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    our news

    China and Russia have broad prospects for auto parts trade

         In recent years, Sino-Russian economic and trade relations have developed rapidly, the Sino-Russian trade for many years maintained a rapid growth. Auto-related industries and bilateral economic and trade relations is the focus of the new, 2007, China's exports of vehicles and spare parts to Russia 1.9 billion U.S. dollars, an increase of 224 percent. Of which export 107,000 cars, up 181 percent; exports of auto parts more than 150 million U.S. dollars, an increase of 30 percent. Russian auto market has become China's auto parts exports of cars and the most concentrated, the most important market, the Chinese and Russian auto and parts trade prospects are bright.

         Russian market has great potential

         According to the recently held at the Harbin section 63 of the National Auto Parts Trade Fair on that, in 2007 the Russian automotive materials, components and spare parts market amounted to 32.7 billion U.S. dollars. The primary market a total of about 7.9 billion U.S. dollars (24 per cent of the total), the secondary market a total of about 24.8 billion U.S. dollars (76%). In the secondary market, imported vehicle parts and components accounted for 42% (10.5 billion U.S. dollars), while in the primary market, the Russian manufacturers in parts of the market share of less than one-third, most parts are Foreign imports and the assembly joint assembly.

         Statistical Analysis of the Russian car company experts estimate that the auto parts market in the initial growth rate of 20-25 percent, this growth rate, to 2009, the market will total nearly 10 billion U.S. dollars, 2010 will be close to 15 billion U.S. dollars. And on the current China-made parts and components of the Russian view of the trend, at least half the share of foreign enterprises there.

         China's industrial advantages unique

         According to China's auto industry sales of accessories, general manager of Wang Du Yang said the Chinese auto parts in China-Russia trade has a unique advantage. First of all, parts of China continued to enhance the competitiveness of industries. In recent years, the auto industry competitive in a rapidly upgrading, product competitiveness improved markedly. Second, China's auto parts product's competitive edge at present are mainly embodied in the low-cost, low price advantage, and the fast-growing market is price sensitive areas, inexpensive products on the market have attracted a lot of Force. At the same time, China's vehicle exports continued to grow rapidly, driven parts export growth. Parts package of direct export growth brought about parts exports increased. China's car market for the sale and export of parts and components has brought about opportunities. In addition, the Russian economy has become increasingly active, and residents pay for the spending power of China will increase exports to Russia injected new vitality. In transport, the exclusive advantage of China, Russia and neighboring China, or shipping by rail and other transport.

         Six enterprises are facing problems

         Although the Sino-Russian trade and auto parts there are broad prospects for cooperation, but we must realize that China's auto parts enterprises in the development process and the existing problems should not be overlooked. China Automotive Parts Industry (Group) Company Tian Ya-mei, China's auto parts enterprises are facing major problems from the six major areas, these problems to be caused auto parts enterprises attach great importance:

         First, heavy vehicle, the concept of serious light components; production is small, most enterprises only parts of a vehicle for supporting enterprises, lack of economies of scale, high product cost, poor efficiency.

         Second, the industrial structure not quite reasonable. Production is small, homogeneous phenomenon of serious, high-energy supplies to the products, and many enterprises casting, forging, stamping, machine, heat treatment have everything, but the backward technology and equipment, and low efficiency.

         Third, the low efficiency of organizations. Manufacturers in the disorderly competition between the basic state. China's auto parts business labor productivity is only one eighth of Japanese parts and components enterprises; whether purchase of raw materials, work-in-process control, or the sale of products, circulation and services are used in traditional ways and means, the majority of Enterprise information is a serious lag, a large-scale enterprises do not have the cost advantage, lack of market competitiveness.

      
         40, R & D is poor. According to foreign enterprises in general statistics, the average investment in the industrial parts and components for the car companies should be 1.2 to 1.5 times, while the current situation in China is less than 0.3, significantly lower than the international average level in developed countries, the auto parts enterprises R & D capabilities have been ahead of the vehicle enterprises, the development of a new car, 70 percent of the intellectual property of auto parts enterprises, and parts of the vast majority of enterprises do not have product development capabilities, product development mainly depend on Zhuji Chang, difficult to adapt to the whole Vehicle replacement requirements.

         5, the uneven quality of products. And technology, research and development capabilities, the quality of personnel and production equipment, and other various factors have relations.

         6, redundant construction in a serious and disorderly competition will intensify. Logistics system is not perfect, high transport costs, long cycle, and so on.

         A number of positive measures to cope with

         At present, China has seen a number of auto parts enterprises of the Russian rich market resources, parts and components exports by the high-speed growth. Experts suggested, in the face of such a vast Russia, both familiar and unfamiliar market, enterprises will inevitably have to face many challenges. In response, a full understanding of a variety of measures to deal with.

         First of all, in business strategy, we must have a clear domestic exports of automobiles and parts of the guiding ideology. Can not be exported only as an expedient measure, to their enterprises as the long-term development strategy.

         Secondly, the product strategy, we should abandon low-end, low-price strategy. In accordance with the price to strike a balance between. Establish and promote a brand image, improving product competitiveness.

         Third, the quality of products, it is necessary to strictly guard the pass. The quality of automotive components in particular the reliability of decisions of domestic exports vitality is an important factor, low-end products can not be low-quality products. Automotive components is related to the life and safety of consumers, its very strict quality requirements, particularly in the Russian car production itself is a big country with a more complete technical standards and regulations policy, the Chinese auto parts to enter the Russian market should be more strict quality control , To eliminate the concerns of the minds of Russian consumers. The importing country must be on the market access conditions, technical regulations, standards and conformity assessment procedures to prevent indiscriminate access, to avoid unnecessary losses.

         At the same time, the need to avoid domestic counterparts in the international market for cut-throat competition. Homogenization of products, the same target market of very easily lead to vicious competition. It is necessary to strengthen coordination within the industry self-regulation and guidance, to avoid vicious competition and avoid the occurrence of self-disorderly competition.


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