Anqingheng analyzes the pressures and challenges faced by automotive parts suppliers

In a recent symposium, Mr. An Qingheng, Director of the China Automotive Industry Advisory Committee, conducted an in-depth analysis of the price reduction pressure and market competition environment faced by auto parts suppliers. He mentioned that annual price cuts have become the norm in the industry, and the reasons behind this are complex, including industry reshuffles, the need for companies to continuously increase R&D investment, and difficulties in capital turnover. In addition, he also pointed out that the behavior of a few parts companies raising prices through technology monopoly has caused dissatisfaction among OEMs, who feel that the profits of supplier companies are too high and should be appropriately reduced.