Like the whole vehicle, auto parts that are squeezed by both cost and price are also at the threshold of life and death. According to the latest research results of global business consulting firm Al-ixPartners, due to the appreciation of the renminbi, rising raw material prices and other factors, the export cost of some parts and components produced in China has increased by 16%, and the interest of foreign buyers in Chinese parts and components has begun to decline and gradually decrease. Procurement scale in China. Due to the lack of high value-added products, there will be $16 billion in parts and components in 2010 to “escape†from China.
In the face of cruel reality, how will the Chinese auto industry respond?
Crude oil prices broke through $130; global auto steel giant Nippon Steel raised the price of Toyota by 30%, selling more than 100,000 yen per ton, the highest price in 26 years; on the Tokyo Stock Exchange, rubber hit since June 2006 New high... In the context of the continuous rise of important raw materials and energy, manufacturers reacted differently in the parts and components of the automobile industry chain: tire giants did not hesitate to choose price increases, and most auto parts companies can only choose to maintain Original price.
The profit distribution of the international automobile industry chain is about 5:3:2, that is, component companies account for about 50% of the total profit of the automobile industry chain; vehicle manufacturers account for about 30%; and those engaged in automobile trade receive about 20% of profits. However, due to the large number of parts and components, the concentration is not as good as the whole vehicle, and the bargaining power is not strong, in fact, the average return on investment of the parts and components enterprises is lower than that of the whole vehicle, that is, the return rate is ranked from high to low, followed by automobile trade, Vehicle production, auto parts.
Because of this, auto traders are not very responsive to raw material prices, but vehicle manufacturers have shown mixed performance. "Only from the impact of rising steel prices, the heavier the weight of the car is affected," said Sun Muzi, an auto analyst at Anxin Securities. "The impact of rising steel prices on commercial vehicles is greater than that of passenger cars. 70% to 80%; in passenger cars, the rise in steel prices has a greater impact on the low-cost economy."
The rise in raw material costs has a significantly lower impact on high-end brand vehicles than in low-end and mid-end vehicles. This is determined by the value-added factors that exist in the automotive industry. A car has several major links in assembly, logistics and sales, while the cost of raw materials for high-end brand cars is not high. The recent increase in raw materials is only 0.5% to 1% of the price; and high-end brand cars can pass the scale. Effects and technological innovations to absorb this part of the cost pressure. But the middle and low-end cars are completely different. A car with a price of about 30,000 yuan, the price of steel may eat 5% of its terminal price.
Like automakers, auto parts companies have different capabilities to combat cost pressures. Sun Muzi pointed out that two types of component companies have the ability to transmit cost pressure. First, in a relatively monopolistic market segment, such as the tire industry. Second, companies that have entered the vehicle supporting system and have core intellectual property rights or competitiveness, such as Bosch Automotive and Japan Denso.
Other auto parts companies are complaining. In an interview with the reporter, a car chassis manufacturer said that the recent negotiations with the whole vehicle companies were not happy. The raw materials supplied by Baosteel have increased by nearly 10%. We require sharing with the whole vehicle companies, but we can't always talk about it.
In overseas markets, the crisis has also begun to hit the Chinese auto parts industry. According to a survey by PAC Group, a global consulting firm, in 2008, the purchase of spare parts for three auto giants in China, such as General Motors, Toyota and Ford, will be reduced by $8 billion from the expected value. In 2010, three auto giants were China’s purchases may be reduced by $16 billion.
The main reason for the shift in the procurement of multinational auto giants is that China's auto parts are mainly winning at low prices and do not have core competitiveness. Once the price rises, they lose their appeal. The latest research from global business consulting firm Al-ixPartners shows that in less than a year, due to factors such as the appreciation of the renminbi and rising raw material prices, the export cost of parts produced in China has increased by 16%.
The research report of Gasgoo.com further pointed out that more than 80% of multinational auto giants did not meet the goal of purchasing and reducing costs in China because of the lack of qualified and low-cost parts suppliers in China.
For this dilemma of parts companies, Dong Jianping, deputy secretary general of the China Association of Automobile Manufacturers, did not hold sympathy. At the 63rd National Auto Parts Trade Fair held in Harbin, Dong Jianping used the metaphor of “copying homework†to point out in a sharp way: In the past, we did the part with the lowest added value, and did not involve the part that earned money by wisdom. . I can't graduate from the homework of others.
Dong Jianping believes that Chinese auto parts manufacturers must carry out technological innovation. Only by developing high value-added products, China's auto parts can get rid of the situation that “production, technology, and technology research and development are becoming more and more marginalizedâ€. On the other hand, the current cost pressure more urgently reveals the necessity and urgency of “Made in China†to “Created in Chinaâ€.
Zhejiang Sealand Technology Co., Ltd. is a trustworthy manufacturer of LPG Mass Flow Meter, LPG Mass Flowmeter, LPG Flow Meter, LPG Flowmeter, LPG meter, ATEX, IECEx & CE approved.
Sealand have DN03 to DN150 size meters and are developing bigger models. Each meter can be connected with your computer through a USB-to-RS485 converter. The detail steps are as follows. Connect the meter and computer with a USB-to-RS485 converter( converter A+ end to transmitter A+ end, B- to B-, and GND to GDN); turn to device manager of the computer to check COM port connected with meter. Start the software, select the right COM port and click Connect; do not change any other parameters (if you do not know the right one, click Automatic options on the left, click Connect, plug & unplug the transmitter, and then check if it is connected). You can click Connect on the tool bar to disconnect or connect again. It will shown Connected/Not Connected at the bottom of this interface.
LPG Mass Flow Meter, LPG Mass Flowmeter, LPG Flow Meter, LPG Flowmeter, LPG meter
Zhejiang Sealand Technology Co., Ltd. , https://www.sealandflowmeters.com