The auto parts industry how to deserve a place in the period of economic downturn

In the first half of this year, the domestic auto parts industry market is keeping downturn. On the one hand, the sales of vehicle continues to slow down, downward pressure; on the other hand, in the case that business income growth slow or even decline, the auto enterprises still can ensure sales rose, generally better than the whole car business. As of July 6th, 113 listed companies in the automotive category, there are 40 released their first half forecast, more than 70% is good. So people will doubt whether the auto parts industry can deserve a place in the period of economic downturn or not?
First, The forecast shows that the adjustment of the product structure is the main reason which makes the profit of automotive parts grow. Optimize the layout of the industry, implement a series of the efficiency measures, actively expand the joint ventures and independent vehicle customer business, strengthen cooperation and merger with overseas, these measures make the Chinese enterprises change a lot.

Second, some auto parts enterprises expand business scope, carry out restructuring and add other services.
Third, in recent years, continuing to exploration and reform, expanding market share, and "going out become the choice of auto parts enterprises. A lot of small and medium enterprises ask the listing Corporation for help to accelerate the merger of overseas quality assets. In addition, auto parts enterprises have made full use of Internet to build B2B website. In this context, the performance of the auto parts companies keeps steady growth on the first half year.
Experts said the rise of the performance should be expected. On the one hand, because the supply price of spare parts in the first quarter has been determined, the down of car sales can produce little impact; on the other hand, in the current situation, the profits of car parts will be more and more less, but some new growth and high return business can stabilize the business. Therefore, many parts enterprises are doing epitaxial mergers and acquisitions in order to expand its business scope, which also will play a positive role for the performance.

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Posted by: miaoyu at 02:49 AM | No Comments | Add Comment
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