How to Win the New International Competition for Domestic Automotive Part Companies
In the first half of this year, there is a sharply contrast between “sudden cooling” of China’s passenger car and “great heat” of commercial vehicle market, while the automotive parts market has relatively stable development and the growth rate remained in double digits. Statistics from CAAM shows that the first five months of this year, the total revenue of 13119 automotive parts companies was 1.58 trillion Yuan, with year-on-year growth of increase 12.47%, while the total profit was 0.12 trillion Yuan, which up to 14.65%.
In the first half of this year, China’s automotive parts industry handed over a satisfactory “report card”. At the same time, the auto parts industry is facing a new battle-more and more international component companies enter open Chinese Market.
We can say that there are two meanings of internationalization of China’s automotive parts markets. On the one hand, the foreign investment ratio getting higher in automotive electronics and other fields, which shows that China’s auto parts industry will be more actively open, while the foreign companies need to come up with technology to gain a foothold in Chinese Market. On the other hand, many Chinese automotive parts companies have achieved diversified development through overseas acquisitions, after that these company come back and feed the main business in domestic market.
Today, more and more multinational auto parts companies are ready to enter Chinese market. In Toledo, Ohio, the heart of America’s manufacturing belt, there are many auto parts companies have stepped up entry into China. The growing Chinese automotive market is deeply attracting local small & medium-sized, professional and technical service companies; they all expect to have a great opportunity in China.
The competition in China’s auto parts market now is changing, in addition to the traditional multinational automotive component giants, from the overseas new competitors keep pouring into, China’s auto parts markets has become a place of “milk and honey ”, to win the market share in China is equal to improve the performance of the global market.
So, how to win the new international competition for domestic automotive part companies?
Scahin Lawande, the President of Visteon, points out the key point:” in the past few years, the biggest difficulty for Visteon in China is to find the perfect people.” In fact, the human talent problem is not only exist in the past and the present, but also in the future, it could be a key point of the sustainable development of various automotive part companies.
We could say that talent is the core of the sustainable development of an enterprise. Whether it is a multinational company entering China or China’s automotive parts company trying to “going out”, both of these two kinds of companies need excellent talent to help to become strong and big. In addition to pooling the talents, more important is to let the talent being able to use their intelligence in their position.
From the perspective of the present situation, China is not lacking of technical and managerial talents, but talent cultivation and promotion mechanism. Automotive Research Center in the Ohio State University, Chinese students form the biggest local overseas student team. These students participat in forward-looking technology research projects during school period, set up a stable relationship with the local automotive parts enterprises, then could enter those companies after graduation, realize the goal of “graduate to create value” which proposed by some auto part companies. Therefore, Chinese auto part company should learn from such talent cultivation mechanism.
In addition, the domestic auto part companies should also cultivate and promote talents from themselves. Many executives work in their company for many years, step by step to the top position. In their companies, the talent selection and employment strategies are mainly based on internal training and cultivation, which shows the stability and execution of human resource construction. The current performance does not really reflect the actual development of the company; only strengthen the talent team construction, consolidate the foundation of company’s sustainable development could make the company exist for a long-life.
Under such intense competition of automotive parts market, Bluestar Technology always insists in the customer-orientation, keep a good relationship with our customers. Every year, Bluestar has social recruitment, and also organize Human Resource Department to different national universities to have campus recruitment, to gather talents of technology, sales, and management , tries to make a good talent foundation for our further development.
News source: chinadaily.com