AutoBeta(AutoBeta.net)09/09 Report--

In the face of the continuous decline of the auto market, the same is true of domestic auto parts enterprises. About 130 domestic auto parts listed companies in A-shares have released their first-half results. Among them, the company's performance fell by more than 70%.

In the first half of this year, the auto parts industry as a whole performed poorly, with 77 companies, accounting for 59.23 per cent of revenue decline year-on-year, compared with only 28 companies, accounting for 21.54 per cent, last year. In addition, the net profit of the 130auto parts companies in the first half of this year was 21.198 billion yuan, compared with 26.337 billion yuan in the same period last year, down 19.51 percent from the same period last year, with a profit reduction of 5.139 billion yuan. Of the 130 companies, 95 had a year-on-year decline in net profit, accounting for 73.08 percent.

Some analysts said: "this is undoubtedly caused by the decline of the car market." The general environment of the automobile market has not yet changed, the survival of complete vehicle enterprises is difficult, and the parts and components enterprises are also difficult to avoid. "

Auto parts are the units that make up the whole processing of auto parts and the products that serve the processing of auto parts. On the whole, traditional auto parts can be roughly divided into seven categories, namely, engine, transmission system, steering system, braking system, driving system, body accessories and electronics.

In fact, the efficiency of automobile enterprises and auto parts enterprises is not good, layoffs and factory closures have become a major topic in 2019.

A few days ago, there was news that Guowei Technology, a supplier of an automobile mainframe factory in Zhejiang, was basically in a state of suspension of capital chain problems, and it was also caught in bankruptcy rumors, affecting the parts supply of more than a dozen mainframe factories, and in serious cases, it may also cause the mainframe factory to stop production. It also covers 14 mainframe factories that have been forced to stop production (including Volkswagen, Great Wall, Haima, Southeast, Zhongtai, Geely, etc.), most of which are self-branded cars, and the government and SASAC have been involved. " It is said that the relevant local departments have been involved in coordination. And the relevant mainframe factory gathered Guowei, want to transfer the production mold out.

Although it is difficult to tell the true from the false about Guowei technology, it is a fact that the chain reaction brought about by the decline in sales in the automobile market since last year has been transmitted from the whole vehicle enterprises to the parts enterprises.

According to the latest data released by the China Association of Automobile Manufacturers, automobile production and sales are generally running at a low level from January to July this year, with production and sales falling 13.5% and 11.4% respectively compared with the same period last year. This also has an impact on the parts enterprises in the middle and upper reaches of the automobile industry chain.

The experience of troubled parts companies is just a microcosm of the status quo of the industry. The sudden collapse of the big auto parts factory highlights many factors, such as its own business problems and the cooperative relationship with the mainframe factory, which reflects the depression of the automobile industry. But for some enterprises that do not master the core technology and can not keep up with the pace of market changes, both vehicle enterprises and parts enterprises will face the risk of being eliminated.

Generally speaking, at present, there are still some problems in China's auto parts enterprises, such as low market concentration, insufficient technical content of products, quality to be improved, large industrial scale but not strong, and so on, especially under the new situation of the "new four modernizations" of automobiles. the market of traditional auto parts is becoming narrower and the pressure is increasing. At the same time, spare parts enterprises are also facing the double pressure of falling prices of downstream vehicle products and rising prices of upstream raw materials.

In view of the current situation, some people in the industry suggest that targeted measures should be taken to find ways to solve the shortcomings in management, capital, operation, and so on. To strengthen technological innovation, while optimizing marketable traditional products, we should strive to have skills in the automobile "new four modernizations", earnestly improve product quality, and take the road of high-quality development.

The trend of survival of the fittest and changing birds in the field of auto parts business is inevitable. Only those parts enterprises that speed up the transformation and have core technology and exclusive advantages can win the market.

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