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Analysis of the market growth trend of my country's auto parts industry in 2016
Classification: Company News
Release Time:2022-08-01 15:45
The growth of the global auto parts market will slow down in the short term. In the long run, the industry structure will fundamentally change, and suppliers that focus on products, customers and regional structures may benefit greatly.
The report pointed out that the global auto parts market has boomed in the past few years, and has always maintained a high level of profit margins. Since 2011, the global EBIT margin of auto parts suppliers has continued to rise, reaching an all-time high of 7.5% in 2014.
The report believes that volatility and uncertainty in the global auto industry continued to increase in 2015. Global light-vehicle production is expected to continue to rise over the next two years, but at a steeper rate of decline. Among them, Europe will maintain a low level, Japan will decline, NAFTA will grow moderately, and China will remain the only major growth driver. In addition, OEMs, facing increasing pressure on margins, have begun cutting additional costs, increasing friction between OEMs and suppliers. Therefore, the report predicts that while suppliers maintain high profit margins, short-term growth will slow down, and downside risks outweigh opportunities.
Roland Berger believes that due to the further influence of factors such as the continued transfer of end customer demand to Asia, the downstream expansion of raw material suppliers, and the fluctuation of currency and capital markets, the uncertainty faced by auto parts suppliers in the future will increase, and the industrial structure will change from Fundamentally changes and will redistribute product and sector benefits. For auto parts suppliers, this environment will create more opportunities and risks. As far as the case is concerned, the profit margin of Chinese suppliers still has a leading advantage, but due to fierce competition, its profits are gradually declining. In the next few years, China will remain the largest market for automotive end-customer demand, and Chinese customers' demand for entry-level vehicles has risen significantly, posing challenges to the quality and technology of local OEMs as well as the cost of Western OEMs. In the long run, 2 to 3 competitive Chinese Tier 1 suppliers will appear in the top 30 global suppliers. As the number one automobile production base in China, the gap between local suppliers and global counterparts in related fields is gradually narrowing.
The "Research Report on the Development Status of China's Auto Parts Industry and the 13th Five-Year Plan" believes that suppliers should seize the next wave of opportunities to improve efficiency without restricting their flexibility to quickly adapt to more uncertainties and Volatile market developments. At the same time, suppliers should be prepared to benefit from industry relocation and mitigate the associated risks in the medium to long term.
In the short term, suppliers should improve intelligent efficiency; increase or maintain flexibility throughout the value chain in production, R&D and procurement; stimulate the initiative of key resources to ensure that they can join possible working groups at any time; strictly manage investment decisions and one-time charges; carefully monitor market developments and signals of possible market decline.
From a long-term perspective, suppliers should maintain or improve a unique selling proposition, highlighting clear technological or process differences; focus on product areas with above-average growth rates and profit potential, and actively capitalize on M&A opportunities; both from a revenue perspective Also from the perspective of creating value to balance regional share and customer share; establish the best process and structure to maintain flexibility and efficiency in a more complex global layout; apply scenario simulation technology to regularly review and adjust previously formulated strategies.
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