The trend of the parts and components industry represented by international component giants has shifted its sales focus to the automotive aftermarket.
"Last year, China Automobile Association reported that the output value of the auto industry was 600 billion yuan, but this does not include parts and components. The data provided by a professional website is about 700 billion yuan in the auto aftermarket. This is a big cake." A person in charge told reporters very excitedly.
Regardless of whether or not such data sources are accurate, at the recent Shanghai International Automobile Parts, Maintenance Testing Equipment and Service Products Exhibition, the parts and components industry represented by the international parts giants shifted their sales focus to the automotive aftermarket. Trends are now emerging.
There is no doubt that in this market, parts and components companies play the role of vehicle companies in the automotive industry, because it is possible to obtain great profits and brand reputations by mastering the most important products. This has also become the biggest driving force for auto parts companies to increase their auto aftermarket business.
Good long-term
“We are engaged in the after-sales market business that has been affected, especially in the heavy-duty vehicle sector. Some large customers such as enterprises and mines, because of the bad economic situation in the second half of this year, the team has reduced or even stopped operations, and the service is in use. The automotive aftermarket has a certain influence, and these businesses directly affect the business of our aftermarket."
On the business card of Zheng Dazhi, general manager of Bosch Trading (Shanghai) Co., Ltd., the words “automotive aftermarket†were printed on the card, which also explains the difference between them and other Chinese subsidiaries of Bosch. But the same thing is that in November, which was supposed to be the traditional peak season for automobile aftersales accessories and repairs and maintenance, Bosch's trade performance has dropped.
However, Chen Jianpeng, general manager of Bosch Automotive Inspection Equipment (Beijing) Co., Ltd., who is preparing for the development, is obviously much more optimistic. "If you have the opportunity to read our report next January, you will see a very good December sales data. “Let Chen Jianpeng be so confident that Bosch Trade made the first appearance of the three major brands in the aftermarket after the merger and acquisition of Bisbat and Kinder Instruments. Its plan to integrate the strength of the aftermarket network and seize the market share in the financial crisis instead accelerate.
In fact, compared to Bosch's production cuts at India's parts factories, China's auto aftermarket is similar to the entire vehicle market, and is favored by various parts and components companies for its potential and high profits.
Cold market
An often-mentioned data is that, in the mature internationalized automobile market, the sales profit of automobiles accounts for about 20% of the profits of the industry, the profits of spare parts supply account for about 20%, and the profits of nearly 60% come from the service sector. The Chinese auto market is obviously still far from mature, of which the profitability of the auto aftermarket can be imagined. For parts and components companies, no matter the OEMs in the financial crisis are cutting production or cutting costs, they are the first to bear the brunt of “expropriation†targets. The downstream distributors are close to breaking down, and only the upstream component suppliers can press down. price.
In the field of complete vehicles, profits have been greatly reduced, and parts factories have to start looking for more sources of profits. It is also reasonable that the "hotbed" in the winter after the auto market is being favored. “The car sales are declining, but the amount of possession is still large. The people who use the car have to maintain it.†The words of an exhibitor and part manufacturer may be the consensus of the industry.
Although Zheng Dazhi also stated that the impact of the financial crisis in 2009 will lag behind in the automotive aftermarket, it is clear that multinational companies such as Bosch still have the strength to “buy this low†and quickly seize market share. The Bosch Group plans to continue to invest 850 million euros in the Chinese market between 2008 and 2010.
Among these, the acquisition of some domestic Chinese companies such as Kinder Instruments, Shenzhen Chebos, etc. has become an important means for international giants to quickly seize their share, and how domestic component manufacturers can cope and even share a cup of this huge market. Oh, but no signs yet.
As for the loss of this case, it is worthwhile to bear it! To put it plainly, for the domestic companies to gain the opportunity for growth, we lose face and win the race, nothing to steal it
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