Parts and components: export growth is still unfavorable

Abstract According to well-known consulting firm Alex union recently released a research report, China's auto market continued strong sales hit record highs, so many auto parts company's products in short supply in 2010 is expected spare parts production and sales growth is expected to exceed the whole car Industry 6~8...

According to the latest research report issued by well-known consulting company Erics, China's auto market continues to strengthen and sales volume has reached record highs, which makes many auto parts companies' products in short supply. It is expected that the growth of parts production and sales in 2010 is expected to exceed the entire automotive industry. 6 to 8 percentage points.

According to the latest investment report and forecast report of China's auto parts industry from 2010 to 2015, China Investment Consulting Co., Ltd. pointed out that China's auto parts export supporting market in 2010 is expected to emerge from the downturn in 2009.

The export situation in the first half of 2010 is gratifying
China National Automobile Industry Association's national customs import and export statistics show that in May 2010, auto parts exports performed better than imports, with a total export of 3.469 billion US dollars, an increase of 14.94% from the previous month and an increase of 57.90%. In the first five months of 2010, the export volume of parts and components maintained a high growth rate, and the export situation was gratifying.

Engines (engine parts), steering systems, brake systems, driving systems, electronic appliances and other components have also maintained a good export situation, avoiding the phenomenon of short-board exports. Among them, the three sub-sectors of steering system, electronic appliances and body accessories have outstanding performance, and the export value has increased by more than 65%.

Industry experts generally said that due to the high opening of China's auto market in the first half of 2010, the parts industry maintained a good growth. In March, China's automobile production reached the highest level in a single month, nearly 1.7 million units. After being affected by the decline in terminal sales in the automobile market, the output decreased month by month, and the year-on-year growth rate gradually slowed down, taking into account parts and vehicles. Industrial connections have a one-to-two-month interval, and the development of the parts industry in the second half of the year may face certain challenges. In terms of exports, the overall performance of the auto parts industry in the second quarter still maintained a sequential growth, but due to many factors, there is a risk of falling gross profit margin.

In April 2010, at the Beijing Auto Show Parts Exhibition, the reporter interviewed a number of companies and talked about product exports. The company reacted differently. In terms of new technology applications, many foreign parts companies have launched their own hydraulic retarders in China. By contrast, self-owned brand auto parts companies are still relatively weak in such technologies, which affects The export business is profitable. In addition, compared with large groups or large parts and components enterprises, domestic small and medium-sized parts companies did not show too many new products at the auto show, and the technical content is still relatively low. For the export situation, many companies are generally optimistic about the first half. Some export-oriented enterprises dominated by labor-intensive enterprises are paying more attention to factors such as RMB appreciation and export barriers.

Quality issues become the focus of attention
At a time when the export situation of auto parts is gratifying, the frequent recall of the whole vehicle and the resulting attention to the quality of parts have once again become the touchstone for testing enterprises.

In the Guangdong region, which has close contact with Japanese vehicles such as Toyota Motor, which recalled large vehicles, from January to April 2010, the export of auto parts was 630 million US dollars, an increase of 36% over the same period of 2009. Many companies said that due to the impact of the recall, the emphasis on the quality of export products has also deepened.

It is reported that the export of auto parts in Guangdong has started to decline year-on-year since November 2008. After reaching a trough in February 2009, the export value has rebounded month by month, and the decline has gradually narrowed. Since November 2009, it has achieved year-on-year growth for six consecutive months. Exports in April 2010 were $160 million. In addition to major exports to the United States, Japan and the European Union, exports to ASEAN increased by 44%, and exports to Russia and India both more than doubled.

Export risk undercurrent
Since September 2009, China has eased the export crisis of the domestic auto parts industry by adopting a number of favorable measures such as stabilizing export tax rebates and increasing financing support. At the same time, the global automotive market demand shows signs of recovery. Many multinational companies have procured low-cost auto parts in China to reduce production costs, which has opened up new opportunities for China's auto parts exports.

From the current point of view, the technical content of China's parts and components export products is still low, mainly based on processing trade exports, and the characteristics of labor-intensive type are very prominent. For the past five months, the Shandong port was an example. The export of processing trade was 160 million US dollars, an increase of 80.8%, the highest growth rate.

A person in charge of an automobile steel rim in Zhejiang told reporters that two years ago, a steel rim could still sell for $44, and now it can only sell for $40. Although the country has raised the export tax rebate rate several times after the financial crisis broke out, for example, the export tax rebate rate of steel wheels has reached the highest 17%, but the living space of low value-added products is getting smaller and smaller.

It is understood that China's export of auto parts are mainly concentrated in low value-added, high energy consumption, raw material-intensive and labor-intensive products, such as rims, filters, fuel tanks, bearings, lights, brake pads, radiators, Bumper and engine parts. 90% of the domestic component manufacturing enterprises' market share is concentrated in the low-end products supplied to the foreign maintenance market, and the international market share, product competitiveness and profit margin are low. Domestic auto parts companies have insufficient innovation capabilities and weak product technology development. Domestic R&D expenses generally account for 1% to 2% of sales revenue, while foreign large parts suppliers generally range from 5% to 7%.

In recent years, from fasteners to car tires, the trade frictions encountered in the export of Chinese auto parts have never stopped. In 2009, the United States, Canada, Russia and other countries successively carried out anti-dumping investigations on automobile transmission shafts and brake discs exported from China; Brazil imposed a five-year anti-dumping duty on imported automobile radial tires from the United States; All imported cars and light truck tires are subject to a tax rate of 35% in the first year, 30% in the second year, and 25% in the third year. Emerging markets such as Egypt and India also set trade barriers to the export of our auto parts; 2010 On February 19, India decided to impose a five-year anti-dumping duty on radial tires originating in China. On May 11, the European Commission decided to use aluminum alloy wheels originating in China and involving about 400 million US dollars. A temporary anti-dumping duty of 6 months and a tax rate of 20.6% is imposed.

Raw material prices have risen and export advantages have fallen. Lower raw material prices and labor costs are inherent advantages of China's auto parts exports. Recently, the prices of steel, oil, aluminum, coal and other raw materials have risen worldwide, and the appreciation of the renminbi has brought about an increase in the cost of exchanges, resulting in a reduction in the profit margin of auto parts exports. Therefore, in the absence of core competitiveness of domestic auto parts, the prices of raw materials generally rise, the production costs of enterprises increase, and the pressure on the industry increases, which poses no small challenge to the parts and components export market in the second half of the year.

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