Analysis and Forecast of Commercial Vehicle Piston Market in 2009
The financial turmoil that swept through the world has turmoiled and has caused commercial vehicle and commercial vehicle engine and component companies to “fall into a trough.†Affected by this, the piston market for commercial vehicle engines has also “fluctuatedâ€.
In 2008, it was an extraordinary year for commercial and commercial vehicle engine and component companies. After a short period of “prosperity†in the first half of the year, with the implementation of the National III Standard in July, it quickly entered the “depression†period of July-August. According to the traditional law, entering September is the “golden season of production and sales†for commercial vehicles and commercial vehicle engines and parts and components companies. However, the financial tsunami that has swept the world has involved commercial and commercial vehicle engines and parts and components companies. "The trough" was influenced by it, and the Pistons market also "fluctuated."
In 2008, the production and sales of piston engines for commercial vehicle engines were 13 million and 12.95 million respectively.
According to the 1:1 ratio between the host and maintenance, the production and sales of commercial vehicle engine pistons in 2008 were 26 million and 25.9 million respectively.
Piston business environment
In recent years, with the rapid growth of the domestic automobile market and engine industry, the piston market of China's commercial vehicle engines has also been continuously enlarged and has achieved rapid development. At the same time, the Pistons industry has generally suffered severe tests such as the main raw material prices have been maintained at high levels, cost pressures have increased, capital is tight, and market competition has become increasingly fiercer. Therefore, despite the fact that each piston company “compensated more than three or five fights†over the same period last year, due to the influence of many unfavorable factors such as the price increase of digested raw materials, “the increase in production did not increase revenueâ€, profitability and level have decreased significantly, profits have been further diluted, and operating environment Deteriorating.
Cost pressure
Since the fourth quarter of 2005, the prices of major non-ferrous metals and precious metals have risen sharply again. The prices of copper, zinc and lead all hit record highs, and aluminum and gold prices also hit new highs for more than a decade. Global non-ferrous metal consumption growth has been operating at a high level. At the same time, the prices of major domestic raw materials have remained high, and the upward adjustment of energy prices such as coal and electricity has inevitably led to an increase in the cost of piston companies. Therefore, the issue of cost has always been a major problem that plagues domestic piston companies in recent years. Hunan Jiangbin Machinery (Group) Co., Ltd. is a specialized enterprise that produces and operates high and mid-range diesel engine pistons, gears, and oil pumps. Since 2006, even though the company has further intensified cost management and continued to implement the “Cost Storm Actionâ€, the company paid a tens of millions of yuan in the price of main raw material prices each year in 2006 and 2007. The second is the risk of price cuts passed on by the entire vehicle and the OEMs. The price of automobiles has been declining. Each vehicle and each OEM has passed its price reduction risk to various auto parts companies in order to ensure their own interests. Therefore, the prices of piston products have also been declining. The annual decline rate is about 5%. The company's profit margins continue to shrink. Third, the cost of product upgrades and structural adjustments has increased. In order to meet the needs of national security, environmental protection, and energy saving, especially with the gradual implementation of National III and National IV standards throughout the country, the industry and market demand for Piston's safety, environmental protection, and energy saving are increasing, which inevitably leads to piston companies. Product upgrades and structural adjustments require corresponding technological changes. This undoubtedly fundamentally increases the investment of piston companies in the scientific and technological content of products, leading to increased costs.
Danyang Weisheng Automotive Technology Co., Ltd , https://www.dywizsinparts.com