The automotive cable market capacity depends on the output of the downstream automotive market. In 2018, China's automobile production was 27.809 million units, of which about 1.27 million were new energy vehicles. Due to the difference in the ex-factory price of automobile cables according to their use, voltage load, material, temperature resistance, etc., and the lack of corresponding subdivision public data, according to different types of automobiles, they are divided into traditional automobile low-voltage cables and new automobile cables. There are two categories of high-voltage cables for energy vehicles.
According to estimates from the collected public information, the current average supply price of a traditional car cable is about 500 yuan, and the average supply price of a new energy vehicle cable is about 1,000 yuan. According to the automobile output and the average price of single-volume automobile cables, the market size of China's traditional automobile cables in 2018 is about 13.27 billion yuan, and the market size of new energy automobile cables is about 1.270 billion yuan. With the steady growth of the market size of China's auto industry and the gradual increase in the proportion of new energy vehicles, automotive cables have a large market size and the industry has a good development prospect.
Barriers to entry in the automotive cable industry:
1. Barriers to qualification certification
Car cables belong to the safety parts of the car, and directly determine the safety performance of the car. Therefore, the car OEMs are very strict in the selection of car cable suppliers. In order to enter the supply chain of automobile wiring harness manufacturers, automotive cable companies must obtain the qualification certification of automobile manufacturers in principle.
First, the enterprise needs to pass the third-party quality system certification; secondly, the enterprise product needs to pass the rigorous testing of the third-party testing agency designated by the vehicle manufacturer to obtain the certification of the cable product by the vehicle manufacturer; finally, through the wiring harness manufacturer and the vehicle manufacturer After the manufacturer's adaptability test, the supplier's qualification is determined and incorporated into its supply chain system, and the two parties enter a stable cooperation stage. Once certified by the automobile manufacturer, the automobile wiring harness company needs to choose a supplier among the certified cable companies. Therefore, the choice of the wiring harness company to the cable company has the characteristics of stability and long-term.
In order to ensure product quality and maintain the stability of supply, wire harness companies usually do not easily change the supply channels of cables. Such strict supplier qualification certification and stable customer relationships based on long-term cooperation have formed a strong qualification certification barrier for companies planning to enter the automotive cable industry.
2. Technical barriers
The production of automobile cables is mainly composed of main processes such as drawing, stranding and extrusion. The quality and performance of automotive cables directly affect the safety and reliability of the entire vehicle. In order to adapt to the working environment of various complex conditions such as vibration, friction, ozone, oil pollution, high heat, cold and electromagnetic radiation, automotive cable products require automotive cable companies to have a high level of technical process, detection level and reasonable insulation material formula Wait.
Therefore, the automotive cable industry is an industry with high comprehensive requirements for various technical capabilities such as material research and development capabilities, equipment operation levels, process improvement and innovation, and quality testing and evaluation. It requires a long period of practice and accumulation, thus forming a strong technical barriers.
3. Financial barriers
The production of automobile cables requires the purchase of a large number of high-end processing and production equipment, the introduction of professional and technical personnel, and the establishment of specialized R&D and testing institutions, all of which require large and continuous financial support. At the same time, cable products have the characteristics of "heavy materials and light work". The value of the main raw material copper is relatively high and the price fluctuation is relatively obvious, which requires more working capital and requires enterprises to have more working capital to ensure the normal operation of production.
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