Market barriers faced by automotive components
Published:
2023-02-23
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(1) Barriers to entry into the vehicle parts procurement system
The pyramid shaped supporting relationship between vehicle manufacturers and parts enterprises has formed a relatively fixed interdependence between vehicle and auto parts enterprises, with a relatively solid cooperative relationship. It is difficult for new entrants to replace existing supporting suppliers.
(2) Quality system certification, process audit, and product approval barriers
The host machine manufacturer shall strictly select and control the parts supporting enterprises. Firstly, component companies must establish an internationally recognized third-party quality system designated by the host manufacturer, such as ISO/TS16949; Secondly, the host manufacturer also needs to conduct strict scoring audits on all aspects of the parts and components supporting factory (such as QCLDM - quality, cost, logistics, research and development, and management), and conduct on-site manufacturing process audits; Finally, each supporting product must undergo strict quality audits and undergo sustained product installation testing.
(3) Technical barriers
Most automobile parts manufacturing enterprises have formed unique production processes in the production process, which have unique competitive advantages in improving product performance, product reliability, production efficiency, and reducing costs. In addition, the host supporting market requires suppliers to have strong new technology and product development capabilities, and actively participate in the synchronous development of products by vehicle manufacturers.
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