Not long ago, Chen Guangzu, a member of the China Automobile Industry Advisory Committee, pointed out that "the overall competitiveness of China's auto parts companies has been declining." This statement has sparked widespread discussion within the industry. The development of China's automotive sector has always relied heavily on its components and parts industry. Today, China is one of the world's leading automobile producers. But as an expert in the auto parts field, why does Chen hold such a critical view?
Chen believes that the main issue lies in the concept of "emphasizing the car over the parts," which has long dominated the Chinese automotive industry. He explained: "Building a car is well-known and profitable, while parts are seen as less attractive. This mindset has deep historical roots and still persists today." Additionally, the rapid advancement of the global automotive industry has widened the gap between China and international standards. "The parts industry is falling further behind, especially in high-end markets," he added.
While it's true that the domestic auto parts industry has made significant progress in recent years, Chen emphasized that this hasn't changed the fundamental issue of lagging behind. He said: "Some companies have made remarkable progress in globalization, but this doesn't address the core problem. We need to focus on developing high-end products, enhancing innovation, and strengthening R&D capabilities. Otherwise, China’s auto parts industry will continue to lose strength and face a decline in international competitiveness."
Chen also highlighted another key challenge: the lack of integration between the automotive and information industries. "From a global perspective, information technology has deeply penetrated the automotive sector, transforming the entire supply chain. However, China is still far behind in this area," he noted.
He mentioned that the government has taken steps to promote this integration, organizing discussions with experts from various fields. Yet, he stressed that no substantial results have emerged so far. "The integration isn’t just about who leads, but about the mutual exchange of digital thinking. Unfortunately, there are still ideological barriers preventing real progress," he said.
To illustrate the gap, Chen cited examples like the microcontroller units (MCUs) used in Korean cars, which are mostly supplied by Samsung. He pointed out that China imports all MCUs for its vehicles, and due to their increasing complexity, Chinese manufacturers must rely on foreign partners for design collaboration. "If our output is low, some multinational companies raise prices, which hinders innovation and poses a serious threat to local companies," he warned.
Moreover, many basic electronic components, such as transistors used in generators, are still imported. "This reliance on foreign technology limits our ability to innovate and develop advanced automotive electronics," Chen said.
Although there are some established Chinese companies producing automotive electronics, most focus on general components rather than control systems. "Vehicle-mounted electronic control products are crucial for improving performance, but development is slow due to technical challenges," he explained. While China can now produce ABS systems for domestic brands, the development of more advanced technologies like ESP is still in progress and may take years.
In the fast-paced digital era, innovation is essential for maintaining competitiveness. Chen noted that many domestic companies haven’t kept up. For example, third-generation common-rail technology uses piezoelectric ceramics, which some factories are trying to produce, but they still have to import due to performance issues. "International research is moving toward nano-scale materials, which could significantly reduce size and improve efficiency. Whether Chinese companies can catch up remains uncertain," he said.
Looking ahead, Chen expressed concern that China lags significantly in high-end products and is even behind in emerging technologies. He mentioned that companies like Delphi and Siemens have already developed electromagnetic rheological drive systems that replace traditional steering mechanisms. "This technology is still in academic discussions in China, and the lack of funding and support is slowing down progress," he added.
While some companies are investing in R&D equipment and software, Chen pointed out that there is still a big gap in computer application and engineering analysis capabilities. "These factors greatly affect product development success rates, design cycles, database construction, and cost reduction," he concluded.
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