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Analysis of Influencing Factors in Automobile Cable Industry
Date: 2022.11.11 Viewed:

Favorable influencing factors

1) Industrial policy support

As one of the auto parts, the car cable is an important part connecting the electronic appliances of the car, and it is the key component that affects the electrical performance of the whole vehicle. National ministries and commissions have successively formulated the "Mid- and Long-Term Development Plan for the Automobile Industry", "The 13th Five-Year Plan for the Development of National Strategic Emerging Industries", "Made in China 2025", "Guiding Opinions on Accelerating the Promotion of Mergers and Restructuring of Enterprises in Key Industries", A series of industrial policies such as "Energy Saving and New Energy Automobile Industry Development Plan (2012-2020)" and "Automobile Industry Development Policy" promote the development of the automobile industry and the auto parts industry.

2) Concentration of downstream vehicle industry continues to increase

For enterprises in the automotive cable industry, the higher the concentration of the vehicle industry, the more stable business orders can be obtained by cooperating with vehicle manufacturers with a high market share. According to statistics from the China Association of Automobile Manufacturers, China's auto industry market has a high market concentration and a growing trend. From 2016 to 2018, the total market share of the top ten automobile manufacturers increased from 88.34% to 89.13%, of which SAIC Group’s market share in 2018 reached 24.97%, leading the industry and showing an increasing trend year by year. In addition, GAC Group and Geely Holding have grown significantly in recent years, and their market share has increased significantly. Therefore, if you enter the supply chain system of OEMs under SAIC, GAC, and Geely Holding, you can enjoy stable growth in operating performance.

3) Steady growth in market demand

In recent years, with the rapid development of the overall national economy, the level of national income has increased rapidly, and the consumption of automobiles has also increased significantly. my country's automobile production and sales have ranked first in the world for many years, but the number of automobiles per thousand people in my country is far lower than that of developed countries in the same period. There is still a lot of room for improvement in domestic automobile consumption demand. The sustained and rapid development of the national economy will further drive the steady growth of the automobile industry, thereby increasing the market demand of the automobile cable industry; the intelligentization of automobiles is impacting the entire automobile industry. , One-button start, cruise control, reversing image and other technologies have been applied and popularized in many cars. Intelligent networking technologies such as automatic driving and human-computer interaction systems are also gradually maturing. The proportion of automotive electronics in the vehicle is It will be higher and higher, and the demand for automotive cables as connecting electronic systems will also increase rapidly; with the increase in the acceptance of new energy vehicles, the demand for high-voltage cables for new energy vehicles will also increase significantly, and the automotive cable industry welcomes good development opportunities.

4) The transfer of industries to China brings new opportunities for development

Since the auto parts industry is a labor-intensive industry, for the purpose of reducing costs and improving localized service levels, the world's major auto parts companies have gradually shifted their production bases to countries with greater cost advantages. my country has been the country with the largest automobile production and sales in the world for many consecutive years. With the booming situation of my country's automobile production and sales, the international auto parts industry chain, including the automobile cable industry, has been transferred to China to realize localized R&D, design, production and supply. . Wire harness companies represented by Yazaki and Aptiv continue to increase their investment in China to realize the localization of the supply chain. The competitiveness of domestic automotive cable manufacturers is gradually increasing, gaining more and more market shares, and participating more extensively in the global automotive industry chain of division of labor.

In the next few years, the country will gradually open up the auto industry and remove restrictions on the proportion of foreign capital. Well-known automakers such as Tesla, BMW, Volkswagen, and GM will continue to increase their investment in China, especially in the field of new energy vehicles. With the removal of restrictions on the proportion of foreign capital in the auto industry, it will have a significant impact on domestic independent auto brands, forcing domestic auto companies to integrate resources and enhance innovation capabilities, thereby fully stimulating the vitality of the auto market and bringing new opportunities for development.


Unfavorable factors

1) The performance of basic materials is backward

In order to meet the requirements of automobiles, the use of insulating materials is the key. The production formulas of some key raw materials such as stabilizers in PVC, XLPE and TPE currently used are mastered by foreign-funded enterprises, and the properties of materials produced by domestic-funded enterprises cannot meet the requirements for use. The backward performance of basic materials not only restricts the research and development of new automobile cables, but also increases the operating costs of enterprises.

2) Closed supply chain system

The supply chain system of international brand OEMs is relatively stable, and they usually give priority to purchasing from auto parts companies with stable cooperation. In particular, Japanese OEMs prefer to purchase parts from Japanese-funded or Sino-Japanese joint ventures. With the enhancement of domestic automotive cable manufacturers' R&D technical capabilities, the improvement of production technology, and the high cost performance brought by good cost control capabilities, domestic automotive cable manufacturers have gradually entered the supply chain system of foreign or joint venture brand vehicle manufacturers. There is still a long way to go to break through the existing closed system.


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