First half of 2013 auto parts market summary

In half of 2013, we summarized the development and changes in the auto parts industry in the past six months. We found that the market is picking up and the data is improving. The auto parts market in the first half of this year has given people a glimmer of hope. In the sub-sectors such as engines, transmissions, and automotive electronics, products and technologies are moving toward energy-efficient, smart interconnection. While summarizing and combing, we also hope to find out the future development trend.

In the first half of this year, the production and sales data of vehicle engines has just been released. In the first half of this year, the number of vehicles produced and sold was 9.947 million units and 9.928 million units, an increase of 11.87% and 10.68% year-on-year respectively. From this data, the market seems to have recovered. This can also be seen in the reports of parts and components listed companies. In the first quarter of this year, the operating income and net profit of the listed companies of auto parts companies generally increased slightly, showing an overall upward trend.

Under the pressure of market adjustment, the pace of upgrading technologies and products around the energy-saving, environmental-protection, and safety industries has accelerated. From the perspective of the market performance of various mainstream parts and components companies, the product structure of the company has undergone a marked change. The growth of new products and new markets has become more dynamic, and it has become an important pole of business growth. Foreign-funded parts and components companies have infiltrated the market and have stronger control capabilities. They are even more prominent in product and technology upgrading.

New products and new markets grow rapidly

Whether in the areas of engines, transmissions, automotive electronics, axles or electric motors, new products and new markets are rapidly growing. In the engine market, the sales of vehicles equipped with natural gas engines were 43,562 units in the first half of the year, which was double the number of the same period of last year. Among the engine companies, taking Xichai as an example, in the first half of this year, it expanded rapidly in non-road machinery, passenger cars and overseas markets. From January to May, Xichai exported nearly 6,000 engines, an increase of 14.7% over the same period of last year, and the export structure of products also showed a trend toward high-tech development.

In the heavy-duty transmission market, Fast's new product market performance is also very good. In the first quarter, under the severe situation in which the domestic heavy truck market still dropped by 17%, Fast has started to rise in a contrarian direction. In the first quarter, transmission production, sales, and sales revenue all achieved an increase of over 10%. The new sales volume mainly comes from the passenger car market, overseas markets and lightweight products. Its light-weight product sales are expected to grow from 35,000 units last year to 100,000 units this year. The market demand is very strong, and its overseas market has grown by more than 10%. In addition, in the car market, there are more and more models that match automatic transmissions such as DCT and AT.

In the field of automotive electronics, Hangsheng, one of the leading companies, will generate approximately 40% of its total operating revenue this year. Its upgraded car infotainment system products have won a large number of new orders and maintained a 20% growth, and it has also achieved true market expansion in the body control electronic system. Its TPMS (Tire Pressure Monitoring System) has received matching orders from 17 automakers such as FAW Car, JAC, and Great Wall, and its output will reach 1 million sets next year. Its long-term follow-up "Beidou Intelligent Vehicle Terminal and Provincial Operation Vehicle Platform Project" had already signed a strategic cooperation agreement with a complete vehicle company in the beginning of this year for 100,000 vehicle front-mounted Beidou navigation vehicle-mounted terminals.

Not only that, with the upsurge of new energy vehicles, networking, and lightweight product technologies, related auto parts products and materials are also rapidly developing. In the second half of the year, the effect of market structural adjustment will continue.

Strong performance of foreign-funded parts and components companies

At the Shanghai Auto Show in April, the participation of foreign parts and components companies was unprecedented. Bosch, Delphi, Visteon, Aisin, Borg Warner and other dozens of international multinational giants participated in the show. At their press conference, what we heard most was probably "We value the Chinese market very much. We will continue to increase the capital increase and expansion in China and set up an R&D center." And all this stems from its presence in China. Market performance. According to the data released by these companies at the auto show, the Chinese market accounts for most of its business in the global market at about 10%, while the proportion of the future market share is expected to account for 1/3 or even higher.

Whether it is the vehicle sales market, the automotive supplies market or the aftermarket, the huge Chinese market is a huge temptation for multinational parts and components companies. As a result, the process of localization of multinational component giants in China has significantly accelerated since last year. This localization not only includes the localization of product development, talent, and management, but also includes the grasp of China’s industrial policies and market demands. All exhibited at the Shanghai Auto Show are closely following the policy requirements of domestic energy conservation and environmental protection. In the future, the domestic market will have a large number of popular products and technologies, and more emphasis will be placed on the practicality and economy of the products.

Not only that, but foreign-funded parts and components companies continue to increase cooperation with local vehicle companies. In the first half of this year, the boom in the joint venture and cooperation between local vehicle companies and foreign-funded parts and components companies has continued. At the beginning of the year, the German auto parts giant ZF and Beiben Heavy Duty Auto set up a joint venture company in Chongqing and was established. In April, Shaanxi Auto Wanfang Automobile Co., Ltd. and German auto parts supplier Eberspäch exhaust technology The international company established a joint venture company to provide Shaanxi Automobile Group with a commercial vehicle after-treatment system that meets China IV and future emission standards. At Shanghai Auto Show, Faurecia and Changan Group officially announced the establishment of a joint venture. Not long ago, Faurecia signed a three-year technical development cooperation agreement with FAW Foundry Co., Ltd. to jointly develop the magnesium alloy integral seat frame.

The ever-expanding scale of production capacity, the increasing market share, and the accelerating localization process ... all of which can make people feel that the multinational auto parts giant is aggressively attacking the market in China. And these will also continue in the second half.

Policy becomes the driving force for industrial transformation and technology upgrading

Fu Yuwu, Chairman of the China Association of Automobile Engineering, believes that the future of automotive product technology will focus on the three major development themes of energy conservation, environmental protection and safety. It will follow the four major development trends of electrification, miniaturization, lightweighting and intelligence. This should also be the focus of China's auto industry structural adjustment and transformation and upgrading.

In these areas, industry policies have played a very active role. In the second half of this year, many parts companies will also increasingly feel pressure from the policy. From the "Method and Indicators for Evaluating Passenger Vehicle Fuel Consumption" issued by the Ministry of Industry and Information Technology at the end of 2011 to the publication of the "Opinions of the General Office of the State Council on Strengthening the Energy-saving and Emission Reduction of the Internal Combustion Engine Industry" at the beginning of this year, the industry policy continues to promote the technical progress of the industry. Positive results are emerging, and have also become an important driving force for promoting technological transformation and upgrading of products.

Wei Anli, deputy secretary-general of the China Internal Combustion Engine Industry Association, said in an interpretation of the "Opinions of the General Office of the State Council on Strengthening Energy-saving and Emission Reduction of the Internal-combustion Engine Industry," that the current policy orientation focuses more on supporting industry leaders in accelerating the construction of technological innovation systems, improving independent innovation capabilities, and stimulating the industry. Technology upgrades.

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