“Golden Age” of Domestic auto parts
The domestic auto parts market has never been as hot as it is now.Recently, Apple industry chain leader Lisun Precision announced to cooperate with Chery to develop vehicle ODM mode, aiming to become the world’s leading Tier 1.News, will cause industry shock, but it is reasonable to think about it.With the continuous improvement of the penetration rate of new energy vehicles and the acceleration of the expansion of its market scale, the auto parts market has naturally become the focus of the layout of manufacturing and technology giants.At present, there are already a lot of smart phone industry chain manufacturing giants, began to vigorously layout the new energy vehicle industry chain.For example, Foxconn works with byton, Geely and other automakers to provide contract manufacturing and component production for automakers.Wentai technology integrates the advantages of intelligent hardware, automotive grading semiconductor, communication business and other aspects, and transforms to automobile Tier 1;Changying Precision has layout in power battery cover, charging equipment, automotive interior and other fields……In addition to traditional manufacturing giants, established home appliance companies such as Midea Group, and technology giants such as Huawei and DJI have all set out in the auto parts market to become the leading Tier 1.Such a situation would have been unthinkable just a few years ago.After all, for decades, China’s supply chain power in the era of petrol cars was far less than that of the international giants.However, with the advent of the era of new energy vehicles, the domestic manufacturing giants accelerate the layout of the new energy vehicle industry chain, which is expected to break the system of the traditional international Tier1 giants, and the domestic auto parts industry is expected to achieve “lane change overtaking”, ushering in the independent golden age./ 01 / International Tier 1 giant barriers begin to collapse the traditional fuel car supply chain system is a rigid pyramid system.At the top of the pyramid are oems, which control the core technology of powertrain, and below that are Tier 1 suppliers, often referred to as Tier 2 suppliers, which are outsourced to build a huge automotive supply chain.In this system, Tier1 uses assembly systems, strong brands and deep customer resources to achieve profitability, while Tier 2 suppliers are far away from oems, and their technology level is not as good as Tier1, and their bargaining power is very weak.After 100 years of development in the era of gasoline vehicles, Tier 1 has given birth to a number of global giants with deep technological accumulation and customer resources, which have dominated the industry.These Tier 1 giants, starting early, are the standard-setters in automotive engineering, creating deep barriers to competition.For example, Bosch, the world’s largest auto parts supplier, began to produce semiconductor components with diode, transistor and IC in 1970, and then launched a series of epoch-making technologies and products in the automotive field such as ABS, MEMS and ESP. It is still a leader in the automotive electronics industry.Due to the early entry of international Tier 1 giants and their strong supplier system closely linked with the developed automotive industry, there is a big gap between Domestic Tier 1 enterprises and foreign ones.In terms of quantity, among the top 100 global auto parts suppliers in 2021, there are 23 Japanese enterprises, 22 American enterprises, 18 German enterprises, followed by 9 South Korean enterprises and 8 Chinese enterprises.In addition, the list of eight enterprises, its overall ranking is also low.Among the eight domestic companies in the top 100, Yanfeng ranked 17th, the highest, while the other seven ranked below 40th, data showed.The reason for the low ranking is easy to understand.After all, the domestic automobile industry started late, the market competitiveness of independent brand car enterprises is weak.At the same time, the supply chain system of German and Japanese auto brands is very closed, and it is difficult for domestic parts suppliers to break through the barriers of giants.Therefore, the products of the 8 listed enterprises are mainly concentrated in low value-added fields, such as Yanfeng, Hainachuan, Minth Group, Wuling Industry and other companies, whose main business is interior and exterior decoration, while CITIC Daika is wheel hub.However, with the advent of the era of new energy vehicles and the attention paid to intelligent cockpit, autonomous driving and other sectors, the rigid barrier formed by the international Tier 1 giants has gradually begun to break down./ 02 / Intelligent electric vehicles to restructure the industry pattern new energy vehicles and fuel vehicles, not only in the use of energy has changed, but also in the production concept, hardware, software and the application of new technologies and new materials have undergone great changes.This change is the main reason for the impact of traditional fuel vehicles and their matching supply chain system.Specifically, the core changes are mainly reflected in the concept of new energy vehicles on the supply chain system.As mentioned above, the traditional fuel oil vehicle supply chain system connects Tier 1 and Tier 1 to Tier 2.And new energy vehicle enterprises tend to adopt a more flat and flexible supply chain system, with a faster product iteration rhythm, to adapt to market changes.To be more specific, current Tier 2 or Tier 3 suppliers can directly supply new car manufacturers such as Tesla and Wei Xiaoli over Tier 1.Take Qualcomm for example, in the traditional fuel vehicle supply chain system, Qualcomm’s position may be Tier 2 or Tier 3.In this case, Qualcomm cannot communicate directly with vehicle manufacturers.However, with the rapid development of new vehicle enterprises, oems often communicate directly with Qualcomm, and their position in the supply chain tends to change to Tier 1.In addition, the application of new technology, is also one of the key reasons to impact the traditional automotive supply chain.The most typical example is the application of integrated die casting technology.In an electric vehicle, the battery is the most heavy component. Together with the motor and electronic control, the three-electric system usually accounts for 30-40% of the weight of the whole vehicle of new energy vehicles, which has a great impact on the range of electric vehicles, thus affecting the cost of the vehicle.To reduce body weight, reduce manufacturing costs and increase productivity, Tesla announced on the Model Y that it will adopt an all-in-one die-cast rear floor assembly.The new technology will reduce the Model Y’s manufacturing costs by 40 percent, with 79 fewer parts.With the application of more large die castings, the vehicle weight will be further reduced by 10%, corresponding to a 14% increase in endurance.For a long time in the past, integrated die casting technology was not ready for mass production.One of the biggest obstacles was that in the die-casting market at that time, the clamping force of the die-casting machine with a maximum of 5000 tons was completely unable to meet the demand of Tesla to manufacture large integral parts.Subsequently, Tesla and IDRA, a die-casting machine manufacturer controlled by Lijin Technology, jointly customized the integrated die-casting machine Giga Press, with a tonnage of up to 6000 tons. Currently, the 8000T die-casting machine is also in the planning.To some extent, the new integrated die-casting technology has enabled IDRA and Regent technology to successfully enter tesla’s Tier 1 system.With the concept of integrated die casting widely accepted, Lijin technology has become one of the hottest suppliers in the industry.These changes mean that the traditional auto parts supplier system has become flat and more open.In the era of new energy, the domestic automobile industry has realized the “lane change overtaking”, and domestic parts manufacturers have ushered in the opportunity of rising./ 03 / Domestic auto parts manufacturers are on the rise. The arrival of the new energy era, to a certain extent, has eliminated the huge advantages of traditional oil car giants in China’s auto market.After the “change of track”, new car and autonomous car enterprises have made their efforts, and the domestic supply chain system is rising rapidly. Desaixiway’s entry into the top 100 global supply chain is a symbol.The Sinicization of Tesla, in a sense, can be seen as a catalyst for the rise of domestic automobile supply chain.When Tesla entered China, it signed an agreement with the Shanghai government under which all suppliers to the Shanghai factory would eventually be made locally.After entering China, Tesla lowered the price for many times to accelerate the popularity of electric vehicles, which was accompanied by the gradual deepening of the localization of Tesla’s supply chain.In this process, Tesla’s strong brand effect has a strong pulling effect on domestic parts suppliers.At the same time, the entry of tech giants is accelerating the rise of domestic auto parts suppliers.Huawei, DJI and other technology giants enter the automotive market, positioning themselves as Tier 1 suppliers of smart electric vehicles.At the end of last year’s huawei smart car solution ecology on the BBS, huawei smart car solution BU partners have increased to more than 300, covering intelligent driving cars, iDVP intelligent digital platform, intelligent cockpit three big business, there is no lack of among them such as kechuang, desai in west wei, ningde era, fuyao glass, etc. High quality auto parts suppliers.Beyond the traditional automotive manufacturing supply chain, the opportunities presented by “software-defined vehicles” are now more noteworthy.In the field of autonomous driving AI chips, domestic suppliers are starting to emerge.The market for self-driving chips has long been dominated by two companies, Mobileye and Silas.In recent years, companies such as Nvidia, Qualcomm, Domestic enterprise Horizon and Black Sesame Intelligence have expanded into the field of autonomous driving chips.Among the new models that have been launched and will be launched, Nio ET7 and Zhiji cars are equipped with Nvidia Orin chips, Xiaopeng P7 is equipped with NVIDIA Xavier chips, and domestic autonomous driving AI chips have also begun to “get on the bus”. The 2021 Ideal ONE, which is currently selling well,Its auxiliary driving chips are two Journey 3 chips from Horizon, a Chinese autonomous driving AI chip startup.So far, Horizon Journey 3 is the only homegrown AI chip that has “boarded” the vehicle.But beyond the horizon, black Sesame Intelligent, Chi Technology, Huawei and other domestic autonomous driving AI chip companies, their products also have good performance.It’s not hard to see how big a change is happening.In the century-old time window of automobile industry system reconstruction, the structural upgrading of domestic automobile industry led by science and technology giants will certainly bring about the strong rise of domestic auto parts system.