All indications indicate that the growth rate of China's auto industry will decline this year. Affected by the overall auto market situation, China's auto parts companies will tend to merge and reorganize.

1, the car market suffered a "slam brake"

In 2010, China’s auto production and sales volume exceeded 18 million vehicles, an increase of 32% year-on-year. With the rapid increase in the production and sales of automobiles, the auto parts industry has also developed rapidly. The total industrial output value increased from 411.6 billion yuan in 2005 to 1.2 trillion yuan in 2009. The total output value of the auto parts industry in 2010 is expected to exceed 1.6. Trillions of dollars.

"In 2011, we will face a series of negative policy risks, such as 2.5% car purchase tax, trade-off policy with old trade-offs, Beijing limit licensing and strong demonstration effects on other cities, and the impact of oil price changes on the auto market. From a policy perspective, The negative impact was greater than the positive effect in 2011.” At the 2011 Asian City Quarterly Information Conference, Xu Changming, director of the Information Resources Development Department of the National Information Center, told reporters.

Xu Changming believes that for auto makers and distributors, this year is still a severe test, because everyone is used to 40 to 50% growth rate, and many decisions are made according to this trend. Now is the time to make adjustments.

Tsang Zhiling, chief forecaster of the Asia-Pacific automotive market, predicts that the domestic passenger car market would have been expected to maintain an 11% growth this year, but it is not surprising that the 8% to 10% increase could be sustained by the earthquake in Japan.

The “China Automotive Industry Prosperity Index” released in the first quarter of 2011 on April 21 also showed that the growth rate of automobile production and sales will fall sharply and the auto industry will return to normal operation. The published index report shows that: the overall economic benefits of the industry show signs of decline; the auto industry entrepreneurs are less satisfied with the industry conditions in the first quarter and are more pessimistic about future expectations; from the entrepreneurial survey results, the entrepreneur confidence index is obvious The decline is more pessimistic about the expectations for the next quarter.

“A series of factors have caused the auto market to wait and see the atmosphere is strong, and the parts and components companies will be prosperous and loss-making as the entire automotive market changes,” said the person in charge of an auto parts company in Beijing.

2. International competitiveness is still weak

At present, the international competitiveness of Chinese auto parts enterprises is still relatively weak. It is understood that most of the parts and components companies in China are non-core components, such as air conditioners, glass, batteries, and seats, and those with higher technological content, such as airbags, gearboxes, and electronic control systems, are wholly foreign-owned or Joint venture to do it.

Gao Shufeng, assistant to general manager of Shandong Golden Kylin Group, had previously told reporters: “We used to think that the domestic labor force is relatively cheap, but we now find that the labor force is not very cheap compared with some foreign counterparts. The same equipment is in Austria, the United States, A worker in Japan can look at four or five machines, but in China, two people need to look at a single machine. The quality of employees is different. Simply relying on cheap labor to enhance the competitiveness of enterprises is not feasible."

Cao Hongsheng, general manager of Beijing Jinke Composite Materials Co., Ltd. had previously described this newspaper. At present, the EU countries have issued a policy on friction materials, prohibiting the use of asbestos in friction materials, and stipulating the use of non-ferrous metals. Because the friction material will wear out, there will be dust, some of which will be absorbed by the body and fall into the earth, and will flow into rivers, lakes, and seas through the impact of rain, causing some pollution to the surface water.

Xu Changming stated at the “2011 Third Global Auto Parts Industry Summit Forum” held recently that with the rising price of factor prices, the cost advantage of independent components and parts is being weakened, and foreign-funded parts and components companies rely on the advantages of scale and localization of R&D. Form a clear cost advantage;

The increase in standards for energy conservation and environmental protection and the tightening of regulations have brought both technical and costological pressures to autonomous parts and components; the growing popularity of modular production and simultaneous development has brought higher and higher technical barriers to autonomous parts and components.

3, parts and components industry needs to be stronger and bigger

However, Xu Changming also pointed out that the domestic vehicle market has more than ten years of development space, which will drive the development of parts and components. First of all, before 2020, the domestic passenger car market will still be in a rapid development zone, with a growth rate equivalent to about 1.5 times the GDP growth rate, providing sufficient space for independent brands to develop. Second, auto exports will continue to maintain a good long-term development trend, which will bring international market opportunities. Third, in the future, the market will accelerate the transition to second and third-tier cities, especially the third-tier cities will become the main growth point.

Industry insiders pointed out that under the severe situation of the auto market, these limited opportunities will surely become cakes for the entire vehicle companies to compete for, and the stronger automobile companies and parts and components companies have more obvious advantages in competition.

Xu Changming believes that there is no strong vehicle company without a strong self-owned parts and components company. It must be clear that a strong self-contained vehicle must be matched with a strong independent component and must be bigger and stronger.

As a major component company of several major group companies, it is imperative that the Group's overall strength be utilized, and a series of measures including increasing R&D investment be adopted to expand the component companies.

Recently, AVIC Automotive and Beijing Yizhuang International formally jointly acquired Nexteer Automotive Systems. The company's Chinese headquarters also settled in Beijing. This is the largest overseas acquisition of China's auto parts industry and the largest merger of auto parts between China and the United States.

“The acquisition shows that the integration and reshuffle of Chinese parts companies has begun.” An industry source stated that the global parts and components market has been fully competitive, but the Chinese auto parts market is still not fully competitive in the transition period. In the next five years, the competition among Chinese parts companies will become more intense and the pace of shuffling will also accelerate.

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