including the engine, are allowed to be joint ventures or wholly-owned by foreign companies.

According to statistics, the number of newly approved foreign-owned auto parts enterprises in China has been higher than the number of joint ventures in recent years. Multinational auto parts companies have brought capital, technology, and management to the development of China's auto parts industry. However, while promoting the progress and upgrading of the domestic parts and components industry, they have also occupied a large number of domestic markets, and have also restrained local companies from Independent innovation in technology and other aspects.

Prior to this, China’s auto industry policy had a share-to-equity ratio restriction for vehicle joint ventures and stipulated that foreign ownership should not exceed 50%. However, there are no excessive restrictions on foreign investment in the production and sales of spare parts. In particular, there is no limit on the number of shares in the joint venture, and foreign investors are allowed to invest in the foreign investment. Today's China automobile industry chain, due to the full liberalization of foreign investment in auto parts, logistics, sales, finance, etc., with the increase of foreign investment in China, some foreign brands have formed a monopoly in the domestic key components.

The designated "key components" involved a wide range, including power batteries, cathode materials, diaphragms, battery management systems, motor management systems, electronic control integration, drive motors, coupled drive systems, electric air conditioning, electric brakes, and electric drives. Power steering, idle start and stop and so on.

The "Catalogue" promulgated by the National Development and Reform Commission is the first time that the country has established a joint venture share ratio for key components of new energy vehicles. This provision may have a profound impact on the overall industrial layout of multinational companies' parts and components in China. Spare parts or spring will come across.