China's automotive electronics core technology needs to be improved

In China's auto parts industry chain, especially high value-added and high-tech parts such as automotive electronics, China's domestic parts and components manufacturers are unable to compete with foreign companies because of their backward technology. Most of the import and export automobile electronic and electrical products are Chinese-foreign joint ventures and wholly foreign-owned enterprises. The “zero-integration relationship model” between foreign-owned parts manufacturers and multinational auto companies has been recognized by the Chinese market.

The allocation of various types of electronic and electrical products in automobiles is not only the need for motorized control systems for automobiles, but also the development of entertainment, information, and networking. China has developed into the world's largest consumer of automobiles. After years of development, automotive electronics has also formed a certain industrial scale. In 2006, the scale of China’s automotive electronics market reached 8.7 billion yuan. The year of 2007 to 2011 was the year of China’s automotive electronics market. The compound annual growth rate will exceed 20%, and it is expected to reach a scale of RMB 240 billion in 2011.

According to statistics, the cumulative amount of China's automotive electronics imports from January to July this year was 264 million US dollars, up 68% from the same period in 2007; the cumulative amount of exports was 362 million US dollars, an increase of 31% over the same period of 2007, and the year-on-year growth in imports of automotive electronic appliances. The speed is significantly higher than the export.

The top three countries in terms of imports in July this year were Japan, Germany, and South Korea, which accounted for 37%, 26%, and 14% respectively. Imports from the three countries together accounted for 77% of the total, and the top three countries that import automotive electronics were imported. All of them are superior countries in the vehicle industry, and the corresponding imported automobiles are more electronic and electrical. The top three export countries are Japan, the United States, and South Korea, which accounted for 25%, 23%, and 11%, respectively, showing that in the automotive electronics and electronics industry, Japan, the United States, and South Korea still have significant advantages in electronics technology.

The percentage of imported automotive electronic and electrical products of Sino-foreign joint ventures is as high as 45%, followed by wholly foreign-owned enterprises. This is also due to the fact that China's entire vehicle companies are mostly Sino-foreign joint ventures. The nature of importers differs from that of importers. Exports are mainly foreign-owned enterprises. Accounted for 62% of total exports, Chinese and foreign companies ranked second, accounting for 20%, state-owned enterprises only 4%, and ranked behind private enterprises.

The automotive electronic products with relatively large export amount were, in turn, the ignition wiring group for motor vehicles, the radio recording and release (Vo) combination machine for automobiles, and the radio navigation equipment for motor vehicles. The export value was 9.96, 7.08, and 649 million U.S. dollars, respectively. 33.4%, 22.7% and 19.5% of the export value. The rapid growth in exports in the first half of the year was for parts of electric sunroofs, anti-theft or fire alarms and similar devices, and for airbags and components with inflation systems, with growth rates of 201.6%, 133.4% and 86.5%, respectively.

China's automotive electronics products have formed strong production and supporting capabilities. They have relatively high competitiveness in medium-to-low-end products, and have obvious comparative advantages in terms of prices. They have the international space to expand exports.

The larger import amounts were airbags and their parts with inflatable systems, anti-lock braking systems for vehicles, and electric sunroofs. Their import amounts were 197.0, 68.0, and 64.0 million US dollars, respectively, accounting for 31.4 of the total imports. %, 10.8% and 10.3%.

The rapid increase in import value of parts and components such as fare meter/odometer, automobile collection/listering (playing) and soundproofing or fire alarm and the like, the growth rates were 159.1%, 114.4% and 111.8%, respectively. Airbags, anti-lock brake systems for vehicles, and electric sunroofs are high-end automotive electronics products that China still lacks. They will still need to be imported in the next few years. With the continuous increase of automobile production and people's increasing demands for automotive energy-saving, environmental protection, safety, and performance, the import volume and import value of these products will continue to increase.

With the continuous development of the domestic automobile industry, the proportion of automotive electronics, electronic control, and electric products in the total vehicle market is increasing. This is also the future direction of automotive development. The future of China's automotive electronics market will be increasingly concerned by the global industry. At present, the average proportion of China's automotive electronics products in the cost of all automotive products has exceeded 10%, but there is still a large gap between the average world level of about 25%, which also indicates that China's automotive electronics market has huge room for development. However, the current lack of core technologies in domestic automotive electronics companies is a hidden concern behind the prosperity of automotive electronics. Domestic companies can only have the market's leading power if they have the ability to independently develop and innovate.

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