What is the impact of the global financial crisis on China's auto parts exports?

The impact of the global financial crisis is further expanding and the automotive industry bears the brunt. At present, the giants including General Motors, Toyota, and Ford have lowered their profit targets for the 2008 fiscal year. The latest report shows that only the average US sales in September It fell by 26%, the biggest drop in 50 years.

In this downturn of the global automotive industry, how do Chinese auto parts suppliers view the export market?

"Parts and exports can be divided into two categories: export supporting and export aftermarket." Chen Wenkai, president of Geely Automotive, a well-known automotive e-commerce platform, stated that "it is clear that the total demand in the international auxiliary market is declining and it has returned to the beginning of the year. The level may take another one to two years, so suppliers already involved in international support may face a reduction in the planned volume of orders.

However, Chen Wenkai also believes that the procurement of multinational companies from China has only just begun. When these companies face more fierce competition in the domestic market, in order to reduce costs, as long as the appreciation of the renminbi does not accelerate, to expand to China to purchase parts and components The possibility of a large category means that the potential for supporting export growth is still huge. The recent significant increase in the frequency of inquiry orders issued by Gaston Motors in Europe and the United States is a testament to this.

The situation of exports to the after-sales market is slightly different: the demand for the after-sales market is much lower than that of the matching market. In the first half of the year, the demand for the aftermarket in the United States still maintained a growth of about 5%, largely because many people saved Expenses do not buy new cars and repair old cars. While more European and American consumers may be willing to choose more competitive Chinese products during this period, this may mean more opportunities for Chinese companies. In short, for most Chinese domestic parts and components companies, the total demand in the international market will decline due to the financial crisis and it will be less than the impact of rapid appreciation of the renminbi on exports.

In the dilemma overseas auto parts market, domestic companies are generally in confusion. In response, Chen Wenkai said that the crisis is also a new vitality from another perspective. At present, auto parts companies should take the initiative to contact buyers and effectively help buyers reduce procurement costs. Only when we move forward together can we create a win-win situation. The supporting market procurement cycle is usually 1-2 years long, and the aftermarket procurement cycle is at least half a year. Therefore, the actual supply may be half a year or even two years later. At that time, the crisis may have passed, but now it is difficult. Taking the initiative to reach out to buyers is an excellent opportunity to develop new buyers.