For the independent auto parts company, the “weak” seems to be synonymous. Which does have a lack of core technology and industry chain control and other reasons, but they can not be ignored by foreign funded enterprises in a variety of means to suppress this important factor. So, what tricks to use foreign funded enterprises are crush funded enterprise? To this end, this edition launched the “behind the scenes that thing” series of reports, please get noticed. Meanwhile, welcome to participate in the discussion on this topic the reader and provide valuable clues to the news.

Rely on technology leadership and the blockade of the core technology, foreign parts enterprises in China a great success, almost monopoly on the core components. Data statistics, foreign auto parts enterprises accounted for nearly 80% of our parts and components market share. In contrast, late start of the independent core components business has never been able to pose a threat to parts enterprises to foreign investors. This is largely because the result of foreign pressure. If the core components of foreign capital enterprises in the past, pressure on the performance of independent technical blockades, then now spans parts enterprises in the autonomous before addition to the technical “mountain”, the addition of a price “trap.” Pressure independent products with low prices, a price competition is being staged large commercial war.

Mechanical & Electrical Co., Ltd. Zhejiang Asia Pacific ABS is a leading manufacturer of the supply of its products own brand car business. ABS because of its self developed lower prices, the share of own brands are also gradually increasing market share. But recently, the price pressure from competitors in the Asia Pacific Bosch had a hard time.Bosch recent years as low cost strategy for the implementation of the Chinese market, so the original ABS market has a price advantage at the Asia Pacific independent impact ABS are great. It is understood that, in 2004, Bosch ABS production price of 2200 yuan per set. Such a high price, of course, there is product localization is not high, the cost has not yet been effectively controlled by objective reasons, but the ABS to take advantage of China’s own technological backwardness, can not compete with the time to swoop down on high profits, as is the high price of its ABS the main reason. Today, there are more new advanced technology applications, Bosch ABS price dropped to 480 yuan per set. At the same time, China’s own ABS is difficult to achieve such a level of cost control. Asia Pacific ABS can only be sold for a minimum price of 520 yuan each, which compete in the market in the Asia Pacific is very passive.

ABS Bosch occupy our country for 60% to 70% market share, increasing its monopoly firm to a large degree of autonomy stems from pressure on product prices. Bosch ABS system has experienced a price drop from high to low process can obviously see that the core components of foreign capital enterprises in China’s pricing strategy. ABS in China’s own technological level has not yet reached the market demands when it comes to high priced market, in the absence of competitors in the market under the partition, to obtain high profits. When the technical level of China’s own ABS increase by leaps and bounds, more OEMs recognized when the costs of amortization of completed foreign funded enterprises took advantage of the factory in China to enter the advantages of large scale production greatly reduced prices.

In this regard, our own little protection against ABS products. As a result of the technology is not yet mature, high equipment costs, there is no scale, self Bosch ABS did not meet the cost as the level of competition in the market in a very passive situation. Not long ago, Bosch has released the 9th generation ABS ESP system, which the price has dropped by 15% to 20%. This means that even if the lower prices, Bosch ABS still be able to make money, a huge cost advantage is the proprietary products can not match. The same story also occurs in high pressure common rail diesel systems and electronic control systems in the field. Bosch High Pressure Common Rail diesel engine prices in China, with its own brand products, batch process, a clear drop out of the curve. From each 30,000 yuan to 20,000 yuan each, to 1 million yuan, Bosch high pressure common rail products economical and even the lowest price is only 5,000 yuan, but not to receive product calibration fee. In contrast China’s own EFI products, price 5000 yuan each. The relative ratio of the two, both in the technical level, reliability, have certain advantages of foreign high pressure common rail product is clearly the first choice for OEMs. At present China has independently developed high pressure common rail product has not yet mature, not a threat to the foreign similar products to Bosch is targeting foreign companies represented by this time, the core components of autonomous enterprises crush.

Bosch ABS in China accounted for 60% to 70% market share, increasing its monopoly firm to a large degree of autonomy stems from pressure on product prices. Bosch ABS system experienced a price drop from high to low process can obviously see that the core components of foreign capital enterprises in China’s pricing strategy. ABS in China’s own technological level has not yet reached the market demands when it comes to high priced market, the case in the absence of competitors share the market, reap high profits. When the technical level of China’s own ABS increase by leaps and bounds, more OEMs recognized when the costs of amortization of completed foreign funded enterprises took advantage of the factory in China into the advantages of large scale production greatly reduced prices.

In this regard, China’s own ABS products to be naked. As a result of the technology is not yet mature, high equipment costs, there is no scale, self Bosch ABS did not meet the cost as the level of competition in the market in a very passive situation. Not long ago, Bosch has released the 9th generation ABS ESP system, which the price has dropped by 15% to 20%. That means that even lower prices, Bosch ABS still be able to make money, a huge cost advantage of proprietary products can not match. The same story also occurs in high pressure common rail diesel systems and electronic control systems in the field.

Bosch High Pressure Common Rail diesel engine prices in China, with its own brand products, batch process, a clear drop out of the curve. From each 30,000 yuan to 20,000 yuan per set, and then to a thousand dollars, Bosch high pressure common rail products economical and even the lowest price is only 5,000 yuan, and calibration charges will not be charged products. In contrast China’s own EFI products, price 5000 yuan each. Relative ratio of the two, both in the technical level, reliability, have certain advantages of foreign high pressure common rail product is clearly the first choice for OEMs. At present China has independently developed high pressure common rail product has not yet mature, not a threat to the foreign similar products to Bosch is targeting foreign companies represented by this time, the core components of autonomous enterprises crush.

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