On February 19th, Xu Kunlin, Director of Price Supervision, Inspection and Anti-Monopoly Bureau of the National Development and Reform Commission, stated that he was conducting an external investigation into the vertical monopoly of auto parts. A vertical monopoly agreement refers to an agreement reached between operators (such as producers and wholesalers, wholesalers, and retailers) at different stages of production or sales to eliminate or restrict competition. This is reminiscent of news reports about the monopoly of imported car accessories at the end of last year. In China, imported cars are sold from complete vehicles to original spare parts, and there is only a single 4S shop channel, so importers earn huge profits. Recently, Huang Yonghe, director of Automotive Industry Policy Research Office of China Automotive Technology and Research Center, revealed in a speech that the policy of monopolizing the auto parts purchase channel is expected to be broken. The legislature is advising relevant departments to make policy adjustments, formulate policies and regulations, break the monopoly of auto manufacturers on the original parts channels and restrictions on parts suppliers, and require auto suppliers not to restrict authorized suppliers to sell accessories externally. The reason is to restrict the parts suppliers from selling accessories to the outside, and shall not restrict the parts suppliers from using their own trademarks and logos on the accessories.
Eliminate monopoly monopoly pain <br> <br> comes to auto parts factory of auto products, especially imported auto parts profits repeated exposure. Huang Yonghe said that the legislature is advising relevant departments to formulate policies and regulations, requiring automakers not to restrict authorized suppliers to sell accessories externally, and that they must not restrict parts suppliers from selling accessories to outsiders without justified reasons. This is expected to break the original monopoly of auto parts and parts, and it will help the multi-channel circulation of auto parts, thereby reducing the price of imported parts. Many people in the industry believe that the "Administrative Measures for the Implementation of Sales of Automobile Brands" issued in 2005 should pay for the monopoly of imported accessories at the policy level. Because, this method points out that the vehicle supplier has direct control over the distributor of terminal circulation. The company has the right to request suppliers to provide spare parts resources for repair shops that are not authorized or have no operating conditions for the sales of automobile brands. As a result, imported cars are also highly monopolized not only in sales but also in post-sale maintenance and repair. “Such as spare parts supply is also highly controlled by foreign automakers, and can only be sold in 4S stores, and the price is multiplied several times. Another example is that automobile refinishing paint is only a few hundred yuan at ordinary auto repair factory, and it will be two or three times at 4S shop. Thousands of yuan, of which the profits are self-evident," an industry source introduced. A person in charge of an auto parts company once told reporters that they generally did not dare to do after-sales market, and all auto parts were all uniformly distributed to 4S stores by the original factory. If you enter the post-market, you are afraid that you will lose matching opportunities because you have to offend your car factory. Shen Jinjun, executive vice president and secretary-general of the Auto Dealers Association of China, said that there is only a single 4S shop channel from car sales to spare parts service, so the entire vehicle manufacturer has made the final decision on product pricing, spare parts purchase channels and business policies. It is easy to form a vertical monopoly. Huang Yonghe introduced that after the introduction of laws and regulations, all maintenance companies have the freedom to choose the right original parts or quality parts. The law prohibits car manufacturers from restricting the following three types of behavior: 1. The accessory manufacturer sells accessories to an independent aftermarket. 2. Authorized dealers and authorized repairers sell accessories to independent repairers. 3. Authorized maintenance personnel obtain original parts and quality equivalents from the independent aftermarket.
Parts manufacturers are expected to be "famous"
The lack of discourse power of auto parts enterprises in communicating with vehicle companies is a pain point for auto parts companies. In particular, some local auto parts brands have even lost the right to mark the brand on the product. Only behind the entire vehicle company can "silently" contribute. Once cross-border auto parts companies are supporting auto companies, automakers have widely promoted this as a selling point. Huang Yonghe introduced that the new legislation will break this situation. Legislators suggest that auto parts manufacturers will have the right to use their own trademarks on products provided for automakers, which means that they provide accessories for automakers. Use dual trademarks of yourself and your vehicle manufacturer. However, the accessories sold to the independent after-sales market can only use their own trademarks, or with the consent of the automobile manufacturer, the words applicable to a particular brand of a certain brand can be marked. This is undoubtedly good news for companies that expect to come out in the post-market. Not long ago, the head of a manufacturing company in Yuhuan County, Taizhou City, Zhejiang Province, who also specializes in aftermarket products, spoke to reporters: “Auto parts companies cannot establish brand awareness and cannot change the post market chaos. Currently, due to the parts and components companies Can not be marked on the product brand, after the market is full of many 'Mercedes' brand, 'BMW' brand of counterfeit and counterfeit parts. Snoring can only be serious brand."
After the expected specifications for automotive after-market chaos <br> <br> market expectations of 700 billion yuan so many aftermarket auto parts enterprises Nuggets prohibitive or playing with toys. In an interview in Yuhuan County, Zhejiang Province, more business people went straight to the point: “Medium-sized auto parts companies prefer to sell their products abroad under the pressure of appreciation of the renminbi, and they are unwilling to expand the domestic aftermarket. Not because they do not want to, but because of the aftermarket. There is no standard at all, and it is filled with a batch of inferior goods with low quality and low price. The medium-sized enterprises cannot fight brands and can not fight prices with small workshops.†Huang Yonghe said that at present, the policy development department is studying the maintenance of spare parts. Definitions and standards, taking product quality, technical standards, and intellectual property rights as the core conditions of the definition, improve the definition of original parts, auxiliary parts, and repair parts in the current automotive repair service specification, and adopt industry standards. The department rules and regulations are announced to promote the circulation of repair parts. People in the industry believe that the introduction of definitions and standards allows vehicle maintenance companies to have standards that they can comply with, and it is hopeful that solutions to the complications in the parts retail market can be expected.
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