Because of geopolitical factors, or because of economic factors such as labor costs, the current supply chain around the world has launched a new round of transfer and adjustment, and the automotive industry is no exception.

This has raised concerns among some in the industry, but Fan Gang, vice-president of the China Association for Economic Restructuring and secretary-general of the China Reform Research Foundation, recently said publicly: "Chinese enterprises should follow this trend and see the positive significance and opportunities." He further explained that in the context of the decentralization of the industrial chain, regionalization and the great power game, a group of Chinese enterprises passively or actively "ahead" to go out, will enter the development stage of multinational companies faster. In fact, this trend is now in the field of auto parts in China, how should we look at this "passive" internationalization process?

"In fact, whether from the perspective of market development demand, or from the perspective of policy changes in various countries, auto parts to go out is a more realistic choice." Wang Qing, deputy director of the Market Economy Research Institute of the Development Research Center of The State Council, said in an interview with a reporter from China Automotive News that going out has become the trend of The Times, which is not only conducive to China's parts and components enterprises to better enter the supply supporting system of the international automobile industry chain, but also to provide better support for vehicle enterprises.

From "China's special supply" to the world

For a long time in the past, due to the late start of China's automobile industry, poor technology and weak foundation, the products of domestic parts enterprises are almost "China's special supply", which can only serve domestic automobile brands, and it is difficult to squeeze into the global supply chain of multinational automobile enterprises, especially the core parts such as engines and gearboxes. The world's leading core suppliers have been stable in the single digits all year round, and have accumulated decades of technical advantages to sit firmly in the position of the lake's boss, which is difficult to shake. In China's auto parts sector, only a few companies, such as Fuyao Glass, have the strength to build factories overseas to supply local auto factories.

However, an unprecedented, once-in-a-century technological shift has changed all that. With the rise of the wave of automobile electrification, intelligence and networking, the importance of the traditional core components of the engine and transmission began to decline, and instead, some new parts need to be met, such as power batteries, motors and electronic controls. As a result, in China, the world's largest new energy vehicle market, many new parts suppliers began to rise, such as Ningde Times.

The reason why BMW chose Ningde era may be simply because it is young and full of potential, and can grow together with BMW on the road of opening up electric vehicles. But there is no denying that this in itself is the opportunity given to Chinese parts companies by history. After entering the global supply chain, the market value of Ningde Times today has exceeded one trillion yuan, and it is the world's largest automotive battery supplier. In 2018, Ningde Times opened its factory in Germany, and on the same day, it received a purchase order of 4.7 billion US dollars from BMW.