Wheel hub industry competition intensifies integration and reorganization or unavoidable

Driven by the entire vehicle industry, China’s automobile wheel hub production maintained a double-digit growth rate. However, as the market competition becomes increasingly fierce, domestic automobile wheel enterprises need to get rid of chaotic competition in the industry and fewer leading positions, thus improving the entire industry. The competitive strength and overall profit level. Under this background, it is expected that in the next 3-5 years, automobile hub enterprises will have more intense and broader integration and restructuring.

Wheel hub industry will intensify intensified integration and restructuring Wheel hub industry will intensify intensified integration and restructuring

Automobile hub production and sales are better

In recent years, China's automobile hub enterprises have reorganized and reorganized their production and socialization and specialization have developed rapidly. They basically got rid of the pattern of “large quantity, small scale, and poor quality” in the past. The level of manufacturing has increased significantly and has become a domestic one. Vehicle factory supply system.

Private auto wheel hub enterprises are developing rapidly. Diversification of investment is taking shape, showing obvious growth and competitiveness. Not only has it become the main force for the spare parts supply in the aftersales market, but also it has been creating a number of internationally competitive automobile wheels. enterprise.

According to the data, from 2012 to 2016, the finished products of China's automobile wheel hub industry showed year-on-year growth. In 2015, China's automobile wheel hub finished product was 3.147 billion yuan, an increase of 3.66% year-on-year; in 2016, China's automobile hub industry finished goods were 3.822 billion yuan, an increase of 21.44% compared to the previous year.

From the point of view of industry sales revenue, the sales revenue of China's automobile wheel hub industry has increased rapidly year by year. In 2015, the sales revenue of the automotive hub industry reached RMB 91.204 billion, an increase of 5.22% over the previous year, which was the smallest year in recent years. In 2016, it achieved sales revenue of RMB 104.242 billion, a year-on-year increase of 14.29%.

It can be seen that the overall production and sales rate of the automobile wheel hub industry fluctuates, and the production and sales rate in the past five years is above 99%, reflecting its better connection between production and sales.

However, driven by the rapid development of China's auto industry, major domestic hub manufacturers have increased their production capacity. At the same time, well-known foreign parts and components companies have also successively invested and built factories in China, which has exacerbated the fierce competition in the market.

Automobile hubs will set off an integrated wave

The automobile wheel hub industry is a technology-intensive industry. As the user's requirements for the performance of the vehicle increase, the user has comprehensive requirements on the reliability, safety, and economy of the hub product, and has higher requirements on the manufacturer's technical level and service capability. In addition, due to the expansion of the automaker's products, the automotive hub enterprises are facing more varieties and more geographical development, and automobile wheel hub companies are facing intense pressure from the upstream and downstream industries.

At present, there are a large number of small companies engaged in hub manufacturing in China. Most of these companies provide OEM products for international and domestic brands. The profitability of OEM companies is relatively low, which is mainly due to the relatively cheap raw materials and labor in China. The increase in labor costs may result in their inability to continue operating. There are also some small auto parts companies that are imitations of products on the market. They do not have R&D design capabilities, and they have low product quality and quality, and they cannot meet the increasing demands of users.

At the same time, in more and more open international markets, domestic companies need to restructure themselves to achieve industrial restructuring, increase capital, production scale, and scientific research strength, thereby increasing the competitiveness of the entire industry, and with international leading international companies. contend. Moreover, fewer companies also reduce the disorderly homogenous competition, and competitive companies can focus on product development and customer service to provide more competitive products and better services.

It can be foreseen that the number of large and medium-sized wheel hubs in the automotive wheel hub industry will decrease, the number of subsidiaries and subsidiaries under large companies will increase, and large-scale integration among enterprises will be an inevitable trend. Systematic R&D, large modular supply companies, and specialized small and medium-sized companies will become mainstream companies in the automotive wheel industry.

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