Delphi Michelin Beijing: Can't Divide the Chinese Market

Perhaps it was a coincidence that Delphi, the world's largest parts supplier, and the Michelin Group, the global tire giant, gathered in Beijing in early April. On April 5th and 6th, the reporter interviewed David Wuling, Delphi Global Vice President, and Zu Jie, Chairman of Michelin (China) Investment Co., Ltd. They both revealed a strong signal: the Chinese market for international auto parts companies. , has become more and more important.

Market development greatly exceeds estimates

David Vaughan: The Chinese market is growing rapidly, greatly exceeding our original estimate. Delphi has a 10-year history in China, and its business development is basically increasing at an annual rate of 30% to 35%. Last year we witnessed an unprecedented growth of 50%, and this year's growth will not be less than 30% to 35%. The rapid growth of the Chinese market has also brought more development opportunities to Delphi. Last year, Delphi’s total purchase in China was US$250 million, and by 2007 it will reach the goal of purchasing US$1 billion. At the same time, Delphi will further work on the development and management of suppliers. Once Delphi strengthens its suppliers, the most direct beneficiaries will be automotive customers.

Zu Jie: In the past, China’s automobile models could be counted with one hand. The market’s requirements for tire types and technologies are relatively simple. Since 2001, China’s automobile market has continued to “blowout”. In the last year alone, China has introduced more than 40 models. At the same time, the tire requirements of the Chinese market have become increasingly diversified. The demand for tires has doubled in geometric progression. increase. This gives Michelin tremendous opportunities for development. At present, the Michelin Group has successfully acquired the Pull Back brand; it has also launched “Bai Lu Chi” for the newly-increased young Chinese. These two brands, together with Michelin, formed a low, medium and high market layout in the Chinese tire market. At present, both Pull back and Michelin tires rank first in their segment market.

The latest technology in the world brought to China

David Vaughan: Delphi will continue to maintain its leading position in China and must speed up the introduction of products. In addition to meeting the market demand, Delphi also considers introducing ABS, airbags and other components with considerable technical content into China. In addition, we have begun to establish a dedicated technology research and development center, which currently has more than 100 engineering and technical personnel. Delphi will use local talents from home, through training, and undertake certain business projects to make it master the world's most advanced technology. After the Technology Research Center began its operation in July next year, the number of people will gradually expand to about 1,500, and Delphi's global development research will be conducted.

Zu Jie: At present, the number of high-end cars such as Porsche, BMW and Mercedes-Benz in China is also rising. Special vehicles must have special tires to support them. For this reason, Michelin will bring its Pilot, the latest tire product developed and researched in the world, to China. At present, Michelin is the first and only tire manufacturer to introduce its green technology into China and localize its production. In the future, Michelin will continue to introduce newer and better products to China.

"Made in China" Must Inevitably Enter the Global Market

David Vaughan: Over the past few days, my colleagues and I have been conducting investigations in China and elsewhere in the Asia-Pacific region. I am glad to see that after 10 years of development, Delphi has established its leading position in China. As the world's largest component supplier, Delphi will further deepen its business in China, realize the advanced technology brought into China after manufacturing, and then export it, becoming an integral part of Delphi's global strategy. Delphi has now started the relevant process. For example, Delphi recently established a new factory in Suzhou, which mainly produces car audio systems. The products not only meet the Chinese market but also export to the international market. At present, 20% of products manufactured by Delphi China are exported. In the future, the relevant export volume will also continue to increase.

Zu Jie: Michelin has taken root in China for 10 years. He invested 150 million U.S. dollars in Shenyang and 200 million U.S. dollars in Shanghai. In the next few years, Michelin will invest hundreds of millions of dollars. Pull back is a successful acquisition of Michelin. Michelin will further mergers and acquisitions in the future. The success of Michelin is not accidental. It invests 5% of its annual sales in R&D. It has R&D centers in China, the United States, and Japan. It has hundreds of creative engineers and designers and experienced tire testers. Every year, technicians and technicians carry out road tests that have accumulated more than one million kilometers. Michelin has developed very rapidly in China last year. It will also develop the Shanghai base into one of the largest production bases in the world to meet the needs of the global market.

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