Pyramid-type multi-level supplier system
To adapt to the complexity, high quality, and specialization of the parts in the vehicle supporting market, the auto parts industry has formed a pyramid-type multi-level supply chain system, that is, the supplier is divided according to the supply relationship with the vehicle manufacturers:
Tier-1 suppliers, Tier-2 suppliers, Tier-3 suppliers, and other multi-tier relationships.
The first-tier suppliers through the vehicle manufacturer’s certification, direct supply of parts and components for the vehicle manufacturer, participate in the synchronization of vehicle research and development, to provide modular supply services for the vehicle manufacturer, and vehicle manufacturers have a long-term, stable relationship;; the second-tier suppliers supply parts and components to the first-tier suppliers.
Second-tier suppliers supply parts and components to first-tier suppliers, and so on, usually the lower the tier, the greater the number of suppliers.
Some of the core or key components are vertically managed by OEMs or first-tier suppliers.
Strong stability of supplier system
The international division of labor and cooperation system of the global automobile industry has been established, and vehicle manufacturers have widely adopted the global division of labor strategy for vehicles and the global procurement strategy for parts and components, and the whole industry is gradually evolving in the direction of lean production, externalization of non-core business, globalization of industry chain configuration, and streamlining of management institutions. The interdependence between global vehicle manufacturers and parts suppliers has been gradually strengthened. Meanwhile, taking into account factors such as product development and product quality, vehicle manufacturers often set strict entry requirements for their supporting suppliers in terms of production scale, product quality and safety, synchronized and ahead-of-the-curve technological research and development, and follow-up support services. Therefore, once the two sides of the cooperative relationship are established, vehicle manufacturers usually will not easily change their supporting parts suppliers, and due to the more stringent supplier qualification certification, the certification cycle is long, vehicle manufacturers or first-tier parts suppliers to ensure production stability and continuity, the lower tier of the supplier once certified, the cooperative relationship will be stable for a long time.
Different markets have different entry thresholds and degrees of competition
According to the object of supply, the auto parts market can be divided into the vehicle-supporting market and the aftermarket. The vehicle-supporting market refers to the new car manufacturing supporting parts market; the after-sales maintenance market refers to the automobile sales, consumers in the process of using the parts wear and tear due to the need for repair or replacement of the market. After-sales maintenance market product demand is mainly based on multi-species, small batch, compared with the vehicle supporting market entry threshold is low. Therefore, the market concentration is low and the competition is fierce. The vehicle-supporting market has higher product quality requirements for parts and components, and supplier qualification is more stringent.
Industry Competition Pattern and Development Trend
Further increase in market concentration
At present, there is a certain gap between the proportion of vehicle and parts scale in China’s automobile industry and the mature automobile market, and there is still a large potential market space for China’s auto parts industry. At the same time, with China’s auto parts manufacturing enterprises’ R&D and innovation ability, overseas market development ability gradually enhanced, the international competitiveness of products gradually improved, and China’s auto parts industry will usher in a new round of development period. The mature auto parts market is characterized by industrial concentration, at present, China’s auto parts manufacturing enterprises market concentration is low, with intense competition. In the future, the auto parts industry will accelerate the pace of mergers and acquisitions, integration, and expansion of the industrial chain, market concentration will be further enhanced.
The industry gradually realizes structural optimization and product upgrading
China’s auto parts enterprises in large numbers, in addition to a small number of competitive large-scale parts and components enterprises, most of the enterprises are small in scale, weak in strength, R & D capability is insufficient, the lower price, limited profits in the low-end parts and components market to carry out fierce competition. As China’s labor cost advantage is increasingly weakened, the domestic auto parts enterprises only through the strengthening of technological research and development, breakthroughs in key parts and components technology barriers, improve the product structure, to achieve the development of system development, system support, modular supply direction, to maintain a sustained competitive advantage in the increasingly fierce market environment.
China’s auto parts industry to accelerate the pace of foreign expansion
The global financial crisis in 2008 brought a good opportunity for China’s parts and components enterprises to develop abroad. As the European and American parts industry suffered heavily in the global financial crisis, a large number of enterprises appeared in the phenomenon of production stoppage, production reduction, and even bankruptcy. And China’s parts and components enterprises benefited from the rapid rebound of the domestic auto consumer market, the short-term return to normal operations, domestic parts and components enterprises have tried to seek cooperation and mergers and acquisitions in the global scope of the opportunity, and at the same time, a large number of excellent talents in the international market to expand the strength of research and development. With the expansion of the layout of domestic parts enterprises in the international market and technological upgrading, China’s parts and components enterprises in the export of vehicle supporting market have broad prospects for development.
Overview of automotive forging parts
As the basis of the automotive industry, a wide range of automotive parts, from the production process, including casting parts, forging parts, stamping parts, injection molding parts, etc., which use the forging process to manufacture automotive forgings are generally used to withstand the impact of alternating stress of the working environment, in the automobile plays an important role in driving.
The basic concept of forging
Forging refers to the role of pressurized equipment and tools (molds) so that the billet or ingot to produce partial or total plastic deformation, obtain a certain geometric size, and shape of the parts (or blanks), and improve the performance of the processing technology.
Forging is essentially the use of plastic deformation of metal to make the metal blank to change the shape and properties and become qualified forgings of the process, the fundamental purpose is to use the applied load (impact load or static load) through the forging equipment to make the metal blank to produce plastic deformation, to obtain the required shape and size of the forgings, and at the same time to make the forgings of the mechanical properties and the internal organization of the forging in line with certain technical requirements.
Metal materials after the forging process, shape, size stability, uniform organization, and fiber organization are reasonable, with outstanding comprehensive mechanical properties. Mechanical equipment in the main load-bearing structure or secondary load-bearing structure is generally forged, forgings are also widely used in the national economy and defense industry in various fields.
The main raw materials for forging are metal bars, ingots, and so on. These raw materials in their smelting, pouring, and crystallization process, will inevitably produce porosity, shrinkage, and dendritic crystal defects, the casting process is difficult to manufacture the need to withstand the impact of alternating stress of the working environment of the parts (such as wheel bearings, transmission spindles, rings, connecting rods, ball head, etc.). Metal bar or ingot after the forging process, its organization, and properties can be effectively improved and enhanced. Plastic deformation and recrystallization of the metal, so that the coarse grain refinement, gets a dense metal organization, thereby improving the mechanical properties of forgings. In mold design, the correct control of the force direction of the parts and fiber tissue direction can also improve the impact resistance of forgings.
Forging process classification
According to the size and shape of the forgings, the use of tooling mold structure, and forging equipment, forging is mainly divided into free forging and die forging. Free forging refers to the use of simple general-purpose tools, or the forging equipment between the upper and lower anvil directly on the billet to exert external forces, so that the billet deformation and obtain the desired geometry and internal quality of the forging processing methods. Free forging produces a small batch of forgings, mainly using forging hammers, hydraulic presses, and other forging equipment to form the billet processing. Die forging refers to the metal billet in a certain shape of the forging die chamber pressure deformation and obtaining forgings, die forging is generally used in the production of small-weight, large quantities of parts.
The temperature of the billet in processing can be divided into hot forging, warm forging, and cold forging. Hot forging refers to the recrystallization temperature above the use of external forging, resulting in material deformation and plasticity. Warm forging refers to the recrystallization temperature at a suitable temperature below the metal forging. Cold forging refers to the room temperature state of the metal material for pressure processing. The application scope of the three forming processes is different, in which hot forging is mainly applied to wheel hubs and gear blanks, steering knuckles, ball tie rods, high-pressure common rail, crankshafts, connecting rods, and so on.
The main characteristics of the forging process
The forging process has the advantages of high production efficiency and strong comprehensive performance of forgings in the process of processing parts, so it is widely used in key and core parts in automobiles, equipment manufacturing, and other fields. The forging machining process is mainly characterized by the following features:
Processing equipment specialization
The forging production line is characterized by large investment and a long construction period. For the characteristics of forging materials, forging processing equipment must have high performance, therefore, forging enterprises usually need to invest a lot of money to purchase specialized design software, high-precision CNC forging equipment, high uniformity of heating equipment, high-performance heat treatment equipment, CNC machining equipment and complete sets of physical and chemical testing equipment, etc., to meet the different production processes and downstream customers on the requirements of production.
