Five Unfavorable Factors Constrain the Future Development of Passenger Car Enterprises in China


Since the beginning of the 21st century, China’s economy has developed at a rapid rate. Along with this, China’s urban and rural passenger traffic is increasing day by day. The supporting infrastructure in urban and rural areas continues to improve. The public transport system has become more refined and refined. The passenger bus industry in China has also entered the industry development. Spring.

The opening of Wuhan-Guangzhou high-speed rail, Beijing-Tianjin high-speed rail and Beijing-Shanghai high-speed rail have greatly refined the transportation industry in China. The role of passenger cars in some short-distance transport and urban and rural public transport systems is increasingly important. At the same time, with the recovery of the global economy, the demand for Chinese buses by some overseas markets has soared. The accumulation of these reasons has enabled Chinese bus companies to benefit greatly from last year.

Despite the obvious trend of the bus industry, the challenges of the entire industry in 2011 are still large. Rising raw material prices, shortage of automotive professionals, and lack of core technology deficiencies have contributed to the uncertainty of the passenger car market in 2011 and beyond.

This year, the rising cost of raw materials, the increase in financial costs, and the decline in the overall purchasing power of the community have caused the entire manufacturing industry to be very unstable. This was mainly due to the slowdown in sales growth and the increase in raw material costs. Although the sales volume of listed car companies is still in a trend of year-on-year growth, the growth rate has narrowed. Rising manufacturing costs will lead to a decline in corporate interest rates. Raw material prices will also follow the price transmission mechanism to increase the cost of vehicles and parts manufacturing companies.

Second, inflation expectations have become the biggest risk to the Chinese economy in 2011. The chain reaction that inflation may cause, along with the proliferation of agricultural products to finished food products and non-food products, the domestic inflation rate in 2011 may continue to rise.
Once again, the low-cost advantages that China has created are likely to gradually disappear. Because from the second half of last year, labor costs grew rapidly. In the future, it will be difficult to find cheap labor like two or three years ago. Since 2011, labor costs in China have generally risen by 5% to 10%, and some even exceed 15%.

In addition, the shortage of auto professionals, especially the lack of professional engineering talents, is a practical difficulty that bus companies have to face. It is reported that the “Mini-talent Talent Report” issued by the six ministries also pointed out: From now to 2015 and 2020 The automotive industry needs 31,000 and 50,000 R&D personnel respectively. The proportion of R&D personnel in auto-powerful countries accounts for 30% of technical talents, while that of China's auto industry is less than 8%. Senior skilled workers in developed countries account for more than 40% of workers, while China only has 4.3%. The shortage of professionals will not only affect product development, professional management, automotive distribution services, and even affect the improvement of automobile manufacturing.

Finally, the lack of core technologies in domestic passenger car companies will affect their development to a certain extent. Bus companies in China that are truly equipped with core technologies and overall design capabilities are rare, and most bus manufacturers continue their traditional assembly of passenger cars, engines, transmissions, and The core components such as axles rely on outsourcing. As we all know, the core technical station of the automobile accounts for a large part of the sales price of the entire car. The lack of core technology in China's bus companies also makes sales of passenger cars.

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