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Total profits in the auto parts industry are still growing

Author:
Source:
Release time:
2019-01-14
【Abstract】:
From the operation of the industry in January to October 2010, the total profit of the auto parts industry is still growing, but the growth rate is slowing down; Imports and exports also increased, but the import products are mainly high-profit, high-value-added, high-tech products such as gearboxes and engine parts, while the export products are mainly labor-intensive and resource-consuming with low entry barriers and thin profits such as tires and electronic instruments.

From the operation of the industry in January to October 2010, the total profit of the auto parts industry is still growing, but the growth rate is slowing down; Imports and exports also increased, but the import products are mainly high-profit, high-value-added, high-tech products such as gearboxes and engine parts, while the export products are mainly labor-intensive and resource-consuming with low entry barriers and thin profits such as tires and electronic instruments.

Downstream vehicle industry in a certain period of excess capacity, although 2010 in the national stimulus policies under the emergence of unconventional high-speed growth, but in 2011 production and sales growth slowed down, excess capacity pressure, affected by its impact, parts industry in the second half of the year may bear greater profit pressure. The main problems facing the industry are squeezed at both ends, and the industry faces double pressure. The parts industry is squeezed at both ends, and lacks bargaining power for the upstream and downstream. Upstream raw materials are mainly steel, rubber, plastics, fabrics, etc., the price is ultimately determined by the price of steel, oil, natural rubber and other commodities, auto parts companies can only avoid risks by judging the price trend of upstream commodities. At the same time, the downstream vehicle manufacturers are mostly large enterprises and large groups, in a strong position in the interest game with parts manufacturers, strong negotiating ability, and can transfer the cost pressure to the auto parts industry, so the parts are actually in a "sandwich" sandwich position at both ends.