The Auto Parts Industry Competitive Analysis

According to economics and management theories, this paper forms an analysis framework based on the exposition of the definition of competitiveness and theoretical source of the historical evolution.From the auto parts industry in the situation, we choose the level of industrial competitiveness as a key to research and form the object of research and theoretical framework of competitiveness of industries. This paper studies China's automotive parts industry in a multi-level study of competitiveness in order to exploring China's auto parts industry to achieve the competitive edge in the process, and to draw some basic conclusions. China's auto parts industry in comparison with foreign countries, both output, investment, technology, production modes of supply and supporting relations, are lagging far behind Europe and the United States. The whole industry's comprehensive competitiveness significantly weaker than those of Europe and the United States, there is a big gap. This paper is undergoing a detailed analysis to achieve three levels of China's auto parts industry based on the Industry Competitiveness Framework. From the aspect of competitive environment, our auto parts industry has strong potential to compete. Our government has a clear industry positioning and strong policy support for vehicles and parts industry. Domestic macroeconomic stability and economic growth potential for auto and auto parts industries provide a good environment for competition. A huge domestic market and the industry value chain of auto parts is also the basis for industrial development. Product life cycles shorten and the introduction of new technologies and applications in automotive components promote industrial development. Domestic auto parts enterprises should enhance corporate culture, take full advantage of a favorable environment and social resources and improve product development and innovation capabilities; from the aspect of competitive assets, the degree of industrial concentration of China's auto parts industry is on the rise. However, industry profitability is not significantly increased. Foreign investment enterprises which have distinct competitive advantages share a large part of China's market. Domestic auto parts industry in order to sharpen their competitive edge, necessarily need to be addressed with foreign-invested enterprises in competition and cooperation, and actively adjusting product structure, Organizational structure and industrial structure, actively participate in international competition in the international and domestic markets; From the aspect of competitive process, auto parts industries in the competitive process achieve chain value between upstream industries and downstream industries, auto parts industries should handle the pressure of raw materials industries and automotive industry, adopt vigorously advanced development and production methods, and play to their own advantages.