China's Auto Parts Industry Competitiveness Study

Industry for producing the automobile parts plays an important role in the national economy. The automotive domain including the entire car industry and the automobile parts industry is the first and large-scale industry. Moreover, the automobile parts industry is the base and the important component for the development of the automotive industry. As the leading edge of the whole industrial chain or the value chain, the quality of automobile parts industry will affect the development level of the automotive industry for a country. The theme of the study is the competitiveness problem of automobile parts industry in our country, surrounding which the paper will analyze the forming mechanism and current situation of competitiveness of the automobile parts industry in our country, and discuss the concrete countermeasure for improve the industry competitiveness of our automobile parts.Firstly, the paper elaborates the study background, study significance of the paper and the current correlative situation in home and abroad, fixing on the frame and innovation of the paper.Secondly, the paper discusses the correlative conception and theory foundation of industry competitiveness. Industry is the production of social division of work, and the inevitable result of the constant development of the social productivity. Industry is the congregation of enterprise economic activity of the same property. Competitiveness is the representation of competitive superiority, which is the capacity represented during the process when the competitive parties are scrambling competitive objects. Industry competitiveness is the capacity represented during the process when an enterprise of a country or a region is competing with its opponents. The process is usually represented according to scramble prior production condition and sales condition, offering the goods that are in accordance with the requirement of the consumers and buyers. The direct representation is market share and profit level. The industry lifecycle theory, the comparative priority theory, the latter priority theory, the competitiveness priority theory and value chain theory offers the theory foundation for the study of the paper.Thirdly, according to the study of the classical examples of industry competitiveness as Porter and Porter-Clony, ect., the paper fixes on the analytic frame of industry competitiveness which is based on the principal element and object element of the industry competitiveness. Combined with the industrial character of automobile parts industry, the paper systematically analyzes several elements which influence the competitiveness of automobile parts industry. It gains the recognition of the forming mechanism of automobile parts industry competitiveness, and the general rule of forming automobile parts industry competitiveness. The industry character of the automobile parts industry mainly represents on capital character, products character, organization structure, industry development character, etc. Automobile parts industry is a kind of global industry, which is highly integrated in industry, and strongly connected, with high technique content and added value, high capital intensity, high bulwark to enter and exit, possessing scale economic effect. Automobile parts industry competitiveness is formed under the influence among the principal influencing elements such as the government, industry organize and enterprise, and under the situation of recognizing market requirement accurately and collocating industry resource effectively. The forming process of the automobile parts industry competitiveness is the process that the resource is constantly improved , and the market requirement is constantly developed and satisfied.Fourthly, the paper studies the evaluation index system of the automobile parts industry competitiveness. It is to be evaluated by four sides as core competitiveness, foundation competitiveness, market competitiveness and environment competitiveness. Core competitiveness is a kind of particular skill and technique that can ensure the enterprises bring special profits for their customers. Core competitiveness is represented not only on technique, but also on production management, sales and finance. Foundation competitiveness is the competitiveness that is the foundation and support of constantly development. Market competitiveness is the marketable capacity of the enterprise, which reflects the achieving degree of the enterprise capacity on the market. Environment competitiveness is the direction and drive thatcompetitiveness can develop effectively.Fifthly, it analyzes historical four stages,current situation of, opportunities and challenges to China automobile parts industry, based on analysis on the whole industry, it also analyzes and comments on competitiveness of this industry. This paper states that our automobile parts industry is still behindhand, with low efficiency, although there are some comparative advantages; there are also big gap in self innovation abilities which forms core competitiveness of this industry, and investment in innovation, between China and foreign advanced field.Meanwhile,on competition environment, the government also needs to alter and complete their functions, to create a better environment for this industry. Though still some gap from abroad, current auto parts industry in China shows favorable developing prospect. Prosperous macro economy and strong domestic demands provide a sound basis for auto and auto parts industry. Technical interdisciplinary is one feature of auto and auto parts, and we already had certain technologies, capital and talents, if government formulates proper policies, and companies insist on self innovation, in the near future, auto parts industry will witness notable strengthening through capitalization more effective usage of current resources.Sixthly, the paper puts forward suggestion and action that can be adopted to improve competitiveness of automobile parts industry in China. On government regulations, completing industrial policy and market mechanism, maintaining and protecting current industry circumferences, establishing regional financing system, emphasizing on training of human resources,etc. On industrial structure,centralising industry to realize scale economy, strengthening effective competition,encouraging group development,etc. On corporation stragy,promoting self innovation, encouraging technical innovation, enhancing know-how management to focus core competitiveness, and so on.