2010 Auto Parts Market: Global Depression in China
A few days ago, a report on the "Global Automobile Supply Barometer" jointly issued by Kearney and "Supplier Commerce" was released. The report shows that the global parts industry market will remain stable in 2010, but there will be great differences among different regions and different subdivided areas.
The survey was conducted in mid-December 2009. Participants included senior executives from more than 220 automotive supply companies worldwide. The survey shows that compared with the global downturn of parts and components companies, the survival environment of Chinese parts and components companies is relatively optimistic. Based on the booming development trend of domestic auto companies, China's Spare Parts companies have not had much concern within three years.
At the same time, due to great changes in the global automotive industry, many auto giants have turned global procurement into Chinese parts companies in order to save costs. According to Kearney's investigation company, in addition to the large export of standard products and embryonic products, metal processing products have also grown rapidly in the past two years.
However, for some products with relatively high processing ratio and high technological content, domestic enterprises have still not achieved a breakthrough. Sun Jian believes that this shows that although multinational giants have expanded their purchases in the Chinese market, they have not yet taken large-scale actions. At the same time, due to a number of uncertainties in the international automotive market, this also adds uncertainty to the domestic auto parts export business. In addition, the Chinese economy is currently under pressure of inflation, and it is not ruled out that vehicle companies will shift the pressure of rising costs to parts and components companies in the future. However, parts and components companies can absorb the increase in economies of scale to digest.
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