Tokai Chemical(TianJin) Ltd.

 

First factory: No. 6, Juying Road, Jinnan Economic Development Zone, Tianjin
Second Factory: No. 21, Baoyuan Road, Jinnan Economic Development Zone, Tianjin
Tel:
022-58790768
Fax:022-59790706

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The total profit of the auto parts industry is still growing

Classification:
Industry news
2019/07/16
From the industry operation from January to October in 2010, the total profit of the auto parts industry is still growing, yet with a slowing growth rate; the import and export volume are also increas

From the industry operation from January to October in 2010, the total profit of the auto parts industry is still growing, yet with a slowing growth rate; the import and export volume are also increasing, with the imported products being mainly high-margin, high value-added, and high-tech products such as the gearbox and engine parts, and the export products being mainly labor-intensive and resource-consumption products with low profit and low barriers to entry, such as tires and electronic instruments.

From the industry operation from January to October in 2010, the total profit of the auto parts industry is still growing, yet with a slowing growth rate; the import and export volume are also increasing, with the imported products being mainly high-margin, high value-added, and high-tech products such as the gearbox and engine parts, and the export products being mainly labor-intensive and resource-consumption products with low profit and low barriers to entry, such as tires and electronic instruments.

The downstream vehicle industry had overcapacity in a certain period of time, although there has been unconventional rapid growth under the national stimulus policies in 2010. The growth rate of production and sales slowed down in 2011, and the pressure on overcapacity increased, therefore the auto parts industry may be under pressure from larger profits in the second half of the year. The main problems facing the auto parts industry are being squeezed by both upstream and downstream with double pressure, and lacking bargaining power for the upstream and downstream. The upstream raw materials are mainly steel, rubber, plastics, fabrics, etc., whose price are ultimately determined by the prices of staple commodities such as steel, petroleum, and natural rubber, and the auto parts enterprises can only avoid risks by judging the trend of upstream commodity prices. At the same time, the downstream vehicle manufacturers, most of which are large enterprises, are in a superior position in the interest competition with the parts manufacturers, with strong negotiating ability and the capacity to transfer the cost pressure to the auto parts industry. Therefore, the parts industry is actually at the central position of "sandwich" squeezed by both ends.