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Future Development Trends of the Automotive Parts Industry

1. Global resource allocation and component procurement
With the increasing maturity of the global resource allocation model in the automotive industry and the intensification of competition in the industry, international automobile manufacturers have gradually focused on the research and development of new vehicle models and the launch of new models in the market, reducing the rate of self production of automotive parts. Instead, they have allocated resources globally, established factories and laid out in emerging automotive markets such as China, India, and Mexico, and purchased locally competitive automotive parts products. Global procurement has become an important development trend in the automotive industry.
In this trend, local component manufacturers have gradually entered the component matching system of international vehicle manufacturers with cost advantages and service responsiveness. Major international component giants have also gradually extended their production and research and development bases to various corners of the world’s major automotive markets. With the technological progress and experience accumulation of automotive parts enterprises in emerging market countries, the global procurement trend of automobile manufacturers will be further strengthened.
2. Production and procurement tend towards modularization
In recent years, major vehicle manufacturers around the world have reformed their procurement and supply models, shifting from scattered procurement from multiple automotive parts suppliers to modular procurement from a few suppliers. In this mode, component companies integrate components of the same functional system or region into a modular component for standardized design and production through new designs and processes, and provide component matching for the vehicle manufacturer on a modular basis. This facilitates the assembly of different vehicle models by the vehicle manufacturer, which is conducive to shortening the production cycle of automobiles, improving the universality of components and the efficiency of vehicle assembly, reducing weight and fuel consumption.
With the transformation of the procurement side of vehicle manufacturers, component suppliers need to continuously enhance their technological innovation capabilities, cultivate leading product design and development capabilities, and realize a part of the product development and component assembly work that was originally undertaken by vehicle manufacturers, and participate more deeply and earlier in the new vehicles of vehicle manufacturers. During the development process. Modular supply enables component manufacturers to no longer rely on individual vehicle manufacturers, and to have closer and more stable cooperative relationships with vehicle manufacturers. Automotive component companies are moving towards an independent and large-scale development path.


Post time: Aug-27-2024