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In the "Auto Industry Development Policy," Chapter 8 focuses on the development of auto parts and related industries, covering three key areas: the future direction for auto parts companies, macro-level management and investment strategies, and the growth of supporting industries. Recently, reporters interviewed industry experts to gain insights into how these aspects are being implemented.
Article 30 of the policy emphasizes that auto parts companies should align with global industry trends and actively participate in product development projects led by original equipment manufacturers (OEMs). In key auto parts sectors, companies are encouraged to develop system-level capabilities, while in general parts areas, they should build advanced R&D and manufacturing capacities to meet both domestic and international market demands, aiming to join global procurement systems.
Experts noted that while the policy lacks specific quantitative targets for the parts sector, it clearly outlines a strategic direction. The emphasis on OEM collaboration suggests a shift toward technology-driven partnerships. As China’s parts companies have built strong manufacturing and management foundations over two decades, enhancing R&D capabilities is now crucial for future competitiveness.
Currently, about 60% of the cost for mainframe plants comes from parts procurement, making supplier involvement in development an inevitable trend. The new import regulations on auto parts have also pushed joint-venture brands to localize components, creating opportunities for domestic suppliers. Some models developed by Shanghai GM, for example, show openness in sourcing, allowing parts companies to engage more deeply in vehicle development.
Despite progress, many small and medium-sized parts firms still lack the necessary R&D capabilities. With over 90% of the 30,000+ companies failing to meet standards, improving R&D and operational efficiency is essential for survival and growth. Mergers, technological upgrades, and better access to capital will play a key role in this transformation.
Article 31 introduces targeted development plans for auto parts, offering guidance and support to enhance their competitiveness. The government encourages professionalization, mass production, and modular supply chains. Companies capable of serving multiple OEMs and entering global markets receive priority in technology imports, financing, and mergers.
Experts highlighted that these policies reinforce existing efforts, especially in high-tech areas like airbags and ABS, where China has made notable progress. While the policy’s practical impact may not be immediate, its long-term influence on shaping the industry’s direction is significant.
Article 32 addresses the development of related industries such as metallurgy, petrochemicals, and electronics, emphasizing the need for improved quality and competitiveness. It calls for stronger steel supply, advanced mold design, and higher-quality oil products to support the automotive sector.
The rubber industry, however, still lags, particularly in specialized fields like seals. Meanwhile, oil quality development remains uneven, with ongoing debates on whether to follow international standards or focus on diesel alternatives.
Experts observed that while some policy provisions may not directly impact the parts sector, broader industry changes—like vehicle R&D and intellectual property rights—will inevitably affect component companies. For instance, the import regulation on critical parts has accelerated localization, enabling new investments and technology transfers.
In exports, while entire vehicles face certification challenges, parts often encounter fewer barriers, making them a promising area for growth with proper support. Overall, the policy sets a clear vision, guiding the industry toward greater innovation, integration, and global competitiveness.