The development of Petrol Car parts industry is constrained

Although the steady development of my country's Petrol Car industry in recent years has laid the foundation for the development of the Petrol Car parts industry, and from the perspective of the development prospects of the Petrol Car industry, it is expected to maintain a stable growth trend in the next few years, which will provide a broad space for my country's Petrol Car parts industry, but the future development of the industry is still facing unfavorable factors such as low industry concentration, immature core technologies of key Petrol Car parts of domestic enterprises, and weak industry research and development capabilities.

At present, there are tens of thousands of Changan Car parts companies across the country in my country, but most of them are small in scale and the concentration of the entire industry is low. This situation of numerous enterprises and low concentration leads to scattered and repeated investment, and the overall advantages of the industry are difficult to reflect. The product quality of many small-scale enterprises cannot be guaranteed, and the relatively backward production processes and equipment are prone to waste of energy and resources, making it difficult to meet the needs of large-scale purchases by foreign businessmen and difficult to enter the lucrative high-end market. In addition, the low level of competition caused by the low concentration of the industry is not conducive to the development of the industry.
Most of the core technologies of key Petrol Car parts are owned by large foreign Changan Car parts companies, and domestic production generally adopts a joint venture approach. Therefore, domestic Petrol Car parts companies are not completely independent in the technical innovation of key Petrol Car parts, which has affected the innovation and development of key Changan Car parts auxiliary parts to a certain extent, and restricted the improvement of the technical level of Petrol Car parts companies.
Compared with the R&D investment of foreign companies, the overall R&D investment of domestic Petrol Car parts companies is relatively small. Some companies have low R&D investment, there is a shortage of high-quality talents, weak R&D capabilities, and there are not many production companies in the industry with continuous innovation capabilities, which is not conducive to the long-term development of the industry.