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Growth of Global Auto Parts Market Will be Slow

Source: Junying   Author: Junying   Posted: 2015-12-31 16:28:58   Hits: 439
It is reported that the growth of global auto parts market will slow down in short period; while in the long term, industrial structure will change fundamentally. Suppliers who concentrate on products, customers and regional structure may achieve monstrous benefits. 

Global auto parts market developed vigorously in the past years, always maintaining a higher profit percentage. Since 2011, global profit percentage before interest and tax of auto parts supplier was growing constantly, reaching 7.5%-the highest level in history by 2014.

In 2015, volatility and uncertainty in global auto industry were strengthening constantly. The yield of light autos is predicted to continue rising in the next two years while growth rate may descend substantially. Among that, Europe will maintain a lower level. Japan will fall and yield in NAFTA will grow mildly. China is still the only main momentum. 

Besides, auto manufacturers who are facing with larger and larger margin pressure have already begun to reduce extra costs, enhancing the friction between manufacturers and suppliers. Therefore, it is predicted that on the basis of keeping high profit percentage, the growth rate of suppliers will slow down in short period. Descending risks are larger than opportunities. 

Further influenced by the factors of end customer demands continuing transferring to Asia, raw materials suppliers expanding to downstream and fluctuation on currency and capital market, uncertainty faced by auto parts supplier will grow in the future. Industrial structure will change fundamentally and redistribute benefit of products and fields. For auto parts supplier, the environment will create more opportunities and risks. 

 

Growth of Global Auto Parts Market Will be Slow