China's machine tool industry urgently needs to improve service levels

In recent years, China's automobile industry has experienced remarkable growth, becoming one of the most dynamic sectors in the global market. As the largest consumer of machine tools, the question arises: does China’s automotive manufacturing technology and equipment meet the growing demands of this booming industry? And where does China stand compared to advanced countries in the machine tool sector? To explore these issues, we spoke with Mr. Chen Changnian, a consultant at the General Institute of Mechanical Science. Mr. Chen explained that the competitiveness of a country’s automotive industry is closely tied to the advancement and cost-effectiveness of its manufacturing technology. Over time, the evolution of automotive products has always been driven by improvements in production techniques. For instance, a century ago, combined machine tool automatic lines were dominant in automotive production due to their high efficiency. However, as competition intensified and product cycles shortened, these rigid systems became insufficient. In the 1980s, Ford and INGERSOLL introduced flexible, high-speed processing technologies that combined efficiency with adaptability. This shift enabled faster product development, leading to the annual release of dozens of new car models. In recent years, the adoption of advanced CNC equipment has allowed Chinese sedans to enter an era of flexibility, supporting the continued expansion of the domestic auto industry. When asked if the problem of “equipment dependency” had improved, Mr. Chen acknowledged that it still persists. Key components such as high-precision engine blocks, cylinder heads, and gearboxes are largely imported, with over 90% of flexible automatic lines (FTL) relying on foreign suppliers. Domestic manufacturers lack the capability to produce FTL for modern engines, and even high-speed machining centers suffer from a 10-year technological gap in precision and reliability. Many specialized CNC grinding machines, such as those used for crankshafts and camshafts, are almost entirely imported. However, there are exceptions. For example, Jinan No. 2 Machine Tool has successfully exported high-speed press lines to the U.S., and holds a strong position in the domestic market. Mr. Chen also highlighted the main technical bottlenecks in China’s automotive industry: reliance on foreign core components like energy-efficient engines and automatic transmissions, and backward manufacturing technology that leaves more than 80% of key equipment dependent on imports. He emphasized the need for advancements in high-end automotive and engine manufacturing capabilities, noting that even basic stamping accuracy remains a challenge. Despite the rapid increase in auto parts exports—from $2.7 billion in 2001 to over $68.9 billion in 2011—China still faces a trade imbalance, exporting low-value, low-profit products while importing high-value, high-margin ones. Finally, Mr. Chen pointed out that Chinese machine tool companies must improve not just in technology, but also in service. Unlike foreign competitors who offer “total solutions,” many Chinese firms only sell machines without comprehensive support. He cited examples like Sandvik, which provides cutting technology and lifelong service to customers, something China is still lacking. In summary, while China has made progress, significant gaps remain in both technology and service. To become a true global leader, the industry must focus on innovation, integration, and customer-centric approaches.

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