Auto Parts Vertical Monopoly Case Fermentation Development and Reform Commission Launches Peripheral Investigation

A survey on vertical monopoly of auto parts is underway. At this critical time node, Huang Yonghe, director of Automotive Industry Policy Research Office of China Automotive Technology and Research Center, summoned people involved in the maintenance, insurance, and parts and components industry on March 5 to disclose information on parts and components of automakers and break down manufacturers. Call for absolute monopoly status of parts and components. “Whole vehicle manufacturers do constitute a vertical monopoly on the Chinese accessory market,” Huang Yonghe said. The current legislative body is recommending relevant departments to make policy adjustments and intends to pass regulations to break the monopoly of auto manufacturers’ original parts channels and zero. The restrictions imposed by component suppliers require that car suppliers must not restrict authorized suppliers to sell accessories externally, and must not restrict component suppliers to use their own trademarks and logos on accessories, and disclose product information at the same time.

Xu Kunlin, Director of the Price Supervision, Inspection and Anti-Monopoly Bureau of the National Development and Reform Commission , also stated on February 19 that he was doing a peripheral investigation of the vertical monopoly of auto parts.

“We will follow the way to promote information disclosure and make the accessories industry more healthy.” The person in charge of the Department of Road and Transport of the Ministry of Transport said in an interview with reporters.

700 billion stake cake

"The key to the car was lost. It took 2700 yuan for the key to the 4S shop, but in the Auto City, 100 yuan will be able to handle it." Wei Tongwei, secretary general of the China Automobile Maintenance Industry Association, said that consumers mostly have limited knowledge of auto parts and are reassured. , can only go to 4S shop to accept high prices, or even Mongolian.

It is a common practice for 4S shops to treat minor illnesses and major diseases and change parts only without maintenance. In the view of the industry, the monopoly of parts manufacturers and product information by vehicle manufacturers is the main reason that affects the development of the accessories industry chain and leads to market confusion.

Zhong Chi Auto Parts CEO Zhang Houqi told reporters, “The current interest chain is that imported vehicle companies purchase parts from parts and components companies, then increase prices by 50%-100% for 4S stores, and 4S stores for 50%-100%. For sale to consumers, domestic models may be lower, but the price increase is also around 25%.If a domestic new car is opened, each component is sold separately, the overall price will reach 3 times the price, imported luxury cars even It can reach 5 times."

In Huang Yonghe's view, an important reason for the chaos in the above-mentioned maintenance market is that currently domestic major automobile manufacturers (including imported car companies) do not disclose technical information on car maintenance to the society, resulting in that integrated companies cannot provide equal and effective technology. With support, it is difficult to compete with 4S stores in the aftermarket maintenance field.

In addition, because some OEMs often require upstream component manufacturers to sign agreements to ensure that the complementary products provided by them do not flow to the aftermarket, the entire vehicle manufacturer can smoothly control the price of spare parts.

The industry expects that by 2015, the size of China's auto aftermarket will reach 700 billion yuan. Whether it is vehicle manufacturers, distributors, or parts manufacturers, they are reluctant to give up this seductive “big cake”.

At present, there are mainly two channels for automobile after-sales maintenance and spare parts supply services, namely, the channels for 4S stores controlled by vehicle manufacturers as the main implementation carrier, and the independent aftersales distribution channels. Automobile maintenance companies mainly include 4S shop systems authorized by automobile manufacturers for car sales and maintenance services, and non-authorized integrated vehicle maintenance companies.

Although the total number of 4S stores is not large, it has taken over 60% of the entire industry. One side is that 4S shops are overcharged with high-priced vehicles, opaque consumption, and consumers are often forced to consume. On the other hand, there are many problems such as the lack of comprehensive repair factory parts and the difficulty of business survival.

Huang Yonghe believes that vehicle manufacturers occupy a strong position in the aftermarket, strictly control the dealers' operating activities, monopolize the technical information and distribution channels of the original parts, and master the absolute pricing power, resulting in the maintenance of automobile prices and accessories. The price is very expensive for important reasons.

The vehicle manufacturers, however, believe that it is difficult to break this situation in the short term. From the point of view of information disclosure, “There may be issues involving intellectual property here, just like you open a restaurant, and the country wants you to announce the seasoning of the food, which is a bit overbearing.”

Breaking information monopoly

The control of 4S stores by vehicle manufacturers is not unrelated to the “Administrative Measures for the Implementation of Automobile Brand Sales” issued by the Ministry of Commerce in 2005. This gives the vehicle supplier a direct control over the distributor of terminal circulation.

A person in charge of the dealership group responsible for the post-market told the Economic Observer that the vehicle manufacturer had a certain amount of tasks for the authorized store to purchase the original parts, and if it could not reach the task, it would not be rewarded. At the same time, dealers are strictly required not to purchase parts from other sources. Previously, some dealers purchased vice-vehicle parts from other sources in order to reduce costs, not only because they were fined, but they were even almost canceled.

The reality is that, except for a few OEM parts and components companies, most of the accessories companies cannot obtain the original technical data, and it is difficult to develop and design high-quality accessories, nor can they enter the normal market sales system. In the European Union, all repairers have the right to obtain technical information on the maintenance of car manufacturers.

In addition, even original parts manufacturers cannot use technical advantages to directly sell accessories to independent aftermarkets. Otherwise, they will be capped with counterfeit accessories. The development of the accessories industry is greatly undermined.

Huang Yonghe believes that the definition and standard of accessories must also be clearly defined and be in line with international standards. "We think that parts and components sold as long as they are not sold through 4S stores are considered to be fake products, which is also contrary to the law.

However, to overturn this model, we must first amend the “Automobile Brand Sales Management Method.” This is not easy. However, Huang Yonghe said that the "Measures" began to be implemented in April 2005, and China's "Anti-Monopoly Law" was introduced in 2008. There is a certain time lag between them. "We cannot categorize all the reasons for the management of automobile brand sales. In the current form of the automobile industry, it is possible to amend the rules and regulations that are contrary to it under the anti-monopoly law."

Zhang Houqi also stated that the core of resolving the monopoly issue is to adopt legislation to break the model of direct control of the original parts by the entire vehicle manufacturer, requiring the automaker to release the shackles of the original parts, so that the original parts can also be circulated to the market. “The current price is too high. If manufacturers can give up on the procurement process, even if 70% of the purchase of original parts is stipulated, and 30% can purchase the auxiliary parts freely, we can reduce maintenance costs and retain more customers. "A dealer responsible person said.

Cao Xuejun, chief engineer of the Institute of Automotive Technology of China Research Institute, admits that it is precisely because information is not disclosed that maintenance prices have risen. In insurance maintenance, the cost of replacement of parts and components accounts for 2/3, which makes premiums rise.

Regarding the reasons for quality assurance of auto parts manufacturers and 4S stores for strictly controlling information and products, Wei Tongwei stated that as long as the standards of the maintenance industry are clear, manufacturers give open access to technical information, and the parts and components industry does not have any problems in the quality certification based on information. , "You can also introduce maintenance traceability system to ensure product specifications and quality." "We should vigorously promote the quality of certified accessories," China Automobile Industry Association deputy secretary-general Tung Chee-ping's idea is that the vehicle manufacturers should open parts The drawings allow the suppliers of related parts to develop parts with slightly lower shelf life than the loading parts. The materials and processes are slightly worse, but there is also a complete set of systems to regulate and coordinate and certification by the vehicle manufacturer.

As a result, 4S stores and consumers can choose their own parts that are cheap and have a shorter shelf life to save costs. For component manufacturers, it is also conducive to shaping their own brands.

In fact, some strong component manufacturers, such as Bosch and VALEO, have started their own after-sales sales operations. However, most of the weak brands still dare not take this risk, so as not to offend the vehicle manufacturers and lose their qualifications to supply original parts.

EGR VALVE

DC Motor

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