Market barriers to auto parts

A vehicle parts procurement system, barriers to entry

Matching relationship between Pyramid OEM and parts enterprises formed by the between vehicle and auto parts enterprises are fixed to each other dependence, the relationship is firm. New entrants to replace the original suppliers more difficult.

Two, quality system certification, process audit and product approval barriers

Host manufacturers of enterprise supporting parts to choose and control strictly. First of all, parts enterprises must establish an internationally recognized third party quality system, designated host manufacturers such as ISO/TS16949; secondly, to host manufacturers supporting parts factory in all aspects (such as the QCLDM- quality / cost / logistics / development / management five) strict audit and on-site scoring, finally, each manufacturing process audit; a product must go through strict quality audit, and after lasting product installed test.

Three, technical barriers

Auto parts production enterprises in the production process are mostly formed a unique production process, the production process to improve product performance, product reliability, production efficiency and reduce cost with a unique competitive advantage. In addition, OEM market requires that the supplier has a strong new technology, new product development ability, actively participate in the vehicle manufacturer's product development.