Kai Yi De Conversely Increases Investment in China

Since the beginning of this year, China’s economic development has entered a “new normal” and the auto industry as a whole has been sluggish. Vehicle manufacturers have lowered their sales targets, and some parts suppliers have also had to reduce market expectations. However, one supplier recently held a high-profile press conference in Changshu, Jiangsu Province, claiming that the company maintained a vigorous growth trend in China and the Asia-Pacific region and plans to further increase investment in the Chinese market.

Parts suppliers this against the market trend and on, and that is the production of automotive locking systems Kiekert (Kiekert) AG.

Understanding of Globalization: Technology Localization

In 2015, Kai-Tech acquired Henan Xingguang Xingguang Electromechanical Co., Ltd. and renamed it as “Kai-Zhede Automotive System Zhengzhou Production Base”, and integrated with the Changshu production base that was established in 2008. The Changshu base is in process, Implement unified management in decision-making and quality standards.

Kaiyide Automotive System Production Base Inauguration Ceremony
Kaiyide Automotive System Production Base Inauguration Ceremony

If you switch to a few years ago, mergers and acquisitions between companies is a very common thing. However, in today's skeptical of the future of China's auto industry, this contrarian behavior has caused the industry to pay special attention.

“Our company has always pursued a global strategy, where there are customers and markets, and where we are going to produce. Therefore, this investment is in line with the strategic market position of Kiekert.” For many questions, Kaiyide Group and the stock company The answer of Dr. Karl Krause, the president, seemed very indifferent.

Now, "globalization" has become a common word in the automotive industry. Some foreign brands have entered China and established standardized R&D centers and factories to produce the same automotive products as the world. Some domestic auto and component companies “go global” and set up production and R&D bases in other countries.

However, what is globalization? Why do some companies have a successful global strategy, and some companies have problems? For this reason, the understanding of the company has its merits.

Kaiyide Corporation has its own unique understanding of this issue. In their view, globalization is the localization of technology. When entering a market, we must thoroughly understand this market, and make our own technology and management fully in line with the needs of this market, so that the products developed and produced are available to users. Accepted and recognized.

Under the guidance of this localization strategy, the company established its R&D and production base in Changshu in 2008, which is its second global R&D center in addition to the German headquarters. Since entering the Chinese market, they have begun to make full use of local teams to research the local market and have specially researched and developed suitable products based on the needs of the Chinese market, which has been highly recognized by Chinese users. At present, more and more car brands have selected Kaiyide Locks, and the company’s Chinese factory's sales this year are expected to reach 840 million yuan.

This is also an important reason why Kaiyide dared to increase investment in China against the trend. As China's economy has become more normalized, many people look at the future of the Chinese auto market with a skeptical eye. However, in Ko Tao Ze’s eyes, the huge space in the Chinese market comes from the increase in internal demand. With the increase in automobile exports in the next 10 years, There will be a bigger change.

“China is the world’s largest automotive market, which is of great importance to Kai-Tech. In the Chinese automotive market, the share of local auto brands is rapidly increasing, and the market is gradually shifting to high-end models, all of which are the Kai-Ik market. The best opportunity to increase the share," said Ke Changze.

Strong position starts with constant innovation

Over the years, China's auto parts suppliers have been in a weak position in the industry chain. Whether it is the market or the price of products, everything is constrained by vehicle companies. And here at Kiekert, what people see is full of confidence and the attitude of an industry leader.

This is closely related to the company's unique industry position. In its history of more than 150 years, Kai-Kieh has developed and produced more than 1.5 billion door locks for the global automotive industry. Kaiyide's products can be found in more than 70 auto brands. One of every three cars in the world uses a Kiekert door lock, which accounts for 20% of the global car lock market. In 2015, global sales are expected to reach $6 billion.

How does a company that produces a single auto part become a "hundred-year-old shop" with a strong reputation? Ke Yuze shares the unique secrets of the company's continued development with the industry.

“We do not make standard parts suppliers, but tailor-made for our customers. Our products are always pursuing innovation, always meeting market demands and taking the lead, never producing old products,” he said.

It is precisely because of its persistent pursuit of innovation that Kaiyide began to study the company's positioning and market more than 100 years ago, from an ordinary door lock company to a professional car lock R&D and production enterprise. Twenty years ago, they did not quite understand the Chinese market. They saw a huge opportunity in the Chinese market and soon came to China to establish a joint venture in Henan.

As a leading supplier of auto parts, Kaiyide continuously explores customer needs with its strong technical foundation and keen market sense. Such as electric sliding doors and modular Beta lock platform, they use a new generation of full-featured "satisfaction technology" electric drive for the Asian market tailored innovative technology solutions.

In the car lock related field, the company now has more than 1600 patented technologies. In the past two years, they have noticed the development trend of lightweight cars. After careful research and development, they have made great efforts in design and materials. Kaiyide reduced the weight of lock products by 50%.

Even if it is already in the position of an industry leader, Kiekert is not satisfied with being merely positioned as a manufacturer of automotive “safety” systems, but is actively expanding its product range to “comfortable” aspects such as comfort of seats, opening and closing of doors. Damage to the human body. Although these aspects are not directly related to the lock, Kaiyide believes that anything related to the closure of the car involves the company's products, extending from safety to comfort, which is normal human needs. Therefore, we do not rule out future investment in this area.

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