In recent years, China’s auto output has been growing at a rapid rate. This has also given auto parts manufacturers a golden period of growth. The good export and domestic market sales of the auto parts industry have also attracted the attention of investors including steel companies.

Export situation may continue

In the first half of the year, China’s total auto parts exports continued to grow, but the year-on-year increase declined. The export value of auto parts remains the largest among all auto exports. In the first half of the year, the accumulative export value of auto parts was 28.159 billion US dollars, a year-on-year increase of 4.59%, an increase of 9.77 percentage points from the same period of last year, accounting for 75.82% of the total auto exports.

In the first half of this year, of the four categories of auto parts exported, 1.6076 million engines were exported, an increase of 1.33% over the same period of last year, and the export amount was 753 million US dollars, a year-on-year decrease of 5.79%. From the perspective of exports in June alone, the engine exports The amount of 130 million US dollars, the chain growth of 7.68%, a year-on-year decrease of 1.79%; tire exports, automobile and motorcycle tire exports amounted to 7.03 billion US dollars, a year-on-year decrease of 2.08%, failed to extend the growth trend of last year; auto parts, accessories and The vehicle body export amounted to US$14.712 billion, an increase of 9.17% year-on-year; other automobile-related goods exports amounted to US$5.664 billion, an increase of 3.61% year-on-year.

Industry insiders expect that the trend of auto parts exports will not change much in the second half of the year, basically following the market performance in the first half of the year, and the amount of exports will continue to increase slightly. However, analysts are cautious about the export of auto parts. Since most of the auto parts exported by China are exclusively foreign-owned or joint ventures, domestic-funded enterprises produce only about 20% of the total export products. In addition, with the gradual development of the international market, the domestic auto parts industry will face more fierce competition in the international market.

The proportion of automotive steel will increase

According to industry insiders, due to the over-expected increase in domestic vehicle sales, coupled with the accelerated demand for automobile purchases in third and fourth-tier cities, the domestic market space for the auto parts industry will be even broader. At the same time, the quality requirements for auto parts have become increasingly stringent.

The “Responsibility Regulations for the Repair, Replacement, and Return of Household Automotive Products”, which will be formally implemented on October 1, have made clear and inelastic provisions for parts and components, and the parts and components used for the repair of domestic automotive products should be provided or approved by the manufacturer. Qualified parts and components, and the quality is not lower than the production line of the assembly line for domestic automotive products. The three-bundle range includes the two main assemblies of the engine and the transmission, the steering system, the brake system, the suspension system, the body, the front/rear axle, and 13 fragile parts. This obviously has a profound impact on the auto parts industry. Companies with gaps in their technological level and quality relative to their original parts will face severe challenges, but they will be good for companies with good product quality.

According to the calculation of automobile production reaching 28 million vehicles in 2015, by the end of the “Twelfth Five-Year Plan”, the demand for automotive annual steel consumption is expected to increase to 60 million tons; the proportion of steel consumption for automobiles in China’s total steel consumption will also be the current 6 % rises to around 10%. According to the experience, Youte Steel accounts for 28%~35% of the steel used in automobile. The use of Youte Steel can be approximately equal to the amount of steel used for automobile parts. Based on this calculation, in 2015, the demand for steel for auto parts is expected to reach about 20 million tons.

Or will become the focus of steel investment

As the steel mills have the advantage of customer channels and raw materials, extending the products to the auto parts business will not increase the cost of developing customers. Some insiders said that steel companies may consider integrating auto parts business. In fact, some companies have begun to increase their efforts in car business development, and have even extended to the construction of auto parts bases. As recently, WISCO announced that it will cooperate with Chery to build a parts and components base, which will mainly produce automotive stamping parts, and Wuhan Iron and Steel will participate in the participation model. Not long ago, Shougang officially launched the auto parts factory in Fangshan, and Baosteel also cooperated with Guangzhou Automobile Group to participate in the automobile production field. The steel mill has a processing and cutting center around the vehicle plant, which can dig deeper customer channels and bring the relationship between auto customers and steel mills closer. In the current situation where iron and steel enterprises are in a predicament, strengthening cooperation with auto companies is also one of the ways of transformation and development. According to industry insiders, there is another investment focus for auto parts business or large steel companies.

Car Headlight Film

Car Headlight Film have PVC / TPH / Self healing TPU material tint film with high clear transmission and UV resistant and protect your car headlight not damage.And colorful colors to choose to make your car fashion stylish.

Car Light Protection Film,TPH Headlight Tint Film,TPU Car Light Film,Car Headlight Tint Film

Guangzhou Fuyulai Technology Co.,Ltd , https://www.fylcarstickers.com