Parts companies: the supporting market and the post-market decline

"The economic crisis has a limited impact on the auto parts industry. The Chinese market is relatively special."

“Consumers began to shift from buying new cars to servicing old ones. The market demand for cars is relatively stable...”

When the vehicle sales have been hit hard, has the status of parts and components manufacturers that have traditionally been considered as “scattered and scattered” really been the case? The reporter’s investigation found that in fact, the decline in the sales of parts and components is “accelerating” and, unlike the traditional sense, the aftermarket The degree of influence is equal to the matching market.

The supporting market fell by 50%

"We do not have as much vehicle sales as a lot of sluggish sales. At present, Dongfeng's sales volume has dropped by 30% to 40% over the same period of last year," said Xia Bogao, general manager of Dongfeng (Wuhan) Parts Sales Service Company (hereinafter referred to as Dongfeng Company). However, the decline in sales volume is constantly 'accelerating', the situation is 'deteriorating' and it is in a trend of expansion. Because we do not know how much it will develop, we are very 'cautious' everywhere and everything is in order to survive the 'bottom' of the first half of next year. ."

According to him, the overall sales volume has started to decline since August, with obvious effects in September and October and accelerating in November and December. As Dongfeng’s inventory control is relatively good in the industry, the backlog is low, and the reserves of funds are relatively sufficient, and the operating conditions are fair.

Compared with Dongfeng Components, the Group has ranked among the top 100 domestic components and parts companies in terms of its scale and product category. The disadvantageous situation is even worse.

“Foooo has a significant impact on the decline in vehicle sales, but this year's rate of decline is 8 to 10 times last year.” Zhao Jie, Marketing Manager at Fool Group, declined to specify the specific rate of decline, but he was informed that Dongfeng Corporation had 30%~40% When the amount of decline, they lamented that "Football is much more serious." According to reports, Fuao belongs to the old state-owned enterprises and has long-term support for FAW's entire vehicle, and its supporting share accounts for 95% of the total products.

"This crisis has had a huge impact on us. Sales have dropped by 50% to 60%." Yan Kezhong, director of the marketing department at Shandong Longkou oil plant, was anxious and low-pitched. At this time, he was traveling on a train on a business trip. And two months ago, the reporter saw the delivery of the main engine to the Nanchang Auto Parts Fair and enthusiastically promoted the inventory. He sounded completely different. "The overall situation is very bad, supporting ... after the market ... the factory ... ... staff ..." His husky voice does not want to say more. He is a local well-known enterprise with medium-sized collective ownership and supplies oil pipelines for many OEMs such as Futian, Jiangling and Weichai.

Aftermarket is "fairly matched"

"The after-sales market has a great influence," Xia Bogao told reporters. "Traditional awareness that the market demand will be relatively stable, in fact, the decline in the accessory maintenance market is in line with the vehicle decline."

According to his analysis, as a result of the overall economic downturn, some factories have stopped production and reduced production in recent months. Vehicles of logistics and transportation companies have been shut down in large numbers. Construction vehicles have also declined significantly with the reduction in operating rates. At the same time, they coincide with the aftermarket. The off-season in autumn and winter led to a serious decline in vehicle maintenance and after-sales markets.

"At present, due to a considerable number of vehicles out of service, the demand for parts maintenance market has dropped sharply, and the decline rate is not less than the complete vehicle package." Zhao Jie's response to the aftermarket is the same as Xia Bogao.

It is understood that due to the overcapacity of the automotive industry in China in recent years, coupled with the fact that many exports have been blocked this year, the crisis has caused "supply" supply chains to break, and many parts and components companies have large inventories. Stopping production and reducing production are also digesting inventory.

"Recently, there are three factories in the Dongfeng component supply system that have stopped production. The specific reason is not yet clear." Xia Bogao said, "For us, after-sales service is still necessary to continue. Fortunately, we have the stock of such products. In the short term, there should be no problem with supply. Of course, if we do it in the longer term, we will try to solve it."

According to related high-level automotive research institutions, the number of parts and components companies that are currently in production has reached 30%.

Exports vary by company

As for the changes in exports, they have been affected by different levels of export shares and export regions.

According to Xia Bogao, Dongfeng Company is not affected by the export business. First, because the company is still in the development stage of export trade, its share is relatively small. Second, because the export market is mainly for Southeast Asia, the Middle East, Russia, and other countries that are less affected by the crisis, the local market may increase or decrease, and the overall situation is “fine-tuned”.

A few days ago, reporters learned from Yuchai that its impact on the export market is drastically greater than the domestic market's sales decline of 20% to 30%. Although Yuchai's export market is similar to that of the above-mentioned Dongfeng export region, due to changes in the loan policies of local companies by exporting countries, their import orders for engines have been significantly reduced.

According to several companies in Jiangsu and Zhejiang provinces, in the middle of the year, many parts and components companies closed down because of excessively high dependence on exports and weak profits. At present, due to the reduction of overseas orders, companies with capital chain breakups are shut down and shut down.

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