•   Terms  
  •   Policy  
  •   Guestbook  
  •   Contact Us  
  •   News Center  
  •   Products  
  •   About Us  
  •   Home  

  • About Us

    Our culture

    Product show

    Factory Show

    Sales Market

    News center

    our news

    Parts and components industry profits by squeezing the Chinese market pattern of being re-demarcation

    Faced with domestic labor costs and rising raw material prices and new external competition arising from the profit impact, the integration of China's auto parts industry in the end to where » Global consulting industry experts AlixPartners has released the latest report said that China's auto parts market pattern is being redrawn, and 56% of the interviewees said that providers will be interested in future participation in the global mergers and reorganizations.

    Internal and external - all ended in huge new challenges

    Focus on enterprise restructuring and financial adviser AlixPartners to provide the survey results show that China's auto parts industry is whether growth or profitability of the industry's performance is better than car manufacturers. As of January 2007, the country registered a total of 5,402 auto parts companies, including six in 2006 sales exceeded 1 billion U.S. dollars. However, AlixPartners have not been able to "First Financial Daily" said that the specific names of six companies.

    Data showed that from 2004 to 2007, China's auto parts industry to 31 percent a year compound annual growth rate of growth in 2007 reached 7 percent of the industry average net profit margin, while China's automobile manufacturing enterprises in the industry average profit margin of 4.5 %. In addition, studies show that from now to 2011 has been the rapid growth of China's light vehicle market in 2003 will have an annual growth rate of 19% on the basis continue to reach 15 percent compound annual growth rate. The study also found that Chinese auto parts enterprises in total exports now account for 14% of total sales, while the 2003 has a compound annual growth rate of 35 percent, exports of many enterprises important source of profit, but the deteriorating situation.

    The report holds that China's auto parts enterprises in terms of internal or external will face enormous new challenges. From the outside, is the appreciation of the renminbi and the implementation of the auto parts exports of value-added tax rebate policy to reduce (according to the latest policy last year to reduce the export of tyres and car glass of the tax rebate rate). Internally, single-value-added tax policy reforms and the appreciation of the renminbi will increase more than 10% of the costs, in addition to energy and raw materials prices triggered by increased costs. China's auto parts supplier can not be all the rising costs onto all customers, if they can not significantly reduce costs and profit margins decline is obvious.

    China's auto parts suppliers, in particular Zhugong the domestic market auto parts suppliers face the most severe test. This is because the decentralized sectors: automotive components manufacturing companies in China top 100 enterprises in the market share of the trade accounted for only 50 percent, far lower than other countries in the concentration of the other because of their low technological contents. According to the survey, China's auto parts enterprises extensive use of joint ventures and the purchase of technical means to permit access to new technology, most of the technology now funded Sino-foreign joint ventures is essentially controlled by foreign capital, technology which can not be local competitors access to China .

    Against China in the local auto parts supplier's senior management staff of the survey, respondents said that a considerable part of 2007 with a profit margin decreased significantly compared to 2003, 67 percent of the respondents predicted the profit margin will be the next three years Continue to decline. China's local auto parts supplier's net profit of joint ventures and poor compared to a full two percent.

    International reorganization of the opportunities and difficulties

    In the field of 25 cars work experience AlixPartners executive director Stefano Aversa told "First Financial Daily", China's auto parts industries and enterprises of the status quo is the one hand, China's auto parts industry in the next few years with high growth potential, and the other On the one hand, the industry is also faced with many dilemmas but necessary to make rapid decisions, including those unable to prevent the pressure on existing investments or threaten these challenges into opportunities, thus becoming China's leader in the industry.

    According to the supplier AlixPartners study, many Chinese auto parts companies have a clear understanding that another way, that is, international mergers and reorganizations. In the interviewed companies in the top 90 percent said that considering the possibility of mergers and reorganizations, of which 56 percent of executives said that the international mergers and reorganizations within the context of the same consideration. Among them, access to technology and R & D potential mergers and reorganizations is the primary driver, followed by access to distribution channels and customers, the last business management skills upgrading is one of the driving factors.

    Stefano Aversa told this reporter that they found in the survey, 80 percent of the parts and components enterprises in the near future that will implement the merger, although most of them do not lack money, but experience in mergers and acquisitions and synergies after the merger there are blind spots . Napster ended March with 410,000 and the international M & A action for the local community leader in parts of Wanxiang Group, Stefano Aversa that the acquisition is the universal number of U.S. spare parts for medium-sized enterprises, rather than a world-class large companies, so relatively easy to integrate some, A very sensible approach, the future is expected to be more and more Chinese enterprises.


    China Lutong diesel Parts Plant is a manufacturer specialist in diesel engine parts.Our majored products is Ve Pump,diesel injection parts, diesel nozzle,diesel fuel injection system,and the interrelated products (such as Head Rotor,Feed Pump ,Cam Plate, Drive Shaft , Manget Valve , etc.),Diesel Plunger(A ,AS,P,PS7100,P8500,MW type, etc.) ,Diesel Nozzle (Dn,DNOPDN,S,SN,PN and so on.),Delivery Valve,Cat Pencil Nozzles and so on.
    Copyright by China-lutong diesel parts plant All Right Reserved