The development of spare parts industry can not be eager for success

As the world's largest auto parts supplier, Bosch pays great attention to the Chinese auto market. Recently, Bosch China made its debut at the 9th Guangzhou Motor Show on a larger scale. Dr. Xu Daquan, executive vice president of the company, was interviewed by a reporter from International Business Daily.

Reporter: As the world's largest auto parts supplier, how does Bosch prepare for the current Guangzhou auto show?

Xu Daquan: Bosch China participated in this auto show mainly focusing on "cleanliness and economy, safety and comfort", demonstrating adaptive cruise control system (ACC), ninth-generation ABS/ESP, and other innovative technologies that are aimed at improving driving safety and comfort. And the latest localization of clean diesel technology - the economical high pressure common rail system CRS1-16 and the commercial vehicle exhaust gas aftertreatment system Denoxtronic6. At the same time, the Bosch Clean Diesel Technology China Tour, which was launched in late October, also arrived at the auto show site to demonstrate to the public the multiple advantages of clean diesel technology.

The Bosch booth also displayed important products such as the latest generation of pressure steel strips developed for the CVT, and the regenerative braking system HAShev developed specifically for hybrid and electric vehicles. There are also some home appliances to enrich the brand image of the entire company.

Reporter: How does Bosch see the cooperation with domestic OEMs?

Xu Daquan: Nowadays, domestic consumers are increasingly demanding the quality of automobiles. Geely and other OEMs are increasingly using internationally renowned brand components to replace their existing suppliers. After all, the host plant did not want to smash its own brand because of parts quality problems. In addition, the decrease in the price difference between internationally renowned parts and components and domestic suppliers has made OEMs realize that "price is not a problem." Even if it is higher, it also solves the after-sales cost, which is cost-effective for both companies and consumers.

Reporter: There are still some companies in China that have a high rate of self-preparation of parts and components. What do you think? What are the pros and cons?

Xu Daquan: Host parts and related parts and components of their associated companies, often face two aspects: First, due to quality, cost, logistics and other internal contradictions formed; Second, due to economies of scale and other factors, and the difference between professional suppliers Unmatched.

In the world, the OEMs of European and American manufacturers are completely separated from the parts manufacturers, and there are various links between Japanese manufacturers. For example, the prices of some OEMs and their associated parts factories cannot be discussed.

Reporter: How does Bosch solve this problem?

Xu Daquan: Bosch has become more and more open to the main engine plant. Some customers have independent intellectual property rights requirements for the control software, and the hardware of the spare parts company has given Bosch a certain degree of support. Because of the need for greater investment, it still depends on the host plant itself. 10 years ago, when domestic automobiles had just started the control of engine EFI, most of them were completed by professional parts and components companies. Now, there are more and more calibrations, and there are other projects. The first time they taught them to do it, and later it was the OEM's own team. If Chery develops its own EFI software and then uses professional manufacturers' hardware, it has already started loading cars last year, entering a new model, and it may develop in the future.

It is worth pointing out that the system technology such as engine EFI is a long-term accumulation, direct injection, booster systems, etc. all require a lot of investment, large teams, human resources and accumulation, but also to ensure that the module, design No problem waiting.

Reporter: This year, the growth rate of the automotive market has slowed down, and OEMs of self-owned brands have also been affected. What do you think? What are the impacts of professional parts companies?

Xu Daquan: The market share of self-owned brands has dropped by 3-5% this year, among which minivans and commercial vehicles have fallen more. I think there are several reasons: 1. Brand effect, the market's cognition of independent brands needs to be improved; 2. The price in the international market is lower, and the gap is not large; 3. The internal adjustment of some companies has also affected the market performance, and some independent companies have entered the adjustment period, such as BYD.

Bosch has a certain influence in the Chinese market. Despite the rapid growth of the automotive market, most of the partners are very good with our products and think they have some help. In terms of new products, Bosch has advantages in terms of intellectual property, business operations, or technical processes. Opening the market is quick and it can be done in strict accordance with the process. In addition, we also have some joint ventures with China, such as Weifu and United Electronics. China also participates in management.

In short, it is impossible for the market to maintain an annual growth of 30%. Despite the fact that the auto supply was still in short supply at the end of last year, the auto companies were still unwilling. However, this year it has come to a big brake and it may continue to adjust next year. Everyone's capacity planning is very large, the market will have to integrate, only a strong company can survive, mergers and reorganizations may really happen?

Reporter: In the development of China's business, Bosch has selected a large number of localized high-level talents. In your opinion, how does Bosch choose people in the Chinese market?

Reporter: Bosch's selection of people in the Chinese market has two important points. The first is to be familiar with the Chinese market and the second is to have good communication skills.

Reporter: What are the recommendations for Chinese auto parts companies?

Xu Daquan: At present, the Chinese government is also encouraging enterprises to take the path of developing independent core technologies. It is also a complex for many companies. Engine common rail, EFI, automotive ABS, etc. are all technologies that have been developed for decades. Domestic companies need to continue to accumulate technology and scale. Enterprises themselves must really engage in it. They should make a solid investment and cannot be eager to achieve success. In the next 10-15 years, there will be a certain gap between the development of enterprises, but it must be done in a down-to-earth manner. The automobile is a systematic project. The design, technology, logistics, supply chain, management, sales, etc. are all well done to enhance competitiveness.