The Development of the Auto Parts Industry
According to the research on the merchandising managers and some technical experts
, there are three reasons for this phenomenon. Firstly, China's automobile industry is developed extremely quickly which will obviously lead to the development of the auto parts industry. It is predicted that China will become world's largest market for auto parts industry. As a result, more and more companies want to share this "big cake". Secondly, the home appliance component products have little profits due to the heavy competition. Therefore, many of the manufacturers want to have a try on the auto parts industry. Thirdly, another important reason is that in the cycle of development, Chinese auto parts industry is still in the increasing stage with 10 to 15 years potential for long-term development. From the maturity integration period, it is expected to be 5 years or longer. Therefore, entering the auto parts industry at this stage is still a chance to win success. According to the research and analysis, most of the new entrants who are successful in business have a higher capacity of the company in the aspects of fine enterprise management and cost control. For some who are not that successful, it is due to their long-term incomprehension and inadaptability to the rules in the auto parts industry.The Development of the Auto Parts Industry
By: Lois Ling