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Keep Going Up! Automobile Parts And Components Enterprises Face Cost Problem
Dec 29, 2017

2017, a sound, in the automotive parts industry, due to a variety of reasons for the increase in operating costs, so that enterprises, especially small and medium-sized auto parts enterprises face unprecedented pressure, this pressure in 2017 years faster, but also more fierce. The external environment is depressed, the enterprise profits more difficult, the research and Development encounters the fund bottleneck, the adjustment transformation direction is not clear and so on lets the component enterprise fall into survival predicament. The survival of the occasion, how to kill a way out of this "life and death", become part of the enterprise has to think of the proposition.


The cost of the rise is unbearable

"The continued rise in raw material prices is the main cause of the increase in operating costs." "The sigh of the parts business is corroborated by the data:

Natural rubber prices from the end of 2015 7000~8000 Yuan/ton up to the current close to 20000 yuan Mark, the domestic spot base oil prices from April 2016 to December cumulative rise of 25%, the first quarter of this year's base oil prices are expected to rise by about 30% over the same period last year; Some non-ferrous metals such as raw materials prices on average rose by about 20%, low carbon steel and other metal raw materials, such as the purchase price of 70%~80%, chips and other electronic imports of components prices rose about 10%; isocyanate, Polyether (commonly known as white, black material) and other chemical raw materials prices have doubled ...


This is just one. The increase of logistics transportation cost, exchange rate and packing cost are the factors that increase the operating cost of the component enterprises.


It is reported that the implementation of the end of September 2016, "car, trailer and train external profile size, axial load and quality limit value (gb1589-2016)", revised the logistics and transport vehicles to limit the weight of the standard, so that a single vehicle cargo tonnage reduction, resulting in higher tariffs.


For enterprises that have import and export business or rely on imported materials, the continuous movement of exchange rates has led to their rising operating costs.