In the Wuxi National Hi-tech Development Zone, the world’s second-largest automotive equipment supplier, Robert Bosch GmbH and Wuxi Weifu Co., Ltd. signed the largest joint venture agreement in Wuxi. This total investment of 600 million euros is equivalent to Bosch’s investment in China over the years. The strategic position of China's auto parts market in Bosch is evident.
Bosch Wuxi Enclave 600 acres
According to insiders from the Wuxi New District, Bosch and Wuxi Weifu signed a land agreement for the project in Wuxi New District, which covers an area of ​​more than 600 acres. Now the investment parties are making further discussions on specific investment plans. According to reports, the project will build 560,000 sets of electronically controlled VE pump production lines, 700,000 sets of high pressure common rails and electronically controlled fuel injector production lines and other production bases with advanced international standards, and will establish a technology center with independent research and development capabilities. The goal is to build Build China's largest electronically controlled fuel injection system production base with annual sales revenue of 1 billion euros. After the completion of the project, Wuxi will become the only production base of Bosch's electronically controlled fuel system products in China, and it will also be Bosch's global electronically controlled fuel system product production base, which can meet the fuel injection system products of Europe III or above.
"Bosch's huge investment, first because of the rapid increase in China's auto production, and Bosch's consideration of China's production cost factors, allows this base to export some of its products."
According to Qiu Fei from Shanghai Branch of Bosch (China) Investment Co., Ltd., the investment and construction of the factory in Wuxi is the application of Bosch's latest technology. Bosch occupies more than 50% of the domestic market share in diesel injection technology. Now almost every modern light diesel vehicle in China is integrated with Bosch diesel injection technology.
At the same time, Bosch's other automotive technologies are also gaining favorable development in China. At this year's Shanghai International Auto Show, Bao Shanren, then president of Bosch (China) Investment Co., Ltd., revealed that in 2002 Bosch's growth rate in China reached 30%, reaching nearly 1 billion euros. Bosch China Bosch Trading (Shanghai) Co., Ltd., Bosch Automotive Components (Suzhou) Co., Ltd., Wuxi Euro-Asia Diesel Injection Co., Ltd., Nanjing Huade Spark Plug Co., Ltd. and United Automotive Electronics Co., Ltd. all occupy market leading positions in their respective fields. status.
United Automotive Electronics Co., Ltd. is a joint venture between Bosch and China United Automotive Electronics Co., Ltd. The latter is jointly funded by 10 domestic companies such as SAIC Motor, FAW Group, Dongfeng Automobile, Beijing Automotive Group and Wuxi Weifu Co., Ltd. With a total investment of 2.668 billion yuan, of which fixed assets investment was 1.941 billion yuan, it was one of the largest auto parts manufacturers in China at the time. It mainly produces and sells gasoline engine management systems that precisely control the injection and ignition of gasoline engines. There are production bases in Shanghai, Wuxi and Xi'an.
Through investment cooperation with OEMs, Bosch can smoothly enter the procurement scope of vehicle companies. But what Bosch is most concerned about in the Chinese market is the movement in the automotive aftermarket.
Not long ago, 34 and 15 Bosch auto repair stations were launched in Beijing and Shanghai respectively. So far, Bosch has built more than 180 professional service stations for gasoline engines and 80 professional service stations for diesel engines in China. It is reported that the company plans to build 300 Bosch gasoline engine repair stations and 100 diesel repair stations by the end of this year. By 2010, this figure will reach 1,000.
“This practice of Bosch is indeed very powerful. Under the circumstances that China’s auto parts market is relatively chaotic and relatively small, Bosch has occupied sales of aftermarket accessories on some regional markets with his technology, brand and service. This market cake is very Great.†Yang Ziqi, Manager of Auto Parts Strategic Management Department of Delong International Strategic Investment Co., Ltd., expressed his emotion.
Foreign capital auto giants frequently increase their capital
In recent years, the industrial added value of China's auto parts and accessories manufacturing industry has grown faster than that of GDP, and the scale of the auto parts market has continued to expand. According to statistics, the market demand in 2002 was 189.5 billion yuan.
However, compared with the entire vehicle industry, China's auto parts production is characterized by low technical level and small scale. According to an authoritative survey, at present, nearly 70% of China's spare parts suppliers are relatively lacking or obviously lack international competitiveness, especially some high-tech key technologies such as airbags, electronic fuel injection systems, ABS, and other mechatronic products. In its infancy. The auto parts industry has a low degree of concentration, a high degree of regional concentration, and a high degree of openness, which provide opportunities for foreign giants to enter the Chinese auto parts market.
According to analysis by industry insiders, in order to meet the country’s automotive development needs in the new situation, the country expects to cultivate 5 to 10 large-scale auto parts parts companies that have become internationally competitive before 2005, with the possession of key components in the top three domestic markets. The rate reached 70%, and the export value of auto parts accounted for 20% of its total sales.
This kind of market conditions all stimulate the desire of the world's auto giants to invest in China.
The total investment in China has exceeded 400 million U.S. dollars. Delphi Group, the world's largest supplier of automotive parts and systems, announced in July that it will invest 12 million U.S. dollars in the production of the most advanced products in the United States and Europe.
The world’s largest tire and rubber products manufacturer, Bridgestone, recently invested US$99 million in Wuxi to establish its first wholly-owned subsidiary in China—Bridgestone (Wuxi) Tire Co., Ltd. After the official production in September next year, it will form an annual production capacity of 2.74 million tires. Bridgestone even announced that it plans to occupy 20% of the Chinese market after three years of passenger car tires and truck tires.
The latest news is that another auto parts giant Visteon will jointly cooperate with Yanfeng Visteon Automotive Trim Systems (Shanghai) Co., Ltd. and Dongfeng Electronic Technology Co., Ltd.'s Dongfeng Electronics Co., Ltd. to jointly invest US$30 million to establish Dongfeng Visteon Holdings Co., Ltd. in Wuhan.
Batumberg, chairman and chief executive officer of Delphi Automotive Systems, once said: "Almost all vehicle companies in the world have come to China to establish a production base, so Delphi will no doubt use this as their own 'main battlefield'."
It seems that following the strategic shift of multinational auto companies, competing for the Chinese market has become an important strategic deployment of these component giants.