Reduction profit auto parts export winter
Wan Feng Auto Vice President Xia Yuezheng is hosting a group of German customers in recent days. Compared with past inspections, he paid more attention to product quality, price, and other aspects. At the moment, they have turned their attention to the company's financial strength and sustainable development capabilities.
As a well-known supplier of automobile wheels, Wanfeng Auto’s exports this year are not optimistic.
“As far as spare parts export companies are concerned, the increase in exports this year can be quite good compared to last year. What's even more unfavorable is that the situation of increasing revenues and not increasing profits is very serious.†Xia Yue’s opinion is that parts and components exports are facing a “winter seasonâ€. .
This is similar to the view of Xu Changming, director of the Information Resource Development Department of the National Information Center: "Because of the shrinking global economic crisis, the appreciation of the renminbi, and the intensified market competition, China's spare parts exports have slowed down significantly."
However, most spare parts companies are not pessimistic. “The industry's new round of reshuffling is inevitable. Enterprises that can survive the low tide period are expected to have a bright future. It is precisely the opportunity and the challenge that coexist.†Xu Changming said.
Sales decline in profit reduction
Shaanxi Fast had already felt the market bad. “Fast exports reached 50 million U.S. dollars in 2006 and fell to more than 30 million U.S. dollars last year, mainly due to the sluggish US auto market. This year, the U.S. market continues to decline, coupled with the recent financial crisis, and Fast exports this year. Estimates are even lower than last year, said Yan Yufeng, Deputy Minister of Propaganda Department of Shaanxi Fast.
Xu Changming analyzed that the major exporters of Chinese auto parts and components companies are concentrated in developed countries. The global economic crisis that began at the beginning of this year has led to a sharp decline in international car sales, especially in key export markets such as the United States and Europe. The reduction in market demand will inevitably lead to a decline in exports.
As the leader of domestic auto brakes, Shandong Jin Qilin adjusted its strategy at the beginning of the year and increased exports in the EU. Currently, it maintains a 20% growth rate, but it is also not optimistic. He fears that the adverse effects of this crisis will soon spread to the EU market.
While the volume of exports is slowing down, the decline in profits is even more problematic.
According to Minister of Commerce of the Department of Export Department of Jin Qilin, “The factors such as the appreciation of the renminbi and the price increase of raw materials have greatly affected export profits. Even if this year's export volume maintains the same growth rate as last year, it is difficult for profits to achieve the same growth.†As Delphi, NAPA The annual supplier, Shandong Jin Qilin exports accounted for more than 90% of total output.
What is even less optimistic is that "not only does the renminbi appreciate against the US dollar, but also the currencies of many countries such as the Euro appreciate." Statistics from Great Wall Motors, an export vehicle company, show that in recent years, the profit loss of car exports on the exchange rate is not Less than 10%.
“This is true of vehicle companies. What's more, most of the export of spare parts and components companies are developed countries. They are more severely affected by the economic crisis and the currency depreciation rate is even greater.†Xu Changming believes.
Opportunities in the Challenge
On the verdict of China-U.S., EU-Canada tripartite auto parts disputes, the Ministry of Commerce delegation will arrive at the Geneva WTO headquarters for a final hearing. Cui Dongshu, deputy secretary-general of the National Passenger Vehicles Association, believes that this case has lost several lawsuits. Affected by this, multinational corporations have slowed the pace of localization, and the proportion of imported CKD trucks has continued to grow, while the enthusiasm of multinational groups purchasing parts and components from China has tended to increase. decline.
In addition, the international auto giants' deployment in China has also made the pressure on the domestic market even greater.
Franz Ferenbach, chairman of the Bosch Group, announced that Bosch’s sales in China this year are expected to reach 2.3 billion euros, an increase of 30% over the previous year. In the next three years, Bosch will continue to invest approximately EUR 200 million in diesel common rail systems to develop cleaner and safer driving solutions.
As the world’s leading provider of commercial automotive electronic braking, stability, suspension and variable speed control systems, WABCO also stated that WABCO’s sales in China in 2007 increased by 100% year-on-year, and will pay more attention to the Chinese market in the future. .
Zhang Hao, deputy director of the Department of Mechanical and Electrical Industry of the Ministry of Commerce, gave the industry a shot in the arm. He believes that there are promising auto parts exports. "The comparative advantages of parts and components of the Chinese automobile industry will be long-term and irreplaceable."
Now, the Ministry of Commerce is committed to building an international platform for the exchange of spare parts. On November 12th, the “China International Auto Parts Exhibition†newly created by the Ministry of Commerce will be held in Beijing. The Ministry of Commerce hopes to take this opportunity to bring Chinese spare parts to the world and attract more foreign companies to invest in China. We hope to bring China's "comparative advantage" to the end.
Xu Changming also believes that there are more opportunities in the challenge. “Industry reshuffle is conducive to standardizing export order and promoting industrial upgrading.†At the same time, the economic crisis has made many international parts and components companies unsustainable and will provide opportunities for powerful Chinese parts and accessories companies to expand overseas through mergers and acquisitions.
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