Some powerful spare parts factories showed a fearless attitude during the interview: “Expanding overseas markets will be the focus of our future development.†This seems to have the meaning of clamouring with domestic automakers.
The industry generally believes that the price of iron ore is estimated to be 71.5%, and the domestic steel market has a rising price range of around RMB 200. A person from CNHTC stated that the price of iron ore is transmitted to commercial vehicle companies. Above, the cost per ton of steel will increase by about 500 yuan; Zhu Jialiang, assistant general manager of Dongfeng Yueda Kia Motors Co., Ltd., believes that economical cars may increase the cost of about 1,000 yuan per vehicle.
In addition to sustaining the pressure of rising prices of raw materials, parts and components companies also have to bear the pressure of price reductions imposed on them by vehicle companies. A tire company official said: “When we talk about OEM OEM prices with domestic vehicle manufacturers, we need to bargain as if we were buying food at the food market.â€
"Raw raw material prices and OEM manufacturers' prices have forced us to begin OEM support for a foreign vehicle company," said Quan Quanfa, general manager of Shanghai Zhongli Auto Parts Co., Ltd.: "Overseas markets will be the focus of our future development." Ernst & Young believes that there will be a large increase in the export of auto parts and components manufactured in China in the near future, which may bring changes to the global auto parts market and industrial structure.
According to the analysis of the entire law, the biggest advantage of exporting to overseas markets is fast cash flow, financial risks and financial costs are lower than domestic OEM support. “The period for repatriation in foreign markets is relatively short, and it is generally possible to recover the payment within one month. However, for OEM companies in China, it is possible to return funds in half a year,†said Chen Wenkai, an automotive analyst.
“To do the overseas market is generally a single species, but the volume is large, so that our previously idle production capacity can be used to reduce the fixed costs of enterprises, buffer pressure on the price of raw materials. In addition, the state to implement export tax rebates to encourage the export of automobiles and parts and components. The policy is also very attractive to us," said Yan Quanfa.
Previously, there were two types of auto parts companies that were doing overseas markets: one was high-tech companies, and they generally positioned the overseas market as the main market from the very beginning; the other was the zero selected by multinational corporations such as GM and Ford. Parts companies. “The pressure of raw material prices has made it difficult for some companies that originally provided domestic OEMs with OEM support to live well. The pressure of survival has forced them to focus on overseas markets,†said Chen Wenkai.
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