Investment in China over 500 million U.S. dollars of Delphi, more than 10 years in China have completed the eight economic entities, and with China's cooperation partners, only half of the establishment. And from the Delphi is a global information, "Delphi Automotive Systems in 43 countries worldwide with at least 198 wholly-owned factories, 41 plants and 31 joint-venture technology center, and so on."



Foreign parts giant Delphi is only a microcosm in China. To Caterpillar, Bosch, BorgWarner as the representative of a group of giant investment projects in China, are happy to take the form of wholly-owned or controlled. As a wholly-owned transnational giant, and holding of increased foreign investment in wholly-owned holding Lan through the industrial chain of more profit at the same time, the own-brand components on the increasing pressure.



China's 2001 accession to the WTO, the auto parts market fully liberalized, foreign investors to enter China's auto market of a major change of strategy. In China for production of auto parts joint ventures or wholly foreign-owned enterprises reached nearly 1,200, they use China's WTO commitments, the implementation of capital controls, monopolies in the market, technology blockade and other measures.



According to statistics, foreign investment in Chinese auto parts market has accounted for more than 60 percent of the share. Car parts and components in the industry, the greater the share, some experts have estimated that more than 80 percent. Data shows that in the high-tech and core technology, such as automotive electronics and engine parts, and other key areas, foreign control of the market share of 90 percent. Bosch, Denso, Delphi, Hyundai Mobis and other multinational companies in China's auto parts market play an important role.



Squeeze in foreign investment, domestic auto parts enterprises survive getting smaller and smaller. Since China's sedan car is a lot of products imported products, followed by the foreign parts suppliers with matching, local auto parts enterprises difficult to obtain development and improve opportunities for joint ventures are being squeezed out brand vehicle matching system, Only to low-level products to market and social development, the result is in the industry was increasingly marginalized.



Last year, exports of auto parts from nearly 30 billion U.S. dollars, accounting for China's auto export 72 percent, China's auto parts business of survival seems to be pretty good state. But careful analysis we will find that we are reduced to minor supporting role, and its products is basically a labor-intensive products Zhongdi Dang.



Once this pattern continues, independent domestic auto parts enterprises will face even greater potential crisis, or even survival difficult problems encountered. In other words, China's independent auto parts enterprises existing 40 per cent of the market share will be challenged.



March 10 this year, PSA Peugeot Citroen group (PSA) 2010, in the amount of procurement will reach 600 million euros, or 6.5 billion yuan. The industry said that this huge "cake" will promote investment in parts of Hubei Province continued to heat up, comprehensively enhance the supply chain core competitiveness. However, some analysts believe that although China with the surge in vehicle sales and "a vehicle characteristics of the auto parts import management approach" the implementation of the components of transnational corporations is an unprecedented increase the demand for localization, but most tend to Selection of its foreign investment or controlling the parts supplier, which allow local vendors missed a golden opportunity.