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Newspaper News (Reporter Jiang Zhongyi) “Jinhua has initially passed the acceptance of China’s auto parts (transmission gears and gears) industrial base (hereinafter referred to as “China’s automobile transmission gear and gear industrial baseâ€). Next, the relevant national ministries and commissions will give a grant to Jinhua City. In the afternoon of the day before yesterday, at the expanded meeting of the executive director of the China Auto Parts Co-operative Group held in Yiwu, Chairman Tian Yamei revealed such a message to the participants.
This industrial base is not Jinhua.
As early as two years ago, the Jinhua municipal government focused on the application of the Chinese automotive transmission gear and gear industrial base. From the first half of last year, a group of experts, including Luo Jian, Deputy Secretary-General of China Auto Parts and Marketing Group, went back and forth between Jinhua and Beijing, and accepted the declared projects one by one. Yesterday, Luo Jianli, deputy secretary-general, said that so far, the acceptance of China's automobile transmission gear and gear industrial base has entered the final stage, and all indicators of the city have reached the requirements of the industrial base.
Jinhua’s gearbox manufacturing for automobile transmission started in the 1960s and 1970s. It has grown to more than 400 manufacturing companies with an annual output value of over 1 billion yuan. The gearbox gears produced account for more than 70% of the country’s total sales. .
Luo Jianli, deputy secretary-general of the China Auto Parts Co-operative Group, said that Jinhua has now formed an automobile gearbox gear cluster. Nationwide, Jinhua has the largest number of automotive gearbox gear companies and the highest output of automotive gearboxes and gears. Among the country's automotive gearbox gear and private enterprises, Jinhua has emerged leading enterprises such as Zhejiang Dongfeng Gear Co., Ltd. and Jinhua Qinghua Industrial Co., Ltd. At the same time, Jinhua has formed an automobile gearbox gear production base centered on Jinhua City, supplemented by Wuyi, Yongkang, and Yiwu. Jinhua City's Dongfeng, Jinhua Gear, Tsinghua, Xinhua, Donglian, Lida and other large-scale enterprises, the total annual output value has exceeded 600 million yuan. Dongfeng, Xinhua and other companies will also sell products to countries such as Italy and Russia. It should be said that from a nationwide perspective, China's automobile transmission gear and industrial base is none other than Jinhua.
Starting from low cost
In the business card holder of Jinhua Lida Gearbox Factory Director Dai Jinfang, there are business cards of auto dealers across the country. In Jinhua City, his company's output value is still less than Dongfeng, Tsinghua and other companies. However, among the national counterparts, many people know that Jinhua Lida Gearbox Factory is the governing unit of the National Auto & Motorcycle Traders Association.
According to Dai Jinfang, only his company can produce more than 400 types of automotive transmission gears, including JAC series, Dongfeng series, and Isuzu series.
He told reporters yesterday that Jinhua was able to form the automobile transmission gear industry cluster, the main reason being that it was relying on low-cost operations to defeat its opponents. Within the scope of Jinhua, automobile gearbox and gear manufacturing enterprises in Jinhua, Yongkang, Wuyi and Yiwu have formed a symbiotic relationship with each other, and hundreds of Spare Parts needed for gearboxes can be found in Jinhua. As companies are not far apart from each other, they have greatly facilitated the exchange of information, spare parts transportation and talent flow. This convenience also directly led to the formation of a low-cost production base for the manufacture of gears for automobile transmissions between Jinhua downtown, Yiwu, Yongkang and Wuyi. Therefore, throughout the country, the peers are aware that the wholesale price of Jinhua Automotive Transmission Gear will generally be 10% to 30% cheaper than other places. This low-cost advantage has enabled Jinhua Automotive's gearbox and gear industry to develop rapidly and gradually become the leader in the national counterparts.
Awarded base will bring new opportunities to Jinhua
Relying on low-cost strategies to expand the market is indeed very effective in the initial stage of product operation. However, when the national automobile transmission gear market is basically mature, low-cost expansion will lose its charm, and Jinhua Automobile's gearbox and gear industry should develop to a higher level. So far, Jinhua Automobile Transmission Gear Company has not yet produced a gearbox gear for passenger cars. Only Tsinghua University has begun research and development of manual transmissions and automatic gearboxes for passenger cars.
Yesterday, Luo Jianli, deputy secretary-general of the China Auto Parts Sales Group, stated that more than 97% of Jinhua’s automotive transmission gears were sold domestically and could only be regarded as domestic automobile gearbox gear production bases. Some experts predict that by 2010, the total trade volume of global automotive products will reach 1.2 trillion US dollars. The auto industry giant is expected to reach US$50 billion in spare parts purchases in low-cost countries by 2007, 70% of which plan to target China. market.
The China Association of Automobile Manufacturers also expects that from this year to 2010, China's auto parts exports will increase at an annual rate of 35% from last year's $6.1 billion to $40 billion. After China’s automotive gearbox and gear industry base is declining to Jinhua, the relevant national ministries and commissions will increase support for Jinhua, carry out industrial upgrading of Jinhua’s transmission gear and gear production base, and gradually transform it into a production and export base for gearbox gears for trucks and cars. Targeting products to the international market to attract more international buyers to Jinhua to purchase products.