Light weight is inevitable trend of auto developing and aluminum alloy deep processing technology has already been mature, expected to promote light weight of auto. Made in China 2025 Strategy points out that the light weight of auto is the key breakthrough direction. Based on regulations of MITT (Ministry of Industry and Information), carbon dioxide emission standard of auto will be reduced from 155g/km in 2015 to 112g/km in 2020; fuel consumption will be reduced from 6.9L/100km in 2015 to 5.0L/100km in 2020. Only depending on design optimization cannot meet the requirements of low consumption and emission reduction. Light weight and new energy become the main method. At present, main light materials are aluminum alloy, magnesium alloy and carbon fiber.
Car body is the main light part. The density of aluminum is 2.70g/cm3, 1/3 of density of iron. The aluminum alloy can be applied in car as 540kg, reducing the weight of auto by 40%. The weight of traditional car body accounts for 30-40% of the car. Aluminum alloy has already used for the body of vehicle. In terms of new energy auto, using aluminum car body can improve cruising ability of auto, reducing the cost of battery. It also reduces the cost of the whole vehicle, having better economic benefits.
Aluminum alloy deep processing industry ushers in new opportunities, promoting auto light weight further. On the one hand, in China, due to overcapitalization and inventory increasing, the price of aluminum oxide is lowest in the history and cannot rises significantly in short period, reducing the cost of production of aluminum alloy deep processing enterprises. On the other hand, foreign auto manufacturers are gradually bringing Chinese enterprises into global aluminum alloy parts purchasing system and increasing orders. Benefitting from the low price of upstream aluminum oxide, aluminum deep processing industry will have a highly developing period, pushing light weight of auto forward.
For several years' effort, Chinese manufacturers have the ability to expand application of aluminum alloy on auto. For aluminum alloy car body manufacturing, the key technologies including high-end aluminum alloy sheet, aluminum alloy extrusion, aluminum alloy precise die casting and welding have already been mature. In terms of powertrain, Chinese manufacturers have already transmitted aluminum die castings of engine, gearbox and underpan to Ford Motor, General Motor, Mercedes Benz, BMW and other international auto manufacturers.
Auto applied aluminum alloy has huge market potential. By 2020, annual output of auto in China will be expected to reach 36 million. The annual output of new energy auto will reach 2 million. If the average usage of aluminum on traditional auto reaches 160kg and usage on new energy reaches 250kg, the demands for aluminum on auto market will be about 6.2 million tons. From 2014 to 2020, compound annual growth rate (CAGR) of demands for auto aluminum alloy will be about 20-25%. Based on 40,000 per ton of auto aluminum alloy, by 2020, the market of auto aluminum alloy will be 250 billion RMB.
Light weight is inevitable trend of auto developing. Civilian of new energy auto also pushes light weight to inflection point of industry transformation. The mature aluminum alloy deep processing technology is expected to realize large scale first. The application of aluminum alloy is expected to be expanded on powertrain, underpan and body.