Auto parts market barriers

(1) Barriers to entry into the vehicle parts procurement system

The pyramid-shaped matching relationship between vehicle manufacturers and auto parts companies has formed a relatively fixed interdependence relationship between vehicle and auto parts companies, and their cooperation relationship is relatively strong. It is more difficult for new entrants to replace the original supporting suppliers.

(2) Quality system certification, process review and product approval barriers

OEMs must strictly select and control parts and components supporting enterprises. First of all, component companies must establish an internationally recognized third-party quality system designated by the main engine manufacturer, such as ISO/TS16949; secondly, the main engine manufacturer must also make all aspects of the parts supporting factory (such as QCLDM-quality/cost/logistics/R&D/ Five aspects of management) conduct strict scoring audits, and conduct on-site manufacturing process audits; finally, each accessory product must undergo strict quality audits and undergo a long-lasting product installation test assessment.

(3) Technical barriers

Most auto parts manufacturers have formed unique production processes in the production process. These production processes have unique competitive advantages in improving product performance, product reliability, production efficiency and reducing costs. In addition, the OEM market requires suppliers to have strong new technology and new product development capabilities, and actively participate in the simultaneous development of vehicle manufacturers' products.