With the price of the whole vehicle falling and the cost of raw materials rising, who is in the worst situation?

 2021 is a very critical year for China's truck industry. The national six emission standards are upgraded, freight prices have fallen, and raw materials prices have risen. The intensity of competition in the entire industry is different from usual.

Under such a big environment, who is the most miserable person? Through the visit, we found that the situation of many domestic spare parts production makes people have to feel distressed.

● OEMs fight price wars and spare parts suppliers suffer

In recent years, with the rise of more and more truck brands, the competition for the home of OEMs hw19710t  has intensified. For a long time, price advantage has been the simplest and most successful way to compete among manufacturers.

Especially since the second half of this year, truck sales have gradually declined after the previous market overdraft. If you want to grab a bigger cake from the smaller plate, I believe that the price war will definitely continue for a long time.

However, the near-bottom adjustment of product prices also means a reduction in production costs. In addition to optimizing production lines and adjusting staffing, it has long been an open secret in the industry to reduce the prices of supporting parts suppliers.

According to industry sources, the annual contract renewal usually requires manufacturers to provide a certain price reduction, which has become an industry practice.

This kind of operation has been recognized by the industry and is understandable, but this year’s situation is quite special. Since July, truck sales have experienced a rapid decline, and the decline in truck production and sales also means a decline in demand for spare parts. Many spare parts companies The production line has been adjusted from last year’s full horsepower to a reduced production line start, which also means a decline in the income of spare parts companies.

In addition, under the influence of truck price wars, some manufacturers have begun to demand more substantial price reductions for parts factories. This has caused some parts factories to complain, but there is no better way to deal with them.

● The price of raw materials has risen, so parts factories can only pay for themselves

If there is only a price reduction requirement from the manufacturer, it may be said that the parts factory can still parry, but if we look at the increase in the price of raw materials this year, we can clearly see the various difficulties of the parts factory.

Putting aside the short-term problem of chip shortages facing the global automotive industry, we can see the clues only from the changes in the prices of raw materials required for the production of spare parts.

According to data, since January this year, the prices of various raw materials such as steel, non-ferrous metals, and plastics have risen sharply due to the sharp rise in the prices of iron ore and coke, the increase in exports, the reduction of market inventories, and the environmental restrictions on production.

Among them, steel rose by 27%, electrolytic copper rose by 18.5%, electrolytic aluminum rose by 47%, and plastics (PC) rose by 43%. At the same time, bulk materials such as energy and chemicals all rose to varying degrees. The sharp rise in the prices of these raw materials will inevitably push up the manufacturing costs of all kinds of spare parts.

However, it is worth mentioning that in the face of the adjustment of raw material prices, the spare parts factory as the purchaser has no bargaining power, and the power curtailment policy in some regions in recent months has had a certain impact on the production rhythm of the spare parts factory, but these difficulties In addition, companies can only digest their own bills internally.

● Transformation and upgrading or a reliable way out for the development of spare parts factory

In the rapid development of the truck industry, although domestic spare parts wg9921161100 factories play an important role in the progress of the industry, they have relatively few voices and their right to speak needs to be improved. However, if you want to change this situation, the spare parts factory must find reasons from strengthening its own construction.

It is understood that many parts factories are aware of the problem. On the one hand, they meet the current production needs by adjusting production line equipment and staffing to ensure that they will go forward. On the other hand, they increase investment in high-end talent reserves and R&D capabilities. , Follow the development trend of the industry and move towards the direction of high-tech and high value-added products to ensure better and longer-term development.

Science and technology are the primary productive forces. Only by mastering the transformation and upgrading of core technology may be the best way for auto parts companies to achieve better development.