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Understand the map of China's automotive supply chain in one article

Time:2022-05-16Number:1736

Producing a car requires over 10000 parts. There is only hourly inventory of parts on the automotive production line, and car companies can place orders with component manufacturers as needed. The production materials of component manufacturers are often only sufficient for one or two weeks, and basic manufacturers need to transport them from other regions. Toyota's Just In Time (JIT) model has been widely used in this industry - parts are available as needed, reducing capital occupation and minimizing costs.

More than 10000 parts are produced and integrated by multi-level suppliers distributed in various regions. Any small component shortage can trigger a butterfly effect downstream.

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