At the end of 2013, Roland Berger Management Consulting published the "Global Auto Parts Supplier Research Report 2013". The "Report" shows that the global auto parts supply industry is profitably stable at high levels. The data shows that EBIT interest before tax and profit margins in both 2012 and 2013 are both 6.5%. The biggest areas of profit for suppliers are chassis, transmission systems and tires, while profits in interior trim components will shrink further. With high technological content and high profits from high added value, it stands out in the chassis, transmission system and tire industries. This means that the scale of the automotive aftermarket is huge and profits are rising. Many products such as tires have much higher profits in the aftermarket than the entire vehicle OE market. Driven by profits, international parts and components companies such as Bosch, Denso, and China have also accelerated their presence in the Chinese aftermarket. In the fierce market competition, how is the development of domestic parts and components enterprises? According to the third quarterly report of 74 parts and components companies listed in Shanghai and Shenzhen stock markets at the end of 2013, the total operating income of 74 auto parts enterprises was approximately 252.238 billion yuan, and the business income exceeding 70% was stable growth compared to the same period of last year. It can be seen that currently China's suppliers have higher profits, but there are also many challenges in the future. Every year, the OEM has a price cut for parts suppliers. The margins of suppliers continue to be squeezed. In addition, the core technology of domestic parts manufacturers is lacking and blindly fighting for prices, the vicious competition in the market is serious. People in the industry believe that, in order for auto parts companies to develop, they must devote more efforts to product quality in addition to product innovation. Not long ago, Changan Ford was eager to list a new model in the heat of the Chinese SUV market. However, after the Mavericks' "Axis of Broken Gate" was frequently launched, the problems that they exposed in the supply system and the problems in the management mechanism may be a wake-up call for peers. At present, domestic auto parts suppliers generally adopt the “to map processing†model, that is, auto manufacturers provide product data and drawings to suppliers, and the latter manufactures according to drawings. For a global model such as the Maverick, the only difference in the case of the same drawing should be on the materials used. In fact, the defects in raw materials have always been one of the main causes of the recall incident. With the increasingly fierce competition in the Chinese auto market, controlling the cost of the entire vehicle is the preferred action for joint venture auto makers and independent auto makers to obtain more profits. In the Chinese market, it is common for the joint venture car companies to carry out various types of reductions in their models for profits, and even to cut corners. The research report of Beijing Shangpu Information Consulting Co., Ltd. believes that in recent years, the prices of domestic raw materials have been rising continuously. With the continuous reduction of vehicle costs, manufacturers will inevitably reduce the cost pressure and transfer them to the parts suppliers. Some suppliers cut corners. "At present, China's auto market is developing at a rapid rate, and the localization of parts and components is accelerating. The vehicle manufacturers have to win the market in order to reduce vehicle prices, and they are constantly squeezing the spare parts suppliers' space. If they continue to develop, the quality of auto parts will be of concern." Although some companies often claim that their localization rate is as high as 95%, in fact, more than 80% of the parts and components of the country's parts and components factories follow the entire vehicle to the domestic market, and strictly speaking, it is not considered domestically. There are few pure domestic suppliers, such as chrome bars of some vehicles, simple interior accessories, etc., which are provided by domestic companies. “Cooperative R&D†and “independent innovation†are all far out of reach for most auto parts suppliers, especially when a significant portion of key raw materials, original devices, and high-end equipment in China are still heavily dependent on imports. . Similarly, we have also noticed that some domestic parts and components companies have made certain progress in constantly improving their competitiveness. Some parts companies have started the process of internationalization. Fast has set up factories in Thailand and Fuyao Glass has announced that it will The establishment of wholly-owned production lines in Kaluga, Russia, and Ohio, USA, and the preliminary appearance of an internationalized layout also indicate that the strength of domestic parts and components companies continues to increase, and both the matching market and after-sales services are only able to identify their own positioning and continue to strengthen. The core competitiveness can win in the fierce competition environment. Fortunately, many favorable policies introduced in 2013 are also strongly promoting the development of auto parts remanufacturing. On August 26, 2013, five ministries and commissions released the "Re-manufactured Products" implementation plan for the "old-for-for-new" pilot program, announcing the launch of an "old-for-used" pilot project, which will include remanufactured engines and transmissions as key projects. On September 16 last year, the "Beijing-Tibet Line" for auto parts remanufacturing began its journey and tested the quality of parts and remanufactured products through actual road tests. On November 21 last year, the Ministry of Industry and Information Technology issued the "Engine Remanufacturing Promotion Plan." At the same time, a number of standards for the auto parts industry in 2013 were issued or designated. On March 1, National Standards for Performance Requirements and Test Methods for Passenger Vehicle Tyre Pressure Monitoring System (TPMS) was publicly solicited for comments. In addition, the national standard for airbags has been basically completed and the mandatory standards for air quality in cars will be implemented in 2015. The development of the industry, the advancement of standards, and the continuous improvement of the industry standards for auto parts have given people an opportunity to see the healthy and orderly development of the industry. 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