October 17, 2025
International parts and components companies take the low-cost route to seek independent brand support
In the wake of the global financial crisis, markets across Europe, the United States, and Japan have continued to experience a downturn, marking one of the worst periods in over a decade for the automotive industry. Faced with such challenges, international auto parts suppliers are increasingly turning to China's growing automotive market for stability and growth. Several multinational companies are now seeking opportunities within joint ventures to support their own brands, aiming to strengthen their foothold in this dynamic region.
At an event showcasing its driving safety technologies, a representative from the Chassis and Safety Systems Department at Continental Group revealed that the company has significantly reduced costs by redesigning hydraulic brake systems manufactured in China. This cost-cutting strategy has allowed them to lower product prices and attract more local customers.
Industry insiders who once worked for international parts manufacturers note that multinational corporations are now actively entering Chinese auto brands, focusing on low-end segments. With competitive pricing and advanced technology, these foreign firms are gaining traction among domestic buyers. This shift is expected to create significant pressure on China’s existing low-end component manufacturers.
Major players like Delphi, Bosch, and Denso have also announced plans to develop affordable, high-value products aimed at supporting Chinese automakers. These new offerings, referred to as "economic products," are designed to meet different market needs while maintaining a balance between cost and quality. Compared to traditional low-end components, these products offer better technology and reliability, even if they are slightly pricier.
Continental Group, which holds a substantial share in the brake system market, has been focusing on joint ventures in China. Its Shanghai-based R&D team recently redesigned key components such as calipers and vacuum boosters/brake master cylinders. In July, the company launched mass production at its plant in Changshu, Jiangsu. According to sources, the redesigned products have achieved a 15% reduction in manufacturing costs compared to previous versions.
Despite the dominance of companies like China Tianhe, Bosch, and others in the brake system market, many self-branded automakers still rely heavily on domestic suppliers. To secure contracts with these brands, international suppliers are lowering their prices, making this a key competitive strategy in the evolving market.
Continental Group has already secured orders to supply brake calipers and 10-inch vacuum boosters/brake master cylinders for a compact sedan produced by an independent brand with an annual output of 80,000 units. The components will be manufactured by a joint venture between Continental and Shanghai Automotive. The company reported that it holds a 16% market share in brake calipers and 20% in vacuum boosters in China. New product lines are currently being finalized for launch.
Industry analysts suggest that multinational auto parts companies previously underestimated the potential of Chinese automakers, believing them to be small-scale and price-sensitive. However, with the rapid growth of the Chinese market and increased exports, these giants are re-evaluating the importance of supporting independent brands.
Additionally, foreign parts companies often hold technological advantages. Once a product is successfully developed and launched, it can significantly impact the existing component suppliers that have grown alongside Chinese automakers. This trend highlights the ongoing transformation of the auto parts industry in China.
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With the continuous advancement of technology, steel products are also constantly innovating and developing. New types of alloy steel, stainless steel and other materials are constantly emerging. On the basis of maintaining the original advantages of steel, they also possess more special properties, such as corrosion resistance and high-temperature resistance, further expanding the application fields of steel products.
Steel products, with their outstanding advantages such as strength, wear resistance, processability and stability, have become an important support for the development of modern society. It not only shapes the material world around us, but also promotes the progress of science and technology and the development of human civilization. In the future journey, steel products will continue to play an important role and create a brighter tomorrow for us.
The remarkable advantage of steel products lies in their unparalleled strength and hardness. Steel contains various alloying elements such as carbon. Through special smelting and processing techniques, it acquires extremely high strength and is capable of withstanding tremendous pressure and weight. In the field of construction, steel is the core supporting material for grand buildings such as high-rise buildings, Bridges, and large sports venues. For instance, those skyscrapers that soar into the clouds can stand firm in the wind and rain precisely by relying on the powerful support of the steel frame. Bridges spanning rivers, lakes and seas, with steel beams and cables made of steel, shoulder the responsibility of facilitating the passage of vehicles and pedestrians, ensuring smooth traffic. In industrial manufacturing, steel products are widely used in the production of mechanical equipment, molds, etc. They can withstand high-speed operation and huge impact forces, ensuring the stability and efficiency of production.
Steel products have excellent wear resistance and fatigue resistance. In some harsh working environments, such as in mining, metallurgy, construction machinery and other fields, equipment needs to withstand high-intensity friction and impact for a long time. Steel products, with their excellent wear resistance, can maintain stable performance in such environments, reduce equipment wear and damage, and extend service life. Meanwhile, the fatigue resistance of steel makes it less likely to crack or break even under repeated force, ensuring the safe operation of the equipment.
Steel products also have good machinability. It can be processed into products of various shapes and specifications through multiple methods such as forging, rolling and welding. This enables steel to meet the diverse demands of different industries and fields. In manufacturing, steel can be processed into precise components and used in high-end industries such as automobiles and aerospace. In daily life, steel products are everywhere. From knives and tableware in the kitchen to the metal frames in furniture, the presence of steel is indispensable.
The stability of steel products is also one of its major highlights. It can maintain relatively stable physical and chemical properties under different temperatures and environmental conditions. Whether in the extremely cold Arctic region or the hot desert area, steel products can be used normally and will not show obvious deformation or performance decline due to temperature changes. This makes steel play an irreplaceable role in engineering construction and equipment manufacturing under various extreme environments.
With the continuous advancement of technology, steel products are also constantly innovating and developing. New types of alloy steel, stainless steel and other materials are constantly emerging. On the basis of maintaining the original advantages of steel, they also possess more special properties, such as corrosion resistance and high-temperature resistance, further expanding the application fields of steel products.
Steel products, with their outstanding advantages such as strength, wear resistance, processability and stability, have become an important support for the development of modern society. It not only shapes the material world around us, but also promotes the progress of science and technology and the development of human civilization. In the future journey, steel products will continue to play an important role and create a brighter tomorrow for us.
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