The auto parts companies are constantly busy with their investment expansion. What are the "mysteries" behind the growth in performance?

Research data shows that in the global automotive industry value chain, the value of the parts and components industry exceeds 50%. In developed countries, the output value of auto parts is generally 1.7 times that of whole vehicles. In the Chinese market, car consumption accounted for 10.8% of the total retail sales of consumer goods in 2015, of which components accounted for more than 40% of the total car consumption. In short, for the Auto Parts industry, the automotive industry seems to have no lack of opportunities for development. Even in the recent two years when the industrial transformation has accelerated and the auto market has slowed down, this area has continued to grow steadily under the drive of the whole vehicle.

Then, what are the concrete performances of the auto parts companies that are deeply involved? Recently, Gasgoo reporters interviewed Mr. Lon Offenbacher, President and CEO of Entan Hua, the world’s top 100 auto parts supplier, for the development of the current auto parts industry and related companies’ performance in them. In-depth discussion and exchanges.

Mr. Alan Lang, President and CEO of Entanhua

With considerable increase, spare parts companies are busy expanding their investment.

There is no doubt that in the process of industrial change, some small, scattered, chaotic, or weakly powerful enterprises are inevitably stricken. However, those companies that are capable of remaining can do their job and gain a lot.

As one of the members of the company, Entanhua has also been able to be described in the automotive industry for many years, setting a lot of great achievements. According to relevant data, it now has 43 institutions, 90 customers, and 15,000 employees in 18 countries on five continents. In addition, it has created many "firsts" in technological innovation. For example, A company introduced the glass lifter motor anti-clamping technology to the market, and the first company introduced the sunroof glass edging technology to the market.

Based on the above, in the past 10 years, Entan Hua has achieved leaps and bounds. Mr. Lang Aofan revealed in an interview that the global business of Entanhua maintained a sustained growth in FY17, and it is estimated that there will be approximately US$3 billion in sales during the year, and when the company was established in 2008, the company’s sales were approximately One billion US dollars. In other words, in nearly 10 years, Entan Hua achieved a sales growth of about 2 billion US dollars, which is very impressive.

“The company’s four business areas of closure, interior trim, motor and electronics, and sunroof are all growing, especially in China.” Mr. Lang proudly disclosed his confidence in the Chinese market in his speech. In fact, En Tanhua, who has entered the Chinese market for many years, has already discovered the potential of this market. The reporter learned from the interview that the sales of the Entan Chinese market in 2017 have achieved substantial growth compared to 2011, and sales have increased by about 2.3 times in six years. Like many companies in rapid development, based on the existing product demand and good predictions for the market, Entanwa has started a new round of investment expansion. In fact, this company's investment expansion has barely stopped, especially in China.

It is understood that at the beginning of the establishment of Entanhua, there was only one factory, and as of this year, the number of factories in the company has increased to nine in China. Not only that, last year, Entan Hua also expanded Zhenjiang factory, the factory area is about 4 times the area of ​​the previous factory. In the next year, it will not only build two new factories in Yantai, Tianjin, but will also relocate its Wuhan plant. This shows its emphasis on the Chinese market. "We are very excited that the growth of NTU is very rapid in China. Whether it is building a new factory or expanding it on the basis of the original, it is all to meet the capacity demand brought about by the company's business growth, which is the growth within our capabilities. Non-blind expansion.” Mr. Lang proud of this.

In addition to investment expansion, mergers and acquisitions are also a major way for companies to expand their distribution and upgrade their capabilities. In fact, industry insiders who are familiar with Entanwa should know that in 2011 Entanhua Group expanded its global presence by acquiring Arvin Meritor's body division. It can be said that the reason why Entan Hua has achieved today is not unrelated to this acquisition. Mr. Lang Aofan said: “En Tanhua has always been concerned about many of these opportunities, and we are also conducting related assessments. We believe that this is not a simple trading relationship, but also relates to the business integration and cultural integration in the later period. In all aspects, we must choose very carefully. In short, we do not want to be the biggest, but we must become the best company."

Behind the growth: products, products, or products

Products are where the company's important competitiveness lies. To a certain extent, the above mentioned investment expansion is to meet the demand for product development and production, and the merger and acquisition is for product innovation and product line expansion. In other words, no matter which of the above methods, the parts and components companies ultimately want to meet the market demand for parts and components.

Today, due to changes in the automotive consumer groups and environmental issues, auto parts products are quietly changing.

Relevant data show that the proportion of “after 80” and “post-90s” among the consumers of automobile products in China has exceeded 53% in 2013, and “95 after” and “after 00” have great values ​​and consumption patterns in a unique growth environment. change. Younger consumers pay more attention to simple and practical, advocating intelligent and technological configuration, and have higher requirements for driving comfort, power performance, intelligent experience, and fuel economy.

Mr. Lang Aofan said that there is no doubt that whether the traditional fuel vehicles or new energy vehicles, whether automatic driving or not, the future of the car for automotive interiors, closed systems and many other automotive parts demand will exist. At the same time, the requirements for intelligent experience, driving comfort, fuel economy, etc. will gradually increase, which means that auto parts will have to be innovative. What is worth mentioning is that based on the improvement of energy-saving demand, auto parts must be lightweight.

“Entanwa started to do this work before lightweighting becomes a trend. Today, all product lines are being researched and developed in light weight, and many of the latest technology products have been applied to existing vehicles.” Mr. Lang Aofan introduced that the four businesses of Entan Hua's closed, interior, motor and electronics, and sunroofs accounted for 39% of the sunroof business, 33% of interior systems, 21% of closed systems, and 7% of electrical and electronic systems. . There are no lightweight solutions in these major product areas.

In the interior material segment, NTU developed a revolutionary TPO material: InteatherTM. This material is not only lightweight, but also has a variety of superior performance and can be recycled. It is worth mentioning that the use of this lightweight material has resulted in a 40% weight loss for customers; at the same time, in order to meet the more stringent weight requirements of customers in terms of window lifters and door modules, Entan China has developed the latest Composite Window Regulator and Integrated Mini Module. Especially, the door module adopts an integrated injection molding process and lightweight materials, which can not only reduce weight for customers. 30% also simplifies the customer's assembly process and increases the productivity of the production line. In addition, lighter research work on the frontier of motors and door locks is also underway.

Of course, as mentioned above, not only is it lightweight, but the demand for product quality and cost in the market requires the multidimensional innovation and development of parts and components companies.

It is not difficult to see from the proportion of the aforementioned business that the skylight business can be described as the highlight of NTU. According to the data, the product line of Entan Hua sunroof includes ordinary skylights, panoramic sunroofs, and structural integrated panoramic sunroof modules, which can meet the requirements of light weight, low noise, large space, and high strength. It is worth mentioning that the company and Daimler developed a structural integrated panoramic sliding sunroof for the GLE Coupe. This sunroof can be mounted to the body as a whole, without the need for complete vehicle integration. It is understood that precisely because of such an epoch-making product, Entanhua and Daimler were nominated this year and won the 2017 European Association of Automobile Parts International Innovation Award.

All in all, in the process of reform and upgrading of the automotive industry, although the auto parts industry is challenging, there is no shortage of opportunities. The growth of the performance of parts and components companies is the best proof. Stealth behind corporate growth is not only the strategic vision of the company, but more importantly, breakthroughs and innovations in the product.

In addition, it is worth noting that in the wave of new energy vehicles, autopilot and other industries, the industry's eyes seem to be overly focused on the power system and software innovations. However, it cannot be overlooked that with the changes in the automobile consumer groups, the appearance and comfort of cars are increasingly affecting consumers’ decision to purchase cars, and related parts and components products are ushering in more vehicle companies. Pursuit, also need the key layout of parts and components companies.