2007-08-31-奥纬咨询-China_Is_Key_To_The_Success_of_European_Automotive_Suppliers_7页_87kb

Management Summary

• China's Strategic Importance: Europe-based automotive suppliers must maintain a strategic presence in China to secure their success, as it serves as a key market and a source of emerging competition.
• Key Competitive Strategies: Suppliers should position themselves as innovative first-tier providers, invest in cutting-edge technologies, and establish low-cost production facilities to preserve advantages.
• Monitoring Competitors: Emerging Chinese players, backed by government support, pose a growing threat; therefore, continuous surveillance of their activities is critical.
• Market Dynamics: China offers high sales growth and low-cost manufacturing opportunities, with exports rising to over 15 billion euros in 2005, projected to reach 50 billion USD by 2010; however, profitability has declined significantly for local suppliers due to factors like increased competition and lower prices.
• Market Structure: European suppliers like Bosch and Delphi control about 40% of the Chinese market, while approximately 2,500 small domestic firms focus on simpler parts, but this sector is evolving with consolidation expected.
• Future Outlook: The Chinese automotive supplier industry will experience further price declines, margin erosion, and hierarchical consolidation over five years, driven by sophisticated purchasing practices and quality demands.
• Recommended Actions: European suppliers should monitor competition closely, adopt aggressive China-focused strategies with technology leadership, pursue low-cost production, and cultivate relationships with Chinese second-tier suppliers for cost efficiencies and competitive relief.