China's auto production and sales behind the world's most difficult

From January to June of this year, the scale of China's auto market reached 6.988 million, ranking first in the world. According to the normal logic, the auto parts industry, which is the basis of the auto industry, should be driven by the market to achieve rapid development. The facts are very different from our expectations. In the first half of this year, those suppliers of parts and components for commercial vehicle companies fell back as before, and the development capability of key parts and components was not improved because of the world's best.

For this reason, this edition organizes a series of reports from the perspective of market and research and development strengths to objectively reflect the real situation of the auto parts industry and hopes to take a more rational view of our world.

Commercial vehicle supporting companies are struggling to survive

In the first half of this year, China has leapt to the world's largest automotive market. However, this does not mean that the days of supporting parts and components in the upstream of the industrial chain will be better. Suppliers for different types of companies presented completely different living conditions in the first half of the year, which is in stark contrast to the phenomenon of China's auto market's increasing popularity.

Parts companies are not happy

On June 9th, Changchun Yidong Clutch Co., Ltd. released its 2009 interim results forecast loss announcement. It is estimated that the net profit loss for the first half of this year will be more than 20 million yuan, and the net profit for the same period in 2008 will be approximately 5.64 million yuan. The company had good profit performance in 2006, 2007, and 2008. The net profit was 8.12 million yuan, 8.35 million yuan, and 11.11 million yuan respectively.

In the interview, the reporter learned that Changchun Yidong is the first listed company in China's automotive clutch industry. The products are mainly hydraulic clutch turnover mechanism for automobile clutches and heavy-duty vehicles. It is a production base for commercial vehicle clutches with a large production scale, a wide product range and strong supporting capabilities, and it occupies half of the commercial vehicle market.

It is understood that the major cause of the significant losses in Changchun East in the first half of the year was that due to the recent sharp decline in the production and sales volume of heavy trucks in the automotive industry, the sales revenue of Changchun One Dongda Diameter Co., Ltd. decreased by more than 40%. In addition, at the end of 2008, the mainframe supporting manufacturers put forward price reduction requests, and the price reduction of some products also affected revenue and profits.

Corresponding to the loss situation of commercial vehicle supporting companies, part of the spare parts enterprises supporting passenger cars have unexpectedly high growth.

Hundano (Beijing) Automotive Chassis Systems Co., Ltd., which mainly supplies brake systems, suspensions and other chassis parts to a number of companies including Beijing Hyundai, Yueda Kia, Shanghai GM, and Chery, has been out of this year's rapid growth track.

“When the economic crisis first emerged last year, it was expected that the financial crisis would affect a long period of time. I did not expect that the domestic passenger car market had entered a trend conversely in 2009. In particular, the sales of several auto factories in the Mando market have performed very well. Now it has been working overtime.” Liu Shengxia, general manager of the company, told reporters that “we have invested 40 million yuan in the first half of this year and invested nearly 30 million yuan in the second half of the year to meet the needs of OEMs.”

Part of the fate of companies is vital

Although China’s automobile industry as a whole has maintained growth in the first half of this year, the phenomenon of inequality has been very prominent. In addition to the production of passenger cars and mini-vehicles, commercial vehicles such as passenger cars and heavy trucks have yet to see the dawn. A bus company sales manager told reporters: “In the short term, the production and sales figures will be difficult to restore to the original level. We have already prepared for the market to recover completely after two to three years.”

In order to deal with the decline in sales volume, many commercial vehicle companies have had to pass some pressure on suppliers while reducing their production costs.

"For a supplier with a certain strength, it is necessary to tide over difficulties with the company and there must be certain concessions in terms of price." The supporting person in charge of a commercial vehicle company told the reporter, "At the same time, the payment period has been appropriately extended. Our policy is to From the original 3 months to 4 months."

In the reporter’s interview with the supplier, it was learned that the account period was dragged from 3 months to 4 months, which is still relatively good. Many companies actually have much longer payment period.

Zhejiang Yuhuan is an important base for the production of auto parts in China, where many companies are supporting commercial vehicle companies. A local industry source told reporters that due to the lack of orders, the income of workers has dropped. Many workers from other places have gone home. There have been rare depressions in the streets in recent years. Some investors even cut meat and quickly withdrew from the car. Component industry.

Self-help is the only way out

In the face of declining supporting prices, some small companies can withdraw funds at any time. Most suppliers, in addition to trying their best to survive this “winter”, have no choice but to go. The total amount has declined, and price reduction is the first step to keeping the current market share as far as possible.

"Now that the OEM and the supporting plant are one heart, in order to maintain market share, even if some profits are sacrificed, they must get orders." Xiamen Golden Brigade's leader in charge told the reporter, "After getting the amount of order retention, the OEM and the supporting enterprise Try to digest it together."

In addition to lowering prices, the introduction of new products, improved management, and the development of new markets are common means for suppliers to increase their competitiveness.

“Currently, suppliers for commercial vehicle companies are generally unhappy. In the face of unfavorable market conditions, the only way out for the parts and components companies is to save themselves.” Vice President of Sales of Longzhong Holding Group Co., Ltd. told reporters, “We are rich. The product line and the launch of some new products have brought new growth points to the company. While the volume of vehicle manufacturers has fallen, we have strengthened our efforts to expand the aftermarket."

It is understood that the Longzhong Group mainly produces commercial vehicle brake systems and engine parts, which are among the enterprises that have been affected by the impact. From the sales data of this company, the year-on-year drop of 20% in the first quarter of this year and the decrease of 12% in the second quarter was not easy in the industry.

Although some powerful companies can partially resist market fluctuations, the industry generally believes that the signs of a full recovery of the commercial vehicle market have not yet emerged, and the industry reshuffle is inevitable. Some less powerful parts and components companies are destined to become victims.

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