In the first half of the year, the export of auto parts has been booming.
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In the first half of the year, exports of auto parts were relatively bleak, but the domestic market was in a good position. This was primarily due to the unexpectedly large increase in domestic auto sales. Since the beginning of the year, the year-on-year increase in the retail sales of passenger cars has always been higher than the year-on-year increase in wholesale sales, reflecting the strong domestic demand. Display terminal requirements are still huge, as can be seen from the lower inventory coefficient.
Industry analysts believe that residents in third- and fourth-tier cities currently have high enthusiasm for car purchases and that car consumption has become "just-needed". Therefore, there is more room for autos to see the market. With the implementation of the newly introduced "Three Guarantees Law" for automobiles, the threshold for parts and components companies will increase, and there are many opportunities for advantageous parts and components companies to integrate with overseas mergers and acquisitions. These advantages mean that the domestic auto parts companies have a good situation.
The "Three Guarantees Law" for cars that has been planned for seven years will be officially implemented on October 1 this year. Among them, there are clear and inflexible provisions for parts and components. Obviously, strict regulations on parts and components must have a profound effect on the industry. Of course, this is undoubtedly a strong blow for those who take advantage of counterfeiting to gain market access, but it is good for companies with excellent quality, which will help parts and components listed companies to obtain orders and maintain gross profit margins, and achieve strong and consistent.
This is a big challenge for companies with a technical level and quality control ability that is somewhat different from the original ones. Therefore, to obtain a market, it must comply with relevant standards. This will inevitably enable related companies to improve their internal management, product technology, and quality. Some companies that are incapable or who are mainly fake and shoddy will be eliminated to optimize the industry. Integration, the formation of a healthy and orderly market.