Summary of the auto parts market in the first half of 2013

More than half of 2013, summing up the development of the auto parts industry in the past six months, we found that the market is picking up and the data is improving. The auto parts market in the first half of this year has seen a glimmer of hope. In the sub-sectors of engines, transmissions, and automotive electronics, products and technologies are moving toward energy-efficient, intelligent and interconnected. While summarizing, we also hope to find out the future development trend.

In the first half of this year, the production and sales data of vehicle engines have just been released: in the first half of the year, the production and sales of vehicle engines reached 9.947 million units and 99.28 million units, up 11.87% and 10.68% respectively. From this data, the market seems to have picked up. This can also be felt from the statements of the parts listed companies. In the first quarter of this year, the operating income and net profit of listed companies of auto parts enterprises generally increased slightly, and the overall trend showed an upward trend.

Under the pressure of market adjustment, the pace of industrial technology and product upgrades around energy conservation, environmental protection and safety has accelerated. From the market performance of various mainstream parts companies, the product structure of the company has undergone significant changes, and the growth of new products and new markets has become more vital, which has become an important pole of business growth. The foreign-invested parts and components enterprises have greater penetration and control capabilities in the market, and they are more prominent in product and technology upgrades.

New products and new markets are growing rapidly

Whether it is in the fields of engines, transmissions, automotive electronics, axles or motors, there is a trend of rapid growth in new products and new markets. In the engine market, cars with natural gas engines sold 43,562 units in the first half of the year, double the number in the same period last year. Among the engine companies, Xichai is an example. In the first half of this year, it expanded rapidly in non-road machinery, buses and overseas markets. From January to May, Xichai exported nearly 6,000 engines, an increase of 14.7% over the same period of last year, and the product export structure also showed a trend toward high-tech content.

In the heavy-duty transmission market, the market performance of new products of Fast has also been very good. In the first quarter, under the severe situation that the domestic heavy-duty truck market still fell by 17%, Fast has begun to grow against the trend. In the first quarter, the production, sales and sales revenue of transmissions have all increased by more than 10%. The new sales volume mainly comes from the passenger car market, overseas markets and lightweight products. Its light-weight product sales are expected to grow from 35,000 units last year to 100,000 units this year. The market demand is very strong, and its overseas market growth has exceeded 10%. In addition, in the sedan market, there are more and more models that match automatic transmissions such as DCT and AT.

In the field of automotive electronics, Hangsheng, one of the leading companies, will generate about 40% of its total revenue from new products this year. Its upgraded in-vehicle infotainment system products have won a large number of new orders, maintaining a 20% growth, and it has achieved real market expansion in the body control electronic system. Its TPMS (tire pressure monitoring system) has received supporting orders from 17 auto companies such as FAW Car, Jianghuai and Great Wall, and the output will reach 10,000 sets next year. At the beginning of this year, the “Beidou Intelligent Vehicle Terminal and Provincial Operation Vehicle Platform Project”, which has been followed up for a long time, has signed a strategic cooperation agreement with a vehicle manufacturer for 100,000 vehicles in front of the Beidou navigation vehicle terminal.

Not only that, but with the enthusiasm of new energy vehicles, car networking, lightweight and other product technologies, the related auto parts products and materials are also developing rapidly. In the second half of the year, the effects of market restructuring will continue.

Foreign-funded parts and components companies perform strong

　　
At the Shanghai Auto Show in April, foreign-funded parts companies were enthusiastic, and dozens of international multinational giants such as Bosch, Delphi, Visteon, Aisin and BorgWarner participated in the show. At their press conference, the most heard is probably "We attach great importance to the Chinese market. We will continue to increase the capital increase and expansion in China and set up a research and development center." All of this stems from its presence in China. Market performance. According to the data released by these companies at the auto show, the Chinese market accounts for about 10% of the global market, and the future target is 1/3 or even higher.

Whether it is the vehicle sales market, the automotive supplies market or the after-sales market, the huge Chinese market is a huge temptation for multinational parts companies. Therefore, the localization process of multinational parts giants in China has accelerated significantly since last year. This localization not only includes the localization of product development, talents and management, but also the grasp of China's industrial policies and market demands. The products exhibited at the Shanghai Auto Show are closely related to the domestic energy conservation and environmental protection policy requirements. In the future, the domestic market will have a large number of products and technologies, and more attention will be paid to the practicality and economy of the products.

Not only that, foreign-funded parts and components companies continue to increase cooperation with local automakers. In the first half of this year, the boom of joint ventures between local automakers and foreign-invested parts companies continued. At the beginning of the year, German auto parts giant ZF and Zhaben Heavy Duty set up a joint venture in Chongqing. In April, Shaanxi Auto Parts Co., Ltd. and German auto parts supplier Eberhoff exhaust technology The international company established a joint venture company to provide Shaanxi Automobile Group with a commercial vehicle after-treatment system that meets National IV and future emission standards. At the Shanghai Auto Show, Faurecia and Changan Group formally announced the establishment of a joint venture. Not long ago, Faurecia signed a three-year technology development cooperation agreement with FAW Foundry Co., Ltd. to jointly develop a magnesium alloy overall seat frame.

The ever-expanding capacity scale, growing market share, and accelerating localization process... all of which make people feel that the multinational auto parts giant is aggressively attacking the market in China. These will continue in the second half of the year.

Policy becomes the driving force for industrial transformation and technology upgrading

Fu Yuwu, chairman of the China Automotive Engineering Society, believes that the future of automotive product technology, focusing on the three major development themes of energy conservation, environmental protection and safety, will follow the four development trends of electrification, miniaturization, light weight and intelligence. This should also be the focus of China's auto industry restructuring, transformation and upgrading.

In these respects, industry policy has played a very active role. In the second half of this year, many parts and components companies will also feel more and more pressure from the policy. From the "Methods and Indicators for Evaluation of Passenger Vehicle Fuel Consumption" issued by the Ministry of Industry and Information Technology at the end of 2011, the paper issued the "Opinions of the General Office of the State Council on Strengthening Energy Saving and Emission Reduction of the Internal Combustion Engine Industry" at the beginning of this year, and the industry policy continues to promote technological progress in the industry. Positive effects are emerging and have become an important driving force for technological transformation and product upgrading.