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Xinhua News Agency, Beijing, October 26th, Jia Xinguang, chief analyst of China Automotive Industry Consulting and Development Corporation, pointed out that there are "re-assembly, light production, heavy production, light development, heavy-duty trucks and light fittings; The “virtual†thermal phenomenon related to “lightâ€, which will lead to the completion of several hundred billion yuan in investment, will result in a large-scale automobile assembly industry rather than a highly competitive auto industry.
Jia Xinguang said at the just-concluded "2003 China Industry Development Forum" that in recent years, CKD has become popular in the automotive industry. The production of cars in this way is quite simple and requires only three departments: logistics (demolition of containers), assembly workshops, sales companies, quick start, investment provinces, and large profits. However, the CKD approach has no positive significance for promoting the development of the auto industry. On the contrary, it will damage the development of auto parts industry.
He said that most of the current investment in the automotive industry is a joint venture production, the introduction of foreign products and brands; some are cooperative production, but also the introduction of the main; some of the projects using imitation. Very few investment projects include technical centers, development centers, and so on. In addition, China's spare parts industry is generally small-scale, backward technology, low-level repeat production, and product replacement is slow. In recent years, although the output of automobiles has grown rapidly, a large number of international procurement methods have been adopted. Even if local automakers engage in localization, it is only the introduction of more wholly foreign-owned spare parts and components companies that have not driven the original parts and components companies.
A survey of 760 key enterprises in the auto parts industry conducted by relevant departments in 1999 showed that the research and development expenses of these companies accounted for 1.44% of the total sales, while the international level was about 5%. According to the survey, the key assets of China's auto parts industry are relatively good, but their profitability is low, and their investment is insufficient. It is generally difficult to adapt to the rapid development of products.