Parts industry guards against “profound” reintegration possibilities

Recently, a website issued a document saying that most parts and components companies do not feel the pressure of spare parts inventory. The reporter did not agree with this. Due to the weak performance of the vehicle in recent months, the possibility of reorganization of parts and components companies gradually increased.

Prior to this, the China Automotive Technology and Research Center released data that in the first four months of 2010, the inventory of automobile companies and circulation links increased by 999,600, and some companies and merchants already felt the pressure of greater inventory. From the perspective of production and sales data, China's automobile production and sales volume has been declining for the third consecutive month since April 2010, and dealers’ inventory time has been significantly extended. As of June 2010, the stock volume was as high as 1,128,900 and there was a large inventory. According to industry insiders, the Chinese auto market will face a grim second half.

Driven by a series of encouraging policies of the country, domestic vehicles and parts and components companies have performed well since 2009, and most companies have produced beautiful transcripts. However, since 2010, with the adjustment of the national encouragement policy, coupled with the retreat of the domestic car-buying frenzy, the growth of vehicle sales has significantly weakened. The non-market factors that promote the automobile industry by policies are losing her influence. Some auto and parts companies are gradually facing the dual pressures brought by raw materials and the market.

The events of BYD's sellers exiting the marketing network tell us that the prosperity of the automobile and parts industry is far from as optimistic as we thought. Behind the false prosperity, in fact, a tragicomedy is being staged in silence, but more people have chosen to ignore and evade before the incident is disclosed.

We have seen that since 2010, domestic parts and components companies have launched a series of acquisition frenzy. When we cheered for some parts and components companies, in fact, we forgot that many parts and components companies were acquired not because of their own wishes. Obviously, a considerable number of parts and components companies are facing the fate of corporate bankruptcy and waiting for financing. For them, the external publicity is often overstuffed. Therefore, when we accept that the Chinese automobile market has become the global NO.1, we often lose careful attention to our own parts and components industry. When some of the media have chosen to ignore the current status of spare parts, we should be more practical to do something solid for the company.

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