Since its development, China's matching market has become one of the most open markets in the world. Compared with Japan and South Korea's supporting markets, the difficulty of entering the Chinese matching market can be described as a world of difference. First-tier suppliers of parts and components from the European, American, Japanese, and Korean industries have the opportunity to enter China's auto parts procurement system, which is not easily accessible in other mature markets. Some American and European suppliers have fully enjoyed China's customer diversification results. China's domestic parts suppliers have even had the opportunity to become Japanese and Korean suppliers. The formation of this open supporting market has certain historical reasons, mainly reflected in the following three aspects: 1. China’s automobile enterprises mostly rely on joint ventures. Therefore, on the one hand, the Chinese side can partially undermine the authority of the foreign party to completely dominate the procurement. On the other hand, the Chinese subsidiary or joint venture component company has more due to the relationship between assets. Great opportunity to enter the joint venture OEM. 2. China has the requirement of localization rate, and historically, a foreign-funded parts and components company with close relationship with a foreign-owned automobile plant did not quickly follow up the investment of the entire vehicle factory in China, which gave Chinese and other early investments in China. Foreign parts and components company opportunities; 3. China's domestic OEMs have historically lacked a complete supply system and need support from foreign suppliers of parts and components for high-tech assembly. Therefore, for foreign-owned parts and components companies, as long as the cost is acceptable. Actually, it is a welcome attitude towards independent brands. More and more foreign-funded parts and components companies are investing in China, and domestic automakers have the opportunity to re-evaluate their core strategic supplier systems. This means that in the next five to ten years, although China's supporting market will still be the most open in the world, new entrants will find it increasingly difficult to enter non-traditional supply systems. The core suppliers of each OEM will be more stable. Therefore, in the next few years, it will be an indispensable opportunity for local auto parts companies with high-tech products to enter the domestic supporting system. Once they enter, they will be further promoted in terms of technology and management, and are expected to enter the international market and become global enterprise. If you do not enter the supporting market, you will be able to overcome this gap in the next few decades. The above conclusions are mainly for Tier 1 suppliers. For Tier 2 suppliers and Tier 3 suppliers, with the increase of foreign investment from China as a result of this positioning, the status of Tier 1 suppliers in the melee is now being staged 10 years ago. , Second and third-tier suppliers need to grasp the opportunities of the next decade and strive to gain a favorable position in the melee.
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