Automotive products of the enterprises to adopt different standards, different series, and the local parts and components product standardization, serialization, the low level of GM, has seriously hampered its development. In addition, the export structure of the "three low and one high", that is, low value-added, low technological level and low prices, high energy consumption, resulting in exports of poor efficiency, competitiveness is not strong. With the components of transnational companies to enter local auto parts production cost control increasing pressure, profit margins are also increasingly narrow.
Data showed that the German public procurement in 2006 in China's auto parts amounted to 1 billion U.S. dollars, but the key parts assembly plant for the general public and supporting domestic enterprises in the wholly-owned or controlled. Car parts and components supporting the Guangzhou market, it was almost monopolized by Japanese. Despite the global ranking of the top automobile manufacturers, their parts and components made rate was only about 30%, but the enterprises and supporting their interests in the same chain, its symbiotic relationship is quite clear.
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