The automotive industry has a low starting point from host to spare parts

The automobile industry is a capital-intensive and technology-intensive industry, and it is a highly concentrated industry with specialized collaboration. China's automobile industry has gone through more than 30 years of development and has formed a basic and complete automobile production system based on FAW and FAW. However, the automotive industry has a low starting point and small batch size from host to spare parts. In a situation that is both decentralized and lagging behind, China National Automobile Corporation proposed the principle of “high starting point, specialization, and large quantities” and established cross-regional automobile enterprise groups such as FAW, China Auto, and Heavy Duty. This is the main measure to solve the above-mentioned backward situation.

The automotive industry is a pillar industry in Beijing. To develop this industry, it is necessary to solve the immediate situation. The establishment of an enterprise group (company), that is, the establishment of an integrated economic entity for the automotive industry in Beijing, is the best choice to resolve this situation, due to the following aspects.

First, the establishment of an accessories group is an important way to improve the effectiveness of macro adjustments and optimize the structure of accessories products. Through the formation of enterprise groups, the development of horizontal linkages between enterprises, through mergers, equity participation, and holdings can effectively promote the reasonable flow of stock, thus promoting the adjustment of product structure. The establishment of an auto parts group can increase the production concentration of the parts industry, thus changing the current situation of the auto parts industry in Beijing, and optimizing the parts products, highlighting key products and high-quality products. Secondly, the establishment of an auto parts group is an important way to increase the efficiency of existing asset utilization, develop professional production of parts and form an economic scale. Most of the accessories companies are small-scale, low-profit, low-profit, and have poor self-financing capabilities, making it difficult to carry out large-scale technological transformation.