Auto core parts joint venture stock ratio liberalization is the trend of the times

[Huicong Auto Parts Network News] Under the spirit of WTO openness and sharing, it is the general trend to liberalize the share ratio of joint venture vehicle enterprises. The State Council has issued the Decision on Temporarily Adjusting Relevant Administrative Regulations, Documents of the State Council and Departmental Rules and Regulations Approved by the State Council in Pilot Free Trade Zones (hereinafter referred to as the Decision). The introduction of the "decision" is to release a major signal, the core components of the stock ratio is also inevitable. Put the key parts of automotive electronics and new energy vehicles into the pilot list, so that excellent Chinese brands have enough competitiveness to compete with multinational brands.

Pilot projects in related fields allow wholly foreign-owned

On July 19, the State Council issued the "Decision on Temporarily Adjusting Relevant Administrative Regulations, State Council Documents and Departmental Rules Approved by the State Council in Pilot Free Trade Zones" (referred to as the "Decision").

The "Decision" proposes that my country will further open up multiple industries and allow foreign businessmen to establish wholly-owned enterprises in corresponding fields in the free trade zone. Among them, adjustments related to the auto parts industry include allowing foreign investors to engage in the manufacturing and research and development of automotive electronic bus network technology (referred to as "CAN bus") and electric power steering system electronic controller (referred to as "EPS controller") in the form of sole proprietorship in Shanghai, Guangdong, Tianjin and Fujian free trade pilot zones. Foreign investors are allowed to engage in energy-based power batteries (energy density ≥ 110Wh/kg, manufacturing of cycle life ≥ 2,000 times).

Relevant industry experts said that the pilot production of core auto parts in the free trade zone will prepare for the liberalization of vehicle joint venture ratio. At the same time, the inclusion of key components of automotive electronics and new energy vehicles in the pilot list, as well as the recent discussion on the gradual lifting of the ban on auto joint venture shares, means that free competition in the Chinese auto industry market will become a trend.

CAN bus: independent brand enterprises have a certain competitiveness

It is reported that the CAN bus was first developed by Bosch, and now it is a concept. Vehicle companies independently develop on this platform according to certain standards. As the largest auto parts group at present, Bosch involves many automotive business fields. CAN bus and EPS controller are its strengths.

At present, most passenger car companies have their own CAN bus. With the development of smart cars, CAN bus will inevitably become a must for all smart cars. Domestic vehicle companies have relatively mature in the application of CAN bus. The CAN bus is dominated by the vehicle company, establishes the corresponding electronic control architecture, and sets its own unique standards according to the international common standards.

CAN bus, Ethernet and EPS controller, these key technologies of automotive electronics, have been mastered by a considerable number of domestic automotive electronics companies, but there is still prejudice against the technical research and development capabilities of independent components. Relevant experts believe that the state should encourage and support more innovative independent parts enterprises, so that the comprehensive competitiveness of independent brand parts enterprises can be improved. At present, in the fields of navigation, entertainment, vehicle communication and so on, independent brand enterprises already have certain competitiveness.

EPS controller: foreign investment-oriented autonomy has a gap.

At present, the core technology of EPS controller is basically in the hands of foreign-funded enterprises, such as Jettel, ZF, Ensk, Showa, Bosch, etc.

An industry person who has been engaged in EPS business for many years also said that most of the domestic EPS controllers are mainly imported. Continental Electronics, Omron, ELESYS and Jetaigt all have joint ventures in China, of which Jetaigt's EPS business accounts for about 11% of the Chinese market. Domestic independent brand enterprises include Zhuzhou Yilida, Zhejiang Shibao, Hubei Henglong, etc. These enterprises also independently develop and produce EPS controllers, with a certain gap in technical level compared with foreign capital. Shanghai Lianchuang Automotive Electronics, a subsidiary of Huayu Automobile, also develops and produces EPS controllers, which are equipped with SAIC and other independent brand models.

Relevant experts said that in the next 5 to 10 years, in the field of EPS controllers, independent brand companies will also have market competitiveness. Although from a technical point of view, there is not much gap between independent enterprises and foreign capital, but there is still a certain gap between technology, equipment capabilities and product consistency compared with foreign capital. In addition, independent brand enterprises have no brand advantage.

Regarding the impact of the pilot sole proprietorship in the free trade zone on independent brand enterprises, relevant experts believe that the pilot free trade zone alone will not have a great impact on independent brand enterprises, but from the perspective of the development of parts and components enterprises, market fairness is also very important. important. Some industry experts said that after the implementation of the sole proprietorship policy, the difficulty coefficient for local companies to master core technologies in these fields will increase, which will make the positioning of domestic and foreign automotive electronics product lines more obvious. The monopoly of international companies on upstream industries may Make China's automotive electronics industry has been wandering in the middle and lower reaches of the industrial chain.

Power battery: foreign investment eyeing autonomous fear of impact.

At present, the development of new energy vehicles in China is in full swing, and the power battery as its key component has also attracted coveted by all parties. Public information shows that the Ministry of Industry and Information Technology has published four batches of "Automotive Power Battery Industry Standard Conditions" corporate catalogues, including Tianjin Lishen Battery Co., Ltd., Hefei Guoxuan High-tech Power Energy Co., Ltd., and Duofluoroduo (Jiaozuo) New Energy Technology Co., Ltd., A total of 57 companies including Weihong Power System (Huzhou) Co., Ltd.

In addition, LG Chemical, Samsung SDI, Panasonic and other foreign-funded enterprises are also actively laying out in China, with joint venture factories in Nanjing, Xi'an and Dalian respectively, but at present, no foreign-funded power battery enterprise can enter the above catalogue. There are also rumors that Bosch is also "ready to move" on power batteries and wants to build a factory in Qingdao, China.

Relevant industry experts said that at present, domestic power battery enterprises can basically meet the requirements of energy density ≥ 110Wh/kg and cycle life ≥ 2,000 times. Although the cycle life of the ternary lithium battery is slightly worse, the energy density is high. In addition, China is combining graphene materials with ternary lithium, and the driving range, energy density and cycle life of power batteries will be greatly improved. Therefore, the industrialization capacity of power batteries has gradually accelerated in the past two years, but there is still a certain gap compared with foreign-funded enterprises, and it takes 3 to 5 years to give priority to development.

The industry generally believes that the "decision" on the impact of the power battery market is relatively large.

Relevant experts believe that the pilot project in the free trade zone means that it may be liberalized nationwide in the future. Although the technical level of power batteries is not large, most autonomous battery companies are in the growth stage and still need 2 to 3 years of cultivation. At present, foreign-funded enterprises have been "eyeing" China's power battery market. Once liberalized, the market will lose more share than the technology obtained in the short term. If after the liberalization, foreign investment into the power battery access directory, to support the independent brand subsidy dividend will be gone.

The liberalization of core component share ratio is the general trend.

Allowing foreign-owned investment in key components such as automotive electronics and power batteries in the free trade zone has opened the curtain for the further opening of the automotive industry.

So, after the liberalization of the stock ratio, the auto industry will really usher in a scourge, independent brand cars will encounter a "disaster"? Experts believe that this is just an important excuse for "conservatives", the stock ratio liberalization is not so terrible, but will bring opportunities.

the "industrial policy for the automobile industry" formulated in 1994 stipulates that,EngineThe proportion of Chinese shares in Sino-foreign joint ventures is not less than 50%, but this content was deleted from the "Automobile Industry Development Policy" revised in 2004. More than 10 years later, Cummins, the world's largest independent engine company, has established five complete machine production bases in China, all of which are joint ventures and have not taken the form of sole proprietorship. Therefore, after the liberalization of the share ratio, it is very unlikely that the current joint venture will be converted to a wholly foreign-owned enterprise immediately.

Let's look at the self-owned brand auto parts companies that do not have share ratio protection. Under the siege of foreign parts companies, some outstanding companies have also emerged. They have not only successfully entered the supporting system of vehicle multinational companies, but also ranked among the forefront of the world through mergers and reorganizations, such as Yanfeng, Yapu, Junsheng Electronics, Longcheng Precision Forging, Fuyao Glass, etc.