Application areas


Yuneng Precision Machinery Technology

The development strategy of powder metallurgy automotive parts in our country.


Release time:

2019-11-20

With the deepening of globalization strategies, more and more multinational component companies are rapidly shifting their manufacturing bases to China. Additionally, a significant number of companies have established R&D centers in China or consider China as one of their most important global markets.

The development strategy of powder metallurgy automotive parts in our country.
With the deepening of globalization strategies, more and more multinational component companies are rapidly shifting their manufacturing bases to China, and many companies have also established R&D centers in China.
Some people say that at the 11th Shanghai International Automobile Exhibition, what some industry insiders focused on was not the scale of the exhibiting companies or the level of the exhibited products, but the next steps of multinational companies' strategies in China.
This is not an exaggeration. It can be said that every major automobile exhibition is like a grand parade, where multinational companies not only showcase their products and technologies but also inadvertently reveal their future development strategies. As the trend of globalization becomes more apparent, the strategies adopted by multinational component companies in China often determine the next steps and even the future fate of many domestic component enterprises. Studying the China strategies of multinational companies is essentially studying the development prospects of local enterprises.
A sense of restlessness shrouds the domestic automobile industry.
So, does the aggressive momentum of multinational companies prompt domestic component enterprises to awaken? How many companies have taken practical and effective countermeasures upon realizing the threat? After years of development, how many component companies can now compete on equal footing with multinational companies? When I asked many experts and executives about these questions, the responses were mostly head shakes and sighs. Clearly, relying solely on studying others' strategies cannot replace one's own development. If domestic enterprises cannot formulate suitable development strategies based on specific circumstances in the face of the strong competitiveness of multinational companies, or if they only see a little immediate benefit without a long-term strategic vision, the result can only be helplessness, leading to eventual elimination by multinational companies.
"The Chinese automobile industry is neither large nor strong, and is still in a stage of replacing imports under certain protective conditions. Many issues concerning the survival of the automobile industry have yet to be addressed, and the prevailing restlessness hinders the healthy growth of the automobile industry," said Shao Qihui, a member of the National Committee of the Chinese People's Political Consultative Conference and former deputy director of the National Machinery Bureau, in a serious speech.
In recent years, the rapid development of the domestic automobile market has made it difficult for some people to see the future direction, leading to an increasing sense of restlessness and exaggeration, even spreading among component enterprises.
Under the influence of this restless mentality, many enterprises are not focusing on solidly running their businesses and developing the market, nor are they working hard to strengthen R&D capabilities and cultivate talent. Instead, they are seeking immediate gains, taking short-term actions to obtain a little market benefit. As a result, some have harshly asserted that most local component enterprises lack systematic development strategies and are merely taking one step at a time until they reach a dead end.
Thus, the following phenomena are commonly seen among component enterprises: either disregarding economic laws and their own conditions to rush into market hot products; or easily allowing foreign parties to hold controlling stakes during joint ventures for the sake of temporarily introducing technology; or actively giving up valuable market and talent resources to achieve the goal of "exchanging market for technology." Some state-owned enterprises, after years of accumulation and development, have strong technical and talent capabilities, ranking among the top in the industry. However, when entering into joint ventures with foreign companies, they are willing to transfer all personnel from their entire technology center, forcing themselves to recruit again for the parts that are not joint ventures.
Multinational giants are pressing forward with urgency.
While some domestic component enterprises are engaging in these short-sighted activities, multinational companies are not letting up at all. They are seizing the opportunity to accelerate their development in China, striving to attract talent and gain market share.
At this Shanghai Auto Show, Delphi, which had not appeared at an auto show for several years, suddenly organized a strong exhibition team. The head of Delphi China explained that the lack of grand publicity in recent years does not mean that the company has been idle; they have actually been quietly recruiting talent to prepare for the establishment of their soon-to-be R&D center. This participation in the auto show is also to let more people know about the Delphi brand, so that they are willing to join the company.
 

recommend application