Supporting the market decline, auto parts exports are still warm
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Recently, a number of domestic agencies released the first quarter of auto parts and related data seems to show that auto parts exports have shown signs of recovery. Most of the export bases of parts and components in Guangdong, Jiangsu, and Tianjin witnessed rapid growth. In the first quarter, Guangdong exported 470 million U.S. dollars worth of auto parts, an increase of 41.3% over the same period of last year; Tianjin's auto and auto parts exports increased by 56.9 percent year-on-year. %; Jiangsu Port accumulatively exported auto parts and components totaling 170 million U.S. dollars, a year-on-year increase of 73%; Wuhu, Anhui Province, including mechanical and electrical products including auto parts and components, realized total import and export volume of 357 million U.S. dollars, a year-on-year increase of 53.06%. Did the export of components really pick up? The feedback from industry experts and export companies is that it is too early to say that parts exports are picking up.
“Because the same period last year was the lowest level of China's auto and auto parts exports, this comparison is not comparable. From quarterly data we have, we can see that in terms of total export volume and total export volume, export data for the first quarter of this year Compared with the fourth quarter of last year, it was basically the same, said Yang Aiguo, a researcher at the Automotive Subcommittee of the Chinese Chamber of Commerce for Machinery & Electrical Import and Export. Looking at the month-on-month comparison, March did have a slight increase from February, but taking into account that February is the traditional off-season, this growth does not have much reference. He also said that from the data point of view, the product structure of China's spare parts exports has not changed much, and it is still dominated by products with lower technological content, and fewer key components have been exported. The export destination countries mainly include the United States, Japan, Germany and South Korea.
This year's component exports have performed quite differently in both the supporting and aftermarket areas. “In the auxiliary market, as the European and American auto markets remain sluggish, supporting supply continues to decline. The aftermarket is clearly recovering. This shows that many countries' automotive aftermarket has not been significantly affected by the financial crisis.†Chen Wenkai believes that the parts and components market account for The total export volume of parts and components is between 30% and 40%, subject to the sluggish supporting market, and overall auto parts exports will grow slightly this year. Judging from the product export structure, except for the tires that had experienced a sharp decline in foreign anti-dumping restrictions in the previous period, the product structure has not changed substantially.
Compared to 2009, the days of many parts and components export enterprises in China seem to be much better. It is understood that most of the products of these companies face the aftermarket. A number of auto parts companies said that in the first quarter of this year, orders from overseas increased significantly compared to 2009. The strong demand in emerging markets is an important reason for the growth of orders for many parts and components companies. Xinyi Yi, Marketing Manager of Xinyi Glass, told the reporter that Xinyi Glass's exports have steadily increased since the beginning of this year, and the traditional market has declined slightly compared with last year. The company's export growth mainly benefits from the expansion of emerging markets such as South America and Africa in the early stage of the financial crisis. Ma Yixuan said that the traditional market is still very much affected by the financial crisis.
"In the process of developing new markets, enterprises must not only increase product development efforts, but also optimize product structure as soon as possible and increase product added value," said one person in the industry. This year, a series of policies to encourage the export of automobiles and auto parts will be gradually implemented. Enterprises must seize the policy opportunities while improving product quality and enhancing international competitiveness. Starting in January this year, China and ASEAN have established free trade zones, benefiting from the reduction of tariffs, the Southeast Asian auto market will flourish, and China’s auto parts exports will usher in new opportunities.
After the baptism of the financial crisis, many of the major export-oriented parts manufacturing companies, aware of the risks of foreign markets, began to focus on deepening the domestic market potential. For example, Shandong Jin Qilin Group, whose brake pads account for 80% of its total output, not only has successfully weathered the crisis, but has also taken the initiative to adjust its development direction this year. It has shifted from focusing on foreign markets to both domestic and foreign markets. The aftermarket shifts to both the matching market and the aftermarket.