Brief talk about the automotive wiring harness industry

The main body of the automobile circuit connection is the wiring harness, which is the carrier for transmitting electronic signals and electrical energy. It is mainly composed of wires, terminals, sheaths and other coverings. As the hub of information transmission, the wiring harness is related to the safety of the vehicle during driving and the reliability of electronic appliances. Automobile wiring harness products are customized products, and different automobile manufacturers and their different models have different design schemes and quality standards.

According to data, although the overall automobile sales in 2020 responded strongly after the outbreak of the epidemic, it is expected to continue to grow in the next few years. In 2025, automobile sales will exceed 30 million, the degree of electrification and intelligence will increase, and the proportion of wiring harness prices will increase year by year. It is estimated that by 2025, the market size of wiring harnesses will reach 130 billion yuan. With the deepening of industry competition, the following main characteristics are presented:

1. The strong cooperation between wiring harness factories and vehicle manufacturers has increased market concentration.
Most automobile manufacturers in the automotive industry have their own mature and stable automobile supporting systems. As far as the domestic wiring harness market is concerned, most large independent automobile manufacturers have local wiring harness manufacturers with stable supporting production, while foreign-funded and joint venture automobile manufacturers are mostly wholly-owned or joint venture manufacturers of international parts manufacturers in China, forming a stable relationship of long-term cooperation. However, in recent years, as international automobile manufacturers pay more and more attention to cost control, the localization of automobile parts procurement has been increasingly strengthened, which has brought opportunities to excellent domestic independent wiring harness companies. These high-quality local companies have significantly enhanced their overall strength through long-term accumulated product technology and synchronous development experience, as well as timely and effective services and reliable product quality. Gradually enter the supporting system of international automobile manufacturers.

2. The synchronous R&D capabilities of wiring harness factories are becoming more and more important.
The interface definition of automotive wiring harnesses involves every electronic system. The principle of the wiring harness is closely related to the electrical principle of the whole vehicle, so the design of the wiring harness is closely related to the vehicle manufacturer. In addition, the rise of global procurement of automotive parts and the industrial division of labor and cooperation between automobile companies and parts companies have forced automotive wiring harness companies to participate in the design and development of new models of automobile manufacturers. Synchronous development requires automotive wiring harness suppliers to integrate into the automotive supporting system, fully understand the standards, progress, quality and requirements of automotive design, and must cooperate with the automotive development progress according to the plans and time nodes of the automobile manufacturers, and timely launch automotive wiring harness design, verification and production solutions and final products. Therefore, in order to improve the vehicle support capabilities of automotive wiring harness companies, synchronous R&D capabilities are becoming more and more important.

3. Independent wiring harness companies have a leading advantage in the new energy field.
New energy vehicles have high driving voltages, and high-voltage wiring harnesses are required to connect various circuit units. High-voltage wiring harnesses are not only a key component of the high-voltage electrical system of new energy vehicles, but also an important guarantee for the safe and reliable operation of new energy vehicles. Chinese local wiring harness suppliers have taken the lead in entering the new energy vehicle supply system by virtue of their good supporting relationship with independent new energy vehicle manufacturers. Some high-quality wiring harness companies have made technological breakthroughs in the design and development of high-voltage wiring harnesses, and have leading R&D strength and huge development potential.

4. Domestic wiring harnesses are leading, and large-scale lean production has become the commanding heights of competition.
At present, although most domestic automotive wiring harness manufacturers are small in scale, weak in R&D capabilities, backward in production equipment, low in quality, and single in supporting models, they are mainly processed by independent automobile companies. With the overall strength of independent brand parts companies increasing, some leading wire harness companies that have established brand influence in the high-end and high-quality wire harness market have begun to accelerate the layout of industrial capital, integrate industrial resources, give full play to the synergy with partners in technology, customer resources and supporting services, and accelerate the survival of the fittest in the industry. In the future, China's wire harness industry will face an industrial environment of survival of the fittest and accelerated resource integration. Based on production costs and high quality requirements, high personnel costs, and recruitment difficulties, lean production has become the commanding heights of competition.