Corporate Restructuring
The world’s major automobile companies have reformed their supply systems and implemented global production and global procurement, that is, from purchasing from multiple auto parts manufacturers to purchasing from a few system suppliers; from single auto parts procurement to module procurement; from implementing domestic procurement Transform into global sourcing. The changes in the procurement system of vehicle manufacturers require auto parts manufacturers to continuously adapt to them. Not only do they require auto parts manufacturers to expand their strengths, improve product development capabilities, and achieve system development and system supply, but also require them to shorten development Cycle, provide high-quality and cheap products. This change has promoted the process of mergers and acquisitions and restructuring of the auto parts industry worldwide.

Chain development
Compared with previous years, the market concentration is higher. OEMs are becoming more modularized and systematic procurement, and the collaboration between suppliers has become closer. As a result, the global auto parts supplier system has gradually evolved to a pagoda structure. Tier 1 manufacturers are responsible for the management of the entire supply chain, making the cooperation between supply chains more standardized. Companies that develop like this are top-notch in their respective markets. They occupy 80% of the market and dominate the high-end market. The boss of a parts company said: “With the rapid growth of vehicle production and sales, parts companies have encountered a golden opportunity.

skill improved
Major auto parts manufacturers have applied aerospace, aviation and electronics technologies to auto parts and assemblies. Safety technology, electronic technology, energy-saving technology and environmental protection technology have been widely used in automobiles. In particular, new technologies represented by electronic information technology are not only widely used in automotive products, but also extend to various aspects such as development and design, trial production, production and management; not only applied to individual auto parts, but also applied System assembly.

The establishment of R&D centers by parts and components companies can "quickly" meet the urgent needs of the market and develop products quickly; they can be "accurate", close to the market, and achieve "localization"; they can be "new" and apply more new technologies to production Among them, the quality is guaranteed and the cost is reduced. In fact, for some new technologies, parts and components companies are leading OEMs.

Globalization
In order to reduce costs and occupy the market, many multinational auto parts companies are developing internationally. European auto parts manufacturers have invested overseas for international production; North American auto parts manufacturers have invested in Europe and want to expand the Eastern European market; Japanese auto companies have also continued to establish their own branch production organizations around the world. The emerging Asian market is the focus of competition among major auto parts multinational companies, and China is even more competitive. Almost all of the world's top 20 famous auto parts companies have set up offices or investment holding institutions in Beijing or Shanghai, such as Delphi, Trina, Bosch, etc. In a certain period of time, Delphi has established 15 joint ventures in China to produce more than 100 kinds of auto parts and systems, becoming the most powerful auto parts group in the Chinese market in a certain period of time.
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