Author: Riverside Machinery (Group) Co., Ltd. Huang Weimin Date: 2007-2-2
In 2006, it was a very extraordinary year for Pistons. It was also a year in which pressure and power coexisted, challenges and opportunities coexisted. Each piston company has generally suffered a severe test of raw material prices and capital shortages.
The production and sales of pistons in 2006
According to statistics, in 2006, automobile companies produced 6.27 million sets of automobile engines, a year-on-year increase of 33%. Among them, 1.55 million diesel engines were produced, a year-on-year increase of 21.5%; gasoline engine production was 4.72 million, an increase of 37% year-on-year. Correspondingly, in 2006 China's total output and sales of the piston market were about 53.20 million.
In the mainframe supporting market, the production and sales of pistons for vehicle engines in 2006 were around 26.6 million. Among them, diesel engine piston production was approximately 7.7 million, and sales were approximately 7.65 million; gasoline engine piston production was approximately 18.9 million, and sales were approximately 18.7 million.
In the aftermarket service market, the production and sales volume of pistons used in the maintenance market in 2006 was around 26.6 million.
Pistons face severe market conditions in 2006
Due to the increasingly fierce competition in the Pistons market and the unpredictability of the market, Pistons had unprecedented challenges and pressures in 2006.
The first is the pressure from cost, and the major raw materials are greatly increased in price. Since the fourth quarter of 2005, with the global economy performing better than expected, prices of major non-ferrous metals and precious metals have risen sharply once again. The prices of copper, zinc and lead all reached record highs, and aluminum and gold prices also hit a 10-year high. In particular, since 2006, the price of aluminum ingots for the main materials of China's piston companies has soared to RMB 26,710/t in February 2005 from RMB 26,100/t in May 2006, an increase of 43.6%. Due to the impact of soaring prices of major raw materials, even companies with large scale in the industry feel a bit uncomfortable and uncomfortable. Some small and medium-sized piston companies have stopped production or switched production because they could not hold up raw material prices and financing difficulties. . This is undoubtedly a "big shot" for Pistons and the entire industry.
Followed by the intervention of multinational companies, market competition is even more fierce. In July 2006, Bruno, Executive Vice President of Federal-Mogul Corporation, a world-renowned auto parts manufacturing company, visited the company in the field and signed a memorandum on cooperation. His initial intention was to establish a production base for auto parts in China. With the strong involvement of the Federal-Mogul company in the United States and the joint ventures or sole proprietorships established by the famous foreign multinationals such as Mahler in China, the competitive landscape of the domestic piston companies will change quietly, and the competition among enterprises will intensify. In some cases, there will be no less than 10 Pistons companies bidding for the right to compete for a certain OEM's product.
In 2007, the competition in the piston market of automotive engines became more intense
First, in recent years, famous global multinational companies such as Mahler have established a number of joint ventures and sole proprietorships in China, and set up an R&D center in Shanghai to use technology and brand advantages to compete with domestic piston companies on the same platform.
The second is that production will be further concentrated. The National Development and Reform Commission’s “Notice on the Structural Adjustment Opinions of the Automotive Industry†clearly stated: “Break up the blockade between regions that are not conducive to auto parts and components or between enterprise groups, and gradually establish open, competitive, and different technical levels of zero. Component Supporting System: The state supports the development of auto parts industry clusters in regions with favorable conditions, encourages auto manufacturers and parts and components companies to jointly develop complete vehicle products, and guides the components and rank-and-files companies to scale up and level up, and conducts cross-regional mergers, alliances, and restructurings. A large-scale parts enterprise group is formed for both domestic and foreign markets. Local governments and relevant departments must formulate effective and effective measures to support domestic backbone component enterprises to improve product research and development capabilities."
It is certain that with the gradual advancement of the adjustment of the industrial structure, the pace of mergers and reorganizations in the piston industry will further accelerate, and more medium and small-sized piston companies will face suspension of production or conversion due to material price increases and financing difficulties, and the piston industry The degree of industrial concentration will be further concentrated.
Third, the peak of product upgrading is approaching. As the contradiction between China's economic development and environmental protection has become more prominent, tightened automobile emission standards have once again been put on the agenda. In order to meet the needs of national security, environmental protection, and energy conservation, especially with the gradual implementation of the National III and National IV standards in the country, the industry and the market are increasingly demanding the safety, environmental protection, and energy saving of piston products. With the gradual implementation of new emission standards and the related improvement of the supervision system, the peak of an “upgrading†of automobile engines will emerge from 2007 to 2008.
Demand for vehicle pistons will continue to grow in 2007
According to the average annual increase of 30% in China’s automobile engines, the total production of automobile engines by auto companies in 2007 will reach 8.15 million units, and sales of auto engines will be about 8.1 million units. According to the type of fuel, the diesel engine will produce about 2 million units; the gasoline engine will produce about 6.15 million units. Therefore, in 2007, the total production and sales volume of the engine piston host matching market was approximately 35 million. After the decomposition, the production and sales volume of diesel pistons was approximately 10.4 million, and the production and sales volume of gasoline engine pistons was approximately 24.6 million.
In the aftermarket service market, according to the ratio of 1:1.5 of main engines and maintenance, the production and sales of the piston repair market for automotive engines in 2007 will be around 52.5 million.
Therefore, in 2007, the total market volume of vehicle pistons will reach 87.5 million.
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