Automotive Electronics Market Business Opportunity Domestic Enterprises "Ignored"

70% of technological innovations in the automotive sector come from automotive electronics products. The development of automotive electronics is an important way to promote electronic information technology and product innovation. Experts believe that in the general growth of the traditional IT industry such as home appliances and computers, the growth has been sluggish or even shrinking, and automotive electronics has become a new growth point for the development of China's information industry. However, the domestic automotive electronics industry is still in its infancy and exposes many problems.

In recent days, Amoi Electronics has invested 175 million yuan in hand-in-hand with Nanjing Automobile Group to jointly manufacture automotive body products. Wang Zhiquan, a spokesperson for Xiaxin News, said: “The 175 million yuan investment this time is mainly for the company to carry automotive electronic product platforms, such as car phones, car TVs, car laptops, and car stereos, which is an extension of the company’s industry.”

There is no "margin" for domestic companies in huge markets

In recent years, the global automotive market has developed rapidly, and the automotive electronics market has also risen. According to market research and consulting firm Strategy Analytics Inc., from 2002 to 2007, the annual growth rate of the overall automotive electronic systems market is approximately 6.7%, which will increase from 106.4 billion US dollars in 2002 to 147.2 billion US dollars. According to statistics from the National Bureau of Statistics, in 2005 China's auto electronic product market size could reach 250 billion to 300 billion yuan, and the growth rate of automotive electronics will increase from the current 10% growth rate to 20%.

Not long ago, Bird, BYD, and other companies have invested heavily in the automotive market, causing more and more manufacturers to covet this "cake" of the scale of 100 billion yuan, bringing unprecedented prosperity to the domestic automotive electronics market; but looking at this emerging industry, regardless of Technology, scale, and brand marketing all reveal the embarrassing status quo.

It is reported that China’s automotive electronics market is largely occupied by the world’s leading auto parts manufacturers Delphi, Denso, and Bosch’s Big Three; Siemens’ share in the automotive electronics market in China has reached 15%, and it has occupied the market in automotive core components. The rate is as high as 30%. Motorola has already regarded auto electronics as its new business growth point in China. Its automotive electronics business exceeds communications equipment and it has become the largest business in China.

Maybe it is the momentum of the outsiders and the existing Jiangshan that has made it lack of confidence. Wang Zhiquan said that Amoi did not think about how much the future will account for the Chinese automotive electronics market.

Technology, scale needs to be improved

Behind Yan's market share is technology, backwardness, and no own brand. According to the reporter's understanding, at present there are about 1,000 companies involved in automotive electronics in China, mostly low value-added products, such as speakers, DVDs, etc., while domestically high-end products are almost blank.

Shanghai Zheng'an Instrument System Co., Ltd., director of Shanghai Ben'an Guangdian Intelligent Control System Co., Ltd. Wang Zheng, told reporters that compared with the international advanced level, China's automotive electronics products have a wide gap, mainly reflected in the absence of a complete network protocol and specifications in China. , poor anti-interference. The strength of domestic manufacturers is not strong enough, and individual capabilities are weak; in addition, electronics belong to the communication system and all parties need to work together to overcome breakthroughs. On the other hand, automotive electronics products often need to start planning from the vehicle design stage. However, at present, domestic auto companies lack their own design capabilities. Foreign-funded enterprises often do not consider cooperation with domestic companies when designing complete vehicles.

The failure to achieve economies of scale is also a bottleneck in the development of domestic automotive electronics companies. Delphi Beijing Branch staff told reporters: "The automotive electronics products belong to the mass products, the market is large, the profit space is large, the technology, the capital, the scale demand are very high, the large electronic enterprise enters the automobile electron to the entire industry to be an enhancement and the promotion. It seems that Bird, BYD, etc. have not yet formed mass production.

Yan Jianlai, director of the Parts and Components Division of the Automobile Industry Association, said that the biggest problem now is that China's spare parts do not have its own brand, not only lack of technology.

Business needs to be cautious

Yan Jianlai believes: “Our market space for automotive electronics products is only an estimate, and all the profits of products such as ABS are counted. Actually, the implementation of ABS is mechanical and should not be counted as electronic products. profit."

Yang Hong, general manager of professional automotive electronics company Hang Sheng Electronics, believes that there are indeed many opportunities in automotive electronics. As emerging markets, especially China’s automotive electronics industry, are still at the starting stage, there are often hidden risks behind them, companies are entering Before you must be fully prepared to understand the characteristics of China's automotive electronics market, do not blindly follow suit. His experience is that he will do the same step-by-step and make it bigger, with a single product as the main product, and cut into the automotive industry chain.

Call for policy support

The status quo of the automotive electronics industry also reveals the weakness of the industry supporting chain. This is the result of China's long-term emphasis on the vehicle and neglect of the development of automotive electronics, and the introduction of technology focuses on the single introduction. Automotive electronic products are used as accessories for complete vehicles. Their main customers are automobile production enterprises, while China’s automobile production enterprises are mainly joint ventures; foreign automobile manufacturers have fixed accessories manufacturers, and the industrial chain is very complete, making it difficult for domestic automotive electronics companies to enter. This market.

Compared with the strong support of foreign governments, the Chinese government’s policy intervention in the automotive electronics field is still not deep enough. Yan Jianlai told the reporter that China has not yet specifically supported the policies for automotive electronics products. The “15th Development Plan for Automotive Electronics and Electronics” is just a guide to the development of automotive electronics products.

Because automotive electronics have higher requirements for adaptability to temperature and climate, different automotive manufacturers have different requirements for customized electronic products, which requires a considerable investment from automotive electronics manufacturers; in addition, the products also face long system development cycles. The problem of long service life makes it difficult to keep up with the pace of technological innovation in the information industry. Experts believe that the application and development of automotive electronics rely heavily on standard regulations. To solve these problems, the most important thing is to promote the establishment of standards and regulations for automotive electronic products. By achieving mass production, manufacturers can easily participate and increase the speed of development.

In order to promote industrial development, the Ministry of Information Industry has made the development of automotive electronics the focus of this year's work. At present, the Ministry of Information Industry will coordinate with the automotive industry authorities, organize technology and industry experts to study and formulate automotive electronics development plans, determine key technology breakthroughs and key product research and development directions, and will quickly study and formulate plans to promote the development of China's automotive electronics industry. Support policies.

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