Expansion of China's auto market to power mold industry development

Expansion of the automobile market

In 2000, sales in North America and Europe totaled 36 million units, accounting for 70% of sales in major markets worldwide. In 2010, emerging markets contributed 37 million units of sales, 2 million more than mature markets. It is estimated that the sales of new vehicles in the emerging markets will reach 60 million units in the next five years, far exceeding the 42 million units in mature markets. It is expected that the sales volume in North America and Europe will reach 39 million units in 2020, and the growth in 20 years will be only 3 million units. The estimated growth rate of emerging markets is significantly faster. Emerging markets sold 16 million units in 2000. It is expected that sales will reach 74 million units in 2020 and 58 million units in a decade. In emerging markets, China is the largest and most important country and should be placed first. According to statistics from the Ministry of Public Security of China, as of the end of September this year, the number of motor vehicles in China reached 199 million. Of the 199 million motor vehicles, 114 million were motorcycles. There are also about 15 million low-speed trucks, also known as agricultural vehicles. If you subtract agricultural vehicles, as of the end of September 1010, China’s civil vehicle ownership was actually only 70 million, which is lower than Japan's 75 million car ownership, equivalent to about a quarter of the 285 million US car ownership. .

Expansion of China's auto market to power mold industry development

From a worldwide perspective, there are 128 vehicles for thousands of people. In contrast, China currently has only 52 vehicles for 1,000 persons, which is less than half of the world average. If it reaches the world average, China’s car ownership should be 156 million vehicles. At present, this figure is only 70 million vehicles. Such a huge gap has also become the main driving force for the expansion of China's auto mold market. Luo Baihui, secretary-general of the International Mould, Hardware and Plastics Industry Suppliers Association, believes that China has a lot of room for development. Compared with the top 15 countries in the 2010 global light vehicle market and the top 15 countries expected in 2020, the highlight is that the future China The rapid growth will reach 35 million vehicles by 2020, equivalent to twice the number of countries ranked second in the United States. It is under the influence of huge consumption drivers that the shift of a global light vehicle from the West to the East has become overwhelming. Most of the emerging market's production and sales come from China, Russia, India, and Brazil, which are four traditionally known as the "BRICs," and China will be the leader in future growth.

Resource leaning in China

Luo Baihui believes that under the shift of the global situation, the global automobile market will also undergo new changes in its layout. First, the global automobile production center will focus on Asia. By 2020, China, India, Japan, and South Korea will account for nearly half of global vehicle production, and Asia will become a global production center, bringing new growth opportunities to molds, parts suppliers, logistics companies, and distributors worldwide.

In fact, since last year, vehicle companies, including Volkswagen and General Motors, have also made it clear that they will continue to invest in China and rely on investment strategies in the Chinese market. At the same time, emerging markets including Brazil and India have also been expanded by vehicle companies and component companies.

Last year, GM invested in a forward-looking technology center in China, which is the effect of the shift in the automotive industry. The global automotive design and engineering center is also shifting to Asia, and the resulting impact will be reflected in the focus of future car design and engineering.

The original so-called mature market consumers are no longer a priority consumer group, they have to adapt to the products of non-traditional car powerhouses. As production, sales, design and engineering are concentrated in Asia, the center of global purchasing decisions will also shift to Asia. On the same day, General Motors China President and General Manager Gan Wenwei released a five-year GM strategy in China in Shanghai. In this strategy, GM will launch more than 60 new and upgraded models in the next five years. In order to better meet the needs of local consumers, GM’s models to be launched in China in addition to GM’s global models will also include models developed specifically for the Chinese market in China.

With the market shift, mature market suppliers in North America and Europe will be listed as the second tier. They have to find foreign suppliers and local Asian suppliers for deeper alliances to participate in the means of growth in Asia.

Under the influence of this new pattern, China's automobile industry will also undergo some changes. As foreign countries develop new technologies for local research and development of new models, the pressure on Chinese self-owned brand companies is even greater. Self-owned brand companies will also upgrade their own systems to meet this aggressive competition.

The challenge that comes first is reflected in the quality of new cars of independent brands. The speed of advancement of multinational companies in the Chinese market will also stimulate the quality of Chinese independent brand companies. In 2000, there were 396 problems per 100 vehicles in China's own brands, which were later reduced to 89 problems. With this speed of progress, we expect that the quality of new cars of China's own brands will be on an equal footing with international brands in 2015-2018.

At the same time, the network of Chinese car dealers is also booming. Currently, there are approximately 14,500 car dealerships in China. If car sales are expected to reach 35 million units by 2020, the number of car dealers in China will also increase dramatically in order to better enhance after-sales service capabilities.

At the same time, the expansion of China’s auto market will also directly drive vehicle companies to follow-up industrial chain development, including access to after-sales services, replacement of parts and components, sales of used cars, financial and insurance services, and even recycling of used cars. The profits. With the rapid development of automobile consumption, the automobile mold industry as an accessory industry has also developed rapidly. At present, China's auto mold enterprises are generally small in scale, and their independent research and development capabilities are not strong. However, it is believed that under the impetus of the market, companies will continue to be stronger in their expansion.

The birth mold market

According to statistics from the National Development and Reform Commission's China Association for Automobile Products and Refitting Technology Center, the average annual growth rate of automotive supplies and parts and components market was more than 30% in 2007, and the number of manufacturers above the scale was nearly 15,000, and the total annual industrial output value was 200 billion yuan* **. In accordance with China's passenger vehicle sales growth at a rapid rate of 12% annual growth rate, the high growth rate and base number will make China's passenger vehicle sales in the next few years will exceed 10 million, behind the high amount of possession is a huge mold market. According to Luo Baihui, head of the International Mould and Hardware Plastic Suppliers Association, the entire automobile industry chain, the entire vehicle sales profit accounted for about 20% of the profits of the entire automobile industry, and the profit of spare parts supply accounted for about 20%. The automobile mold market The resulting profits account for about 20%, and the other 40% to 50% of profits are generated in the service sector. According to the “Yearbook of the Automotive Industry” (2009 edition), the number of vehicle ownership in the United States reached 251 million in 2007, of which 138 million were passenger cars; the number of Canadian cars was 20 million, of which the number of passenger cars was With 0.19 billion vehicles, the North American region’s car ownership in the United States and Canada accounts for 28.56% of the world’s car ownership. Its huge car ownership has given birth to a huge mold market in North America.

The automotive plastic parts industry is highly dependent on the automotive industry. With the rapid development of China's auto market in recent years, the number of autos in China and the world continues to increase, and the demand for automotive plastic parts and components is increasing. Zhou Yibing, chairman of the relevant industry branch of the Automobile Industry Association, estimates that the average plastic consumption of domestic mid-size cars is about 135kg/vehicle. According to the average unit price of plastics, the value of plastic raw materials for bicycles is estimated to be about 2,000 yuan. Through interviews with a number of industry experts and analysis of the main representative products of auto plastic parts, it is believed that the proportion of the total cost of raw materials for auto parts and plastic parts is about 50% to 70%. In this way, the value of bicycle plastic parts will reach an average of about 3,300 yuan. . According to this conservative estimate, the current market capacity of plastic parts will be around 35 billion yuan, and by 2013 it will reach more than 50 billion yuan.

The "radiation power" of an industry is inextricably linked with the establishment of an industrial park. The mold industry has also begun to build its own growth chain. The ratio of the production value of the mold industry to its related industry output value is about 1:100, that is, the development of related industries with a value of 100 billion yuan per 100 million yuan in molds. The overall development trend of the mold industry known as the “golden key” becomes a refraction-related A mirror of the development of the industry. Luo Hui pointed out that, to promote clusters, and gradually form a reasonable division of labor, supporting sound and close collaboration of mold industry chain, to promote the development of molds and related industrial chain and the manufacturing industry in the region has become a trend.

In 2010, China's auto production and sales both broke through 18 million vehicles, reaching 18,264,700 vehicles and 18,806,900 vehicles. This has set a new record for global auto production and sales, and has won the number one global leader in production and sales. According to Luo Baihui, head of the International Die & Mould and Plastic Industry Suppliers Association, such a huge demand market will significantly drive the rapid development of the mold industry that provides equipment for the auto parts industry. With the further adjustment of policies, the growth rate of the automobile mold industry will tend to be flat in 2011, market competition will further intensify, and auto mold enterprises will face greater opportunities and challenges.

The rapid development of China's entire vehicle has directly stimulated the rise of the automotive aftermarket. The development of China's auto parts industry has become the focus of attention. Especially in some developed regions of Europe and America, China’s auto parts industry is called In the gold industry, the global auto center has subsequently shifted to China, which has brought great opportunities and competition to the Chinese auto aftermarket. As one of the pillar industries of the national economy, China's auto parts industry has a long way to go in the future. In the face of huge market development potential, after years of development, there are corresponding giants appearing in various product areas of domestic auto parts companies, such as Fast's transmissions; filters of Global, Leopard King, and Fleetguard; Lutheran , Kylin, Baiyun's brake pad products all enjoy a certain reputation in the international market and gain corresponding market share. In addition, many domestic auto parts companies that specialize in foreign trade are not to be underestimated in the international market. The advantages of multinational auto parts and components companies entering the Chinese market have so far led to the disappearance of only local auto parts companies in terms of quality and technology. Local auto parts companies have made product quality and core technology the main breakthrough in their development. Core direction. In addition, the brand awareness of domestic auto parts companies has also been greatly improved. The promotion and promotion strategies and multinational auto parts and components manufacturers are irrespective of whether they are involved or not. This has brought a lot of pressure on the development of multinational auto parts and components companies in China.

Many local auto parts companies have stated that they will enter the international market in the future and develop national auto parts enterprises. At present, some auto parts manufacturers in China are eager to open the international market, and the quoted prices are far lower than the average price in the international market. Actually, this is not a wise move: once one's own profit rate is very low, it is not conducive to the company’s Long-term development; Secondly, in the eyes of some big companies, it is not the lower the price, the better. Some big companies think that if a product does not have a reasonable profit rate, its product quality may be compromised. What is even more serious is that domestic enterprises that produce export products compete with each other in price competition and may cause foreign anti-dumping complaints. Therefore, when domestic manufacturers offer foreign companies, they must first master the international market and avoid the unfavorable consequences caused by random quotes. Luo Baihui believes that domestic auto parts companies need to develop the international market on the basis of maintaining a good market order. Only in this way can we achieve long-term development in the international market to compete with foreign-invested parts and components traders, and at the same time maintain a good image of Chinese auto parts companies in the international market and promote Chinese auto parts products and technologies.