Automobile industry shrinks parts companies and suffers structural shocks

The strong growth in China's auto parts and components exports was the 20.3 times that of the United States after-sales market in the first year (2002) of the accession to the WTO. The demand for the aftermarket in the United States maintained an increase of about 5%. Many people do not need to buy new cars to repair old cars in order to save expenses. More Europe and America Consumers are willing to choose Chinese products with more competitive prices. This may be an opportunity for Chinese companies.

“America's largest chain used to purchase items such as chair covers and other items in China. This year, this type of order was reduced by half. They turned to China to purchase large-scale components for car owners.” A domestic exhibitor spoke. On December 10-12, the Shanghai International Auto Parts, Maintenance Testing and Diagnostic Equipment and Service Products Exhibition was held.

The domestic exhibitors said parts and components include brake discs, generators, starter motors, and water tanks. "Despite the global economic crisis, the impact on China's auto parts companies is not as big as imagined," he said.

As one of China's most professional trading platforms for auto parts, warranty products and service supplies, this exhibition has become the second largest brand exhibition in the world after the same exhibition in Frankfurt, Germany. This year, the exhibition area has reached more than 80,000 square meters. . Attract global buyers and sellers

The rapid development of China's auto parts industry and markets has attracted the attention of global buyers and sellers to China. Nearly 2,000 companies from 23 countries and regions have exhibited, and more than 30,000 professional visitors from around the world have participated.

According to the latest figures released by the China Association of Automobile Manufacturers, in the first half of 2008, China’s auto parts exports totaled 15.374 billion U.S. dollars, a year-on-year increase of over 19%. This scale is 20.3 times that of $757 million for the first year of 2002 after the accession to the WTO. The strong growth of China's auto parts industry mainly relies on electrical and electronic components and cast metal parts.

In the export of auto parts in the first half of this year, according to the major product categories, the driving system exported nearly 4.06 billion U.S. dollars, accounting for 26.4% of the total auto parts exports, and the auto electronic products exported more than 3.07 billion U.S. dollars, accounting for 20%. The share of exports of steering systems and their components is the lowest.

On the import side, due to the continuous increase in the market size, the import demand for auto parts has been promoted. According to statistics from China Customs, the total auto parts import and export volume for the whole year of 2007 was US$42.73 billion, of which the total export value was US$28.5 billion; the total amount of auto electronic appliances and instrument import and export was US$5.02 billion, of which the export value was US$4.8 billion; The total value of imports and exports of engines was 4.29 billion U.S. dollars, an increase of 16.43%.

This exhibition is jointly organized by Frankfurt Exhibition Company and China National Automobile Industry International Cooperation Corporation. It is one of the 13 international brand exhibitions in the world. Chinese exhibitors see it as an important opportunity to expand the domestic sales system and seek international buyers. Overseas companies through this exhibition to further understand the Chinese automotive market and China's products, find suitable partners and expand the trade market share.

Foreign businessmen focus on promoting brand protection

In this exhibition, four automakers including Volkswagen, BMW, Ford and Peugeot-Citroen, together with Bosch, Bridgestone, Denso, Mahles, Gates, Schaeffler and ZF seven worlds Leading spare parts suppliers, for the second time, exhibited in the name of the China Quality Association for Foreign Investment Enterprise Association (QPCC), which aims to crack down on counterfeit auto parts in China and strengthen cooperation among industries. It is vital for exhibitors and consumers at home and abroad to demonstrate that counterfeit car parts are related to life, to promote knowledge of car maintenance, and to promote a legal and orderly business competition environment.

The head of the Automotive Industry Working Group of the Quality Insurance Committee and the brand protection and Asia Pacific manager of Bosch Trade (Shanghai) Co., Ltd. Yu Wenjun said that the auto group has 33 member companies. We care very much about the image and quality of our products and also through various channels. Provide multinational companies with experience in brand protection to all levels of government. The issue of counterfeit automobile zero exports has become increasingly fierce. The export markets are mainly the Middle East, South America and Southeast Asia. Bosch has more than 100 counterfeit cases each year, many of which are criminal cases.

Mah Yan, General Manager of Mahle Trading (Shanghai) Co., Ltd. added that one of the daily tasks of the Automotive Industry Working Group of the Quality Insurance Committee is to provide clues and training to relevant government departments such as the Customs, industry and commerce, etc., hoping that the whole society will raise awareness of brand protection and endanger The counterfeit products of people’s lives and property have no place to hide.

How big is the financial crisis?

Component exports are divided into matching and aftermarket markets. The total demand for the former is declining. The decrease in demand for the aftermarket is much smaller than that of the matching market.

At the seminar and seminar held during the same period of the show, industry experts believed that the demand for the US aftermarket in the first half of the year still maintained a growth rate of around 5%, largely because many people saved expenses by not buying new cars and repairing old cars. While more European and American consumers may be willing to choose more competitive Chinese products during this period, this may mean more opportunities for Chinese companies. In short, for most Chinese domestic parts and components companies, the total demand in the international market will decline due to the financial crisis and it will be less than the impact of rapid appreciation of the renminbi on exports. The procurement cycle in the supporting market is often as long as 1-2 years, and the procurement cycle in the aftermarket is at least half a year. Therefore, the actual supply may be half a year or even two years later.

After analyzing the export of a large number of electromechanical products, Lu Luxun, head of the National Electromechanical Products Import and Export Office of the Ministry of Commerce, stated that the impact of the financial crisis on China's auto parts companies was a structural one. Some enterprises with independent brands, strong core competitiveness, and long industrial chains have a relatively small impact on exports. In addition, the export of auto parts to overseas aftermarket has maintained growth in recent months.

Therefore, these dynamics of buyers and suppliers at the end of the year can be seen as a barometer of the development of the Chinese automotive market in 2009.

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