According to a report from Japan’s Kyodo News on May 29, Japanese auto parts manufacturers entering the Chinese market have recently made efforts to expand transactions with Chinese auto makers. The reason is that due to the intense competition, sales of Japanese automakers in China are in a difficult situation. If the relationship that continues to rely on Japan is mainly associated with nepotism, it is expected that sales will hardly improve and it will be difficult to survive in the Chinese market.
"The deal with auto makers other than Toyota is about 20%, but it will increase to 40% in 2017," said a senior Chinese auto parts giant Aisin Seiki's China subsidiary. Aisin's headquarters is located in Aichi prefecture just like Toyota. Into the Chinese market is also to provide parts for Toyota's factory.
About 3 years ago, Aisin began to vigorously explore cooperation with Chinese manufacturers and has begun to supply automotive sunroofs. The outlets of the Aisin Tianjin plant are also marked with the logos of the suppliers of the Great Wall Motors of Hebei Province and Jianghuai Automobiles of Anhui Province. It is reported that more and more auto makers in China are demanding high-quality components made in Japan.
In the Chinese market, there is fierce competition between Japanese auto makers and German and American automakers as well as European and American manufacturers. Aisin executives pointed out: "Toyota's (in China) market share has not increased. Japanese car dealers alone cannot expand their business in China."
On the other hand, Japanese car manufacturers also want to purchase more materials and parts from Chinese companies. The purpose is to increase the scale of procurement locally in China, where price competition is fierce, in order to reduce costs. Toyota executives said: "In order to reduce the threshold for the purchase of hybrid vehicles in China, our company will promote the localization process of components as soon as possible."
However, Japanese car prices will not reduce quality. Toyota last November established an R&D center in Changshu High-tech Zone, Jiangsu Province. In the experimental building where the latest equipment was introduced, the inspection person in charge used a special microscope to carry out the strength test and quality inspection of the steel purchased in China.
Toyota executives said: "We will seriously repeat the assessment work, even if a screw also wants to use Chinese products."
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