Zongshen enters the auto parts market to grab the German rice bowl
Zongshen Jin entered the auto parts market and seized German market shares by leveraging its competitive advantages. While Lifan and Loncin were busy expanding their motorcycle manufacturing, Zuo Zongshen quietly positioned himself as a major player in the automotive industry. Recently, the Zongshen Group announced that its patented "Automobile Inlet Plastic Manifold" has successfully passed national certification. This achievement marks a significant milestone, as it allows Zongshen to take market share from German suppliers with its own intellectual property and cost-effective production.
According to reports, Zongshen began targeting the auto parts sector as early as 2002, when it imported a Korean-made plastic intake manifold production line. This move not only filled a domestic gap but also allowed some of its products to be used by Hyundai in South Korea. Compared to traditional metal components, plastic parts offer benefits such as reduced fuel consumption, improved engine performance, better cold-start capability, and lower noise levels. International car manufacturers like BMW and Nissan have already adopted similar technologies in their new models.
Zongshen's export price for Hyundai parts is only $18 per unit, significantly lower than the German alternatives—less than one-third the cost. This cost advantage, combined with proprietary technology, has earned strong support from Hyundai. While Lifan and Loncin focused on整车 (complete vehicles), Zongshen chose to specialize in auto parts, particularly engine components. The company believes that in the parts sector, especially with weak domestic capabilities, it’s difficult to compete directly with global automakers. Therefore, Zongshen opted to become a key supplier before eventually entering the vehicle manufacturing space.
Zuo Zongshen emphasized that the core of a car lies in its engine, and building a successful vehicle requires mastering engine technology. The group’s investment in developing key engine components is aimed at laying the foundation for future full-vehicle production. It is reported that several models, including Wuling Zhiguang, Hafei Zhongyi, and Changling Wang, are already equipped with Zongshen auto parts, signaling a growing presence in the Chinese automotive supply chain.
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