Automotive Industry Summary 2021 Supply Chain

The development of the automobile industry is inseparable from technology and supply chain. As the marketization of traditional fuel vehicles enters the blue ocean, the key point for all manufacturers participating in market competition is the tenacity of the supply chain. , especially the core shortage factor brought about by the post-epidemic era, will face greater difficulties for electrified and intelligent new energy vehicles.

The key is that new energy vehicles, especially new car manufacturers, still have not established a stable supply chain system, especially the supply system of electronic materials, on the order of magnitude of market share. The key to the automotive industry is to reduce costs by volume. For new car manufacturers that are moving toward profitability, expensive and unprofitable suppliers are actually not a very optimistic situation.

As 2021 passes, major OEMs are announcing their sales results. For the supply chain, the degree of global competition is intensifying. Data shows that among the top 100 global auto parts suppliers, there are 22 from Japan, 22 from the United States, 18 from Germany, 9 from South Korea, 8 from China, 4 from Canada, 4 from France, 3 from Spain, 2 from Switzerland, and the United Kingdom. 2 companies, one each in Ireland, Brazil, Mexico, Sweden, Italy and India. Among them, Japan accounts for 22%, the United States accounts for 22%, Germany accounts for 18%, South Korea 9%, China 8%, France 4%, Canada 4%, and Spain 3%.

Judging from the rankings, they are 1 Bosch of Germany, 2 Denso of Japan, 3 ZF of Germany, 4 Magna International of Canada, 5 Aisin Seiki of Japan, 6 Continental Germany, and 7 South Korea. Hyundai Mobis, 8 Faurecia of France, 9 Lear of the United States, 10 Valeo of France, 11 Yazaki of Japan, 12 Sumitomo Electric of Japan, 13 BASF of Germany, 14 Adient of the United States, 15 Tenneco of the United States, 16 Panasonic Motors of Japan system, 17 China Yanfeng, 18 Italy Marelli, 19 Ireland Aptiv, 20 Japan JTEKT.

China’s top 100 suppliers are mainly Yanfeng 17, Beijing Hainachuan 42, CITIC Dicastal 58, Johnson Electric 74, Minshi Group 79, Wuling Industry 81, Anhui Zhongding 87, Desay SV97, the scale of Chinese suppliers is not proportional to the Chinese automobile sales market, and there is a lack of world-class supplier groups and brands, which is basically consistent with the development status of China's independent automobile industry.

From a global perspective, the top 20 suppliers are basically deeply bound to the world's automotive groups and brands. Their core technologies and stable supply have become more reliable for automobile OEMs. Partners, including world-class manufacturers and brands such as Volkswagen of Germany and Toyota of Japan, and German suppliers and Japanese suppliers developing and growing around them, have become important industrial groups. Worldwide automobile groups and brands are still focused on Germany, Japan, the United States, South Korea, Europe, etc., such as Volkswagen, Toyota, General Motors, etc.

China's automobile market is booming in both production and sales, with a market size of nearly 22 million. The important main forces are joint ventures and independent companies, with joint ventures being the most important. With the changes in automobile industry policies, there are also restrictions on the number of joint ventures. As well as the liberalization of share capital ratio, China's automobile market will enter a more intense state of market competition, and the competition among its suppliers will also be more critical.

With the electrification and intelligence of new energy vehicles, the demand for superior suppliers has become more urgent. With the expansion of production and sales scale, the establishment of core technologies and core supply chains has also become a test for new manufacturing. An important factor in car power. Among them, batteries, motors, electronic controls, smart cockpits, chips and MCUs required for autonomous value, such as lidar, millimeter wave radar, central processing units, autonomous driving chips, etc., are becoming the key to restricting development and delivery.

In the fierce battle of 2022, a stable supplier is also the winner. In essence, it is still a competition of cost and efficiency.