"Astronomical" ticket or cited auto parts industry changes

Recently, the National Development and Reform Commission penalized 83.196 billion yuan in the price monopoly of Japan's Sumitomo and other eight parts and components companies, and punished 40,44.4 million yuan in fines for price monopolization of four bearing companies such as Seiko Japan, resulting in a total fine of 1.235 billion yuan . With the release of anti-monopoly fine price bills, the market mainstream organizations agreed that the anti-monopoly investigation for the sales and maintenance of luxury cars will be further advanced, and the follow-up will have a profound impact on the automotive industry. Analysts pointed out that this "high price" ticket will not immediately change the model of car brand sales. In the short term, it will also drive down the price of parts and components to a certain extent, and reduce the profitability of parts and components companies; but in the medium to long term, domestic The gradual release of the after-sale system for parts and components will be a major aspect of the industry. This objectively constitutes a medium-term advantage for powerful domestic component manufacturers.

Anti-monopoly investigation

Development and Reform Commission opened a fare ticket

August was an eventful event for the automotive industry. Since the SND announced its anti-monopoly investigation of the automotive industry, the industry has been turbulent. The latest work carried out by the National Development and Reform Commission’s website yesterday showed that the National Development and Reform Commission recently penalized 83.196 billion yuan in the price monopoly of Japan's Sumitomo and other eight parts and components companies, and punished 40,344 million yuan in the price monopolization of four Japanese bearing manufacturers. The total fine was 12.354 billion yuan.

It was verified that during the period from January 2000 to February 2010, eight Japanese auto parts manufacturers, Hitachi, Denso , Aisin, Mitsubishi Electric, Mitsui, Yazaki, Furukawa, and Sumitomo, etc. were the most advantageous in order to reduce competition. The price received the automaker’s spare parts orders, conducted frequent bilateral or multilateral talks in Japan, negotiated prices with each other, and reached orders for quotation agreements several times and implemented them. The price negotiation involves the Chinese market and the orders received include 13 kinds of products including starters, alternators, throttle bodies, and harnesses.

From 2000 to June 2011, Fujitsu, Seiko, Jieteget, NTN and other four bearing manufacturing companies organized a research meeting in Japan in Japan and an export market conference in Shanghai to discuss the bearings in Asian and Chinese markets. Price hikes, timing and magnitude of price increases, and exchange price hikes. When the parties sold bearings in China, they conducted price increases based on prices agreed by the Asian Research Association and the export market, or exchanged price information.

The National Development and Reform Commission pointed out that eight auto parts companies and four bearing companies were involved in the agreement to implement and implement price monopoly agreements for auto parts and bearings, which violated China's "Anti-Monopoly Law" provisions, eliminated or restricted market competition, and improperly affected The price of China's auto parts, vehicles and bearings has damaged the legitimate rights and interests of downstream manufacturers and the interests of Chinese consumers. In the two cases, the parties reached and implemented price monopoly agreements on many occasions. The illegal activities lasted for more than 10 years. The illegal circumstances were serious. The National Development and Reform Commission punished them severely according to law, and applied the anti-monopoly to relevant parties who actively provided important evidence. Act to reduce or eliminate the penalty clause.

Parts industry or current changes

It should be said that the astronomical penalty bill issued by the Development and Reform Commission indicates that the decision-makers are determined to break the monopoly of the auto industry and it is expected that the follow-up survey on the anti-monopoly of the auto industry will be further deepened. As far as impact is concerned, this antitrust investigation will not have much impact on the whole vehicle level. After all, suppressing the price of the mainstream models of joint-venture car companies will also exert greater pressure on domestic independent brands; however, it will affect the auto parts industry. The impact is far-reaching.

Needless to say, the focus of the auto industry's anti-monopoly is in the spare parts segment. The focus is on abnormally high parts prices. In general, the zero-to-zero ratio in foreign countries (ie, the ratio of the sum of the price of the parts of a specific model to the sales price of the entire vehicle) does not exceed 300%, and the domestic zero-to-zero ratio usually exceeds 400%. The reason for the monopoly in this regard is that the “Implementation Measures for Automobile Brand Sales Management” has given the vehicle manufacturer a strong voice. According to the "Procedure", dealers need to obtain the authorization of the car manufacturer before they can register with the industrial and commercial department to obtain business qualifications, and require that the intellectual property rights of parts and components designed by the supplier belong to the vehicle manufacturer. This means that the parts of the 4S shop must all be obtained from the manufacturers, and the pricing of parts and components should be owned by the manufacturers. In order to make up for a series of costs for after-sales service, OEMs generally have a certain degree of price increase, which objectively leads to high prices of spare parts.

The reporter believes that in the short term, the industry's anti-monopoly does not change the model of car brand sales, but only to a certain extent, the prices of parts and components are depressed, which directly affects the profitability of the parts and components industry. However, in the medium to long term, the gradual release of domestic parts and components after-sales service system is an aspect of the parts and components industry, and it is beneficial to powerful domestic component manufacturers.

In addition, the anti-monopoly will have a profound impact on the automotive industry, mainly in the following points: First, the price of anti-monopoly will promote the overall price system of the auto industry to sink, the overall profit margin of vehicle companies will be under pressure; Second, the downstream distribution The status of the industrial chain of the business is relatively improved, and the bargaining power is improved. However, it is still too early to completely get rid of the constraints of the automaker. Third, the after-sales service market faces significant opportunities. With the deepening of anti-monopoly, after-sales service is especially independent. After the tripartite service market will gain room for growth.

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