China’s auto parts industry has always made and grown in recent years. However, until now can be up against some difficult times due to increases in wages, local currency and raw material prices.
The past
Last year, in 2007, growth in China market experienced record growth in terms of production and consumption of automobiles. As people’s incomes rose so did consumption. The year 2007 saw a production of 8.88 million units and consumption of 8.79 million units.
As China’s exports registered U.S. $ 2.09 billion in trade. A year earlier, in 2006, revenues from sales of Chinese auto manufacturers reached U.S. part $ 58.30 million. What is even more intriguing is the fact that the Chinese auto parts production is expected to reach U.S. $ 115.6 billion in 2010.
Much of this growth is attributed to about 1,000 auto parts industrial-oriented around the country, and that about 10% of these are located in major regional development zones and clusters.
The current scenario
This year is being seen as a year of correction of years. According to the National Statistics Bureau, China, the growth rate experienced during the first two months of 2007 was 90%. However, during the same period this year, which has just 37% a difference of 53%. Undoubtedly, the rate of growth has suffered.
The costs of raw materials like oil and aluminum have increased, which in turn appears to have affected production costs. Manufacturers of automotive wheels and tires are the most affected as a result. Along similar lines, producers of molded plastic parts and automotive accessories for cars have also taken a beating.
Tags: auto manufacturers, auto parts industry, automotive accessories, automotive wheels, china market, difficult times, national statistics, raw material prices, statistics bureau, wheels and tires