In the past six months, the growth rate of China's auto market continued to slow down, the market space was shrinking, and the changes in the automobile market environment further intensified competition. The entire market was full of smoke, and multinational, joint venture, and independent auto companies competed in all directions. In order to gain a firm foothold in this war, independent brand car companies have pulled up the upward and high-end flag, although this allows independent brands to continue to increase market share in the first half of the competition, but it is more dependent on independent brands. High local parts companies bring a lot of crisis. Autonomous automakers who competed for high-end vehicles have chosen a route that highlights high-end products with ��brand-name�� components, which directly leads to a shrinking market space for local component companies.

Local enterprise strategic investment continues to strengthen, mergers and acquisitions or more

China's auto parts market will be more lively in the second half of the year

Under such circumstances, local parts and components enterprises have also launched a counter-attack road. Through strategic adjustment and investment, the road to transformation has been opened, especially in mergers and acquisitions and integration. In the second half of the year, the parts and components sector, whether it is the merger and reorganization of domestic enterprises or foreign mergers and acquisitions, the pace of integration will accelerate.

Transnational mergers and acquisitions speed up

According to statistics, in the first half of this year, there were three foreign mergers and acquisitions. Recently, China Aviation Industry Corporation, which was on June 30, acquired US-based German-German Automobile, which cost US$800 million and became the largest transaction for China to acquire the relevant assets of the US auto industry. Prior to this, on March 29, Weichai Power re-acquired a 4.95% stake in Kay's Germany for 187 million euros. After completion, Weichai Power's indirect shareholding ratio will reach 38.25%; March 23, China Chemical Rubber Co., Ltd. The acquisition of Pirelli with a total of 7 billion euros has made it the largest investment by Chinese companies in Italy.

The weakness of parts technology is not a cold day, but the counterattack is not a day's work, but the situation of domestic parts companies is extremely severe. Even if the vehicle sales market tends to grow at a low level, multinational parts companies continue to increase the layout. The domestic market further squeezes the living space of independent parts and components enterprises. Therefore, mergers and acquisitions may be the fastest way for independent enterprises to survive and enter the high-end market. The author believes that if you do not say absolutely independent innovation, now, live first. And to get the capital to continue to live is king.

Therefore, from the mergers and acquisitions of enterprises in the first half of the year, we can see that the initiative of M&A is strong. Then, this wind is likely to continue to blow. However, the issue of resource integration after overseas mergers and acquisitions will be a major problem. It is also hoped that enterprises will pay attention to potential risks and improve management capabilities, and truly control quality resources.