It is understood that on July 30, "Fortune" magazine announced the 2020 China Top 500 list, of which a total of 23 auto and parts companies were on the list, one more than in 2019. Among them, the number of automobile manufacturers reached 18, and the number of parts manufacturers reached 5. The total operating income of these 23 companies reached 50.5 trillion yuan, an increase of 11% over last year; net profit reached 4.2 trillion yuan, an increase of 16% over last year.

From the profit point of view, only six enterprises, including Weichai Power, Jianghuai Automobile, BAIC Foton, Ningde Times, Jiangling Automobile and Xiamen Jinlong, have seen their profits rise, while the profits of other enterprises have declined. It can be seen that the parts enterprises with strong strength are still ahead, while most domestic parts enterprises are affected by the special environment, and the profit statement line is not very optimistic, so put forward an idea, can small and medium-sized enterprises adjust their strategies to go abroad and face overseas?

First understand the recent hot spots, China in 2019-2023 in batches to fully implement the six emission standards, the main engine plant through the engine body and post-processing upgrade to achieve, drive the industrial chain upgrade. Front-end processing is mainly engine power technology, how to achieve efficient energy conversion, including engine management system, EGR and cooling fan, etc.; post-processing is mainly for the oxidation-reduction treatment of exhaust gas, including SCR, DPF, DOC POC and ASC, etc. The main consideration is the commercial vehicle and some light-duty gasoline vehicle (non-passenger vehicle) markets, mainly because some domestic parts companies have already occupied a high market share in the commercial vehicle sector and can fully benefit from the market increase brought about by the emission upgrade.

In the parts industry, on the one hand, the parts market has experienced a golden period of double-digit growth in the past ten years; on the other hand, the individual performance of enterprises is polarized, and the market and financial performance of emerging parts suppliers are better than Traditional suppliers have shown greater difficulties in upgrading technology to maintain balance of payments under multiple pressures.

For the National VI era, it is undoubtedly an upgrade of the challenges and difficulties for the automotive industry, but the true meaning of adversity, so that it can better long-term survival and development. This year is a changeable year, and many partners have fallen as they walk., China's automobile industry is undergoing a stage of transformation driven by factors such as policy and technology. At present, the auto parts of all countries in the world have China's participation and support. Under the premise that the epidemic is not over yet and the foreign politics and economy are unstable, the current domestic economic system operation tends to be stable in a short time, which is still worthy of some parts enterprises. In my humble opinion, in fact, under normal circumstances, exporting parts is a regular and stable channel for enterprises, it not only expands the popularity of the enterprise but also extends the sales chain of the enterprise. It is not easy to obtain without imagined difficulties. The benefits can be beneficial and avoid risks. Under the change of a certain environment, the risks can be transferred and the self can be preserved. The bad thing is that the different ideas of various countries and the political interference with the economic situation are easily affected by the trade disputes in the general environment. Whether it is overturning the clouds or overturning, all should make their own plans according to the characteristics of the enterprise, just like the players in the housing market and the stock market flow with each other, not blindly and drifting with the flow.

In the future, with the gradual recognition of new energy vehicles by the market and the integration and coordination of new technologies, the market is expected to usher in a new growth period. With the improvement of national and local environmental protection policies year by year, the parts industry, especially the traditional parts, is challenged by environmental compliance and bears the rising environmental protection costs year by year.