Components for global market short-term growth will slow

The growth of the global auto parts market in the short term will slow; In the long run, will radically change of industrial structure, focus on products, customers, and the structure of the regional suppliers may obtain great benefits. According to the report, the global automotive market booming in the last few years, has always maintained a higher level of profitability. Since 2011, global ebit margin of auto parts suppliers, reached record levels in 2014 7. 5%. According to the report, in 2015 the volatility and uncertainty of the global auto industry has been increasing. Global light-vehicle production is expected to continue to rise for the next two years, but the growth rate of decline substantially. Among them, Europe will remain low, Japan would have fallen, the north American free trade area will be moderate growth, China is still the only major growth engine. In addition, the profit is under growing pressure of makers have begun to cut extra costs, the friction between the intensified makers and suppliers. Therefore, the report predicts that suppliers on the basis of maintain high levels of profitability, slower growth in the short term, the downside risk is greater than the opportunity. Roland berger argues that by the end customer demand continues to shift to Asia, raw material suppliers to expand downstream, money and capital market volatility further influence of factors such as, the uncertainty of future auto parts suppliers are facing big, will fundamentally change the industrial structure, and will be redistributed in the field of products and benefits. For auto parts suppliers, this kind of environment will create more opportunities and risks. As for the case, China still has the lead supplier profit margins, but the competition is intense, a gradual decline in its profit level. In the next few years, China is still a car the biggest market for terminal customer demand, customers in China a marked increase in the demand for entry-level cars, the local makers of quality and technology, and the cost of the western makers challenge. In the long run, 2 ~ 3 competitive level of China supplier will appear in the top 30 global supply. As the number one cause of automobile production base in China, local suppliers and global counterparts in narrowing the gap in related field. Report suggests, supplier shall be under the condition of not limited by its flexibility at the next wave of improve the efficiency of the opportunity, more uncertainty and volatility in order to quickly adapt to market development. At the same time, the supplier should be prepared to benefit from the industrial transfer and ease the long-term risks associated. In the short term, supplier should improve the efficiency of intelligence; In the production, research and development and procurement to improve or maintain the flexibility of the whole value chain; Stimulate the initiative of key resources, to ensure its possible working group can be added at any time; Strict management investment decisions and one-time fee; Careful monitoring of market development and market may decline. From the long-term action, suppliers should maintain or improve the unique selling proposition, highlight the specific technical or technological differences; Focus on the growth rate is higher than average, have profit potential of product areas, actively use m&a opportunities; Both from the perspective of revenue and from the perspective of creating value to balance the regional share share with customers; To establish the best process and structure, in a more complex layout of globalization remain flexible and efficient; Application scenario simulation technology, regularly review and adjust the whole before making strategy. The previous: China construction machinery industry will enter the next future warmer area next up: the development of internationalization has become a 'much starker choices-and graver consequences-in' auto parts mainly