Shiyan Auto Parts Market Analysis (2003.09)

China's auto industry currently has an annual demand for spare parts of about 80 billion yuan. At least three hundred and forty-four billion yuan is required to complete the three-level circulation of auto parts and components from the primary market to the regional operations to retailers. The transaction amount. Economists believe that China's auto parts market presents a huge space for development. For a long time, China's automobile industry policy has attached more importance to vehicle manufacturers and neglected the development of its auto parts market. In fact, with the Chinese auto industry entering the "highway" from the "countryside trail", the auto parts market has shown unprecedented tremendous development space. At the symposium organized by the International Auto Parts Market and the New Sunan Model held in Changshu International Auto Parts City, Jiangsu, several economists and experts in the automotive industry unanimously expressed this view.

I believe that all those who see the above report Shiyan Auto Parts dealers have a strange feeling, on the one hand is the huge potential of the entire auto parts market, on the one hand facing the severe situation of sales decline. Since August, the dealers in Shiyan Auto Parts City have more or less declined in sales. Some small distributors with weaker strength have felt that the crisis of survival is so close, and the margins of gross profit have been unbearable. The huge crisis of survival and the accompanying psychological pressure made Shiyan dealers feel that the winter is already ahead of schedule, and this winter must be particularly cold.

First, market analysis

The relatively small number of overseas distributors to purchase in Shiyan and the decrease in the number of service stations at Shiyan are the main reasons for the recent downturn in the Shiyan market. August is the traditional off-season, coupled with continued high-temperature weather, the dealers in Shiyan have significantly reduced the number of foreign distributors, and Auto Parts City distributors can only sell indirectly through telephone and other sales. The sales volume has declined to varying degrees. The reduction in the procurement of service stations has the background of Dongfeng’s policy of “determining and dedicating the distribution”. Since the implementation of “determined splitting and delivery”, the weak position of the service station accessories operation has been reversed to a certain extent. The advantage of the sales office on the price of accessories has changed the procurement strategy of the service station accessories from the previous distributors. The main procurement gradually evolved into the main procurement of sales offices, supplemented by dealer purchases. With the continuous increase in the spare parts capacity of the sales office, this trend will continue. The share of service stations in the auto parts market will increase to a certain extent, and the market for foreign distributors will have a certain impact. In turn, Shiyin Auto Parts will be distributed. Business has a potential impact. For distributors in Auto City, this must be psychologically and strategically prepared.

Second, manufacturers

The downturn in the Dongfeng accessories market will inevitably affect upstream manufacturers. After the joint ventures of Dongfeng’s specialized plants, due to the expectation of changes in the future parts policies and increasing market pressure, in order to cope with the current market status, more promotional efforts have been made, such as the Dongfeng Technology Braking System Co., Ltd. The company's promotional activities, the dual-cylinder brake valve from 150 to 100 yuan; some professional plants through the promise of year-end rebate, hoping to mobilize the enthusiasm of the dealers in a short period of time to stimulate the market and increase sales. Only a few short months from the end of the year, in order to ensure that this year's budget targets can be achieved, I believe that in the coming period there will be new marketing tools and new promotions. We have reason to believe that the product prices of Dongfeng’s specialized plants will continue to fluctuate over a period of time.

Although the auto parts industry has entered the era of meager profit, the pattern of oversupply in the Chinese manufacturing industry and the ever-increasing auto parts market have attracted new manufacturers, such as Shanghai Taibuk Co., Ltd., Shanghai Tieliu Clutch Co., Ltd., Dalian. Tianhong company and so on, they seized the soft underbelly of some old brand manufacturers, have worked hard on product prices, after-sales service, packaging, with a new image, a certain profit space to attract the attention of some dealers, caused in the market A certain amount of shock. In the field of battle between new and old brands, some old brands have been hit hard. For example, in the supercharger market, the market share of the two old brands in Shanghai and Wuxi has declined to varying degrees. Since the beginning of this year, the call for coordinating manufacturers to adjust their policies has become increasingly demanding and has exerted greater pressure on cooperating manufacturers. In a relatively short period of time (up to and including no later than a year ago), relevant policies of cooperating manufacturers The price must also change.

Third, the market situation

The extremely transparent market prices and the vicious competition in prices have resulted in dealer sales gross margins having fallen to the lowest point, so the price fluctuations in the recent market are not very large. What is worrying is that under the pressure of competition, there have been more fake and shoddy products on the market, and fraudulent behavior has risen. Especially in the case of imported products, counterfeit products abound. Imitation of imported piston rings, connecting rod screws, etc., its appearance is very similar to the real imported products, foreign users should pay attention to identification when purchasing. Recent market prices have been adjusted for the following products: The diesel engine's basic machine prices have been reduced, 180 horsepower 24770 yuan, 210 horsepower 25000 yuan, 300 horsepower 45000 yuan, 240 horsepower 45000 yuan, intercooler 180 horsepower fell RMB 540 and RMB 6BAA780, the 6BT piston of Wuxi Haoli was reduced to 430 yuan/set, 6BTAA780 yuan/group, and the 153 booster of Shaanxi Ebara was adjusted from 178 yuan to 158 yuan, and that from 6CT to 168 yuan from 198 yuan, Xiangshan 6CT The pump was adjusted from 280 yuan to 230 yuan.

In the high horsepower market, the new models of the Dongfeng Company's Tianzi series (Tianhu, Tianma, Tianshi, and Tianlong) will hit the market in the near future. The high-top two-bedroom exclusive parts represented by the EQ1230 model are relatively out of stock, which is due to the fact that the supporting manufacturers have put less in the social maintenance market or some manufacturers have not entered the market at all. Due to the tight market of these special parts, some negative parts have emerged at present, and it is hoped that the majority of foreign businessmen should pay attention to identification. The products with relatively large market price adjustments in the near future have the following: Headlights manufactured by Jiangsu Changyang Changcheng Co., Ltd. dropped from 420 yuan to 350 yuan, cylinder heads of 6CT8.3 engines dropped from 6,500 yuan to 6,200 yuan, and crankshafts were adjusted from 3,500 yuan to 3180 yuan. The original price of the EQ4150 gearbox (17G0A9-12) produced by Shaanxi Dental is 18,000 yuan, and it is only 17500 yuan from the sales office. The service station can also enjoy 5 points rebate. â– 

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