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Truck market downturn, spare parts business survival plight should be taken seriously

Dec 26,2023

According to informed sources in the industry, most of the current key spare parts enterprises of new production orders, compared with the previous peak, at least to 60%. The direct decline in production capacity, for spare parts enterprises is the loss of real money, business difficulties.

"Probably since last year, walking in the auto parts industrial park, everywhere you can see the front of the enterprise hanging banners or posted large-print advertisements, written above the news of plant rentals, plants for sale." A practitioner nearly 20 years of spare parts business related personnel told us that since the practice, the first time to see such a bleak market scene.

According to him, this situation, not just in some low-end truck spare parts enterprises, from the overall phenomenon of observation, even if some of the core technology, there are a number of industry honors of some of the specialization of the new special enterprises are also facing operational difficulties, we are facing the problem of survival difficulties, struggling to walk.

Speaking of spare parts companies why it is so difficult, we think there are mainly the following reasons.

First, since the second half of 2021, the sales of commercial vehicles declined sharply, the reduction of vehicle sales will directly affect the demand for spare parts, as "a grasshopper on the rope", naturally not good.

Secondly, as we all know, in the first few years, the truck market has seen a blowout in sales, with annual sales continuously exceeding the one million mark, creating a heyday since the development of China's automobile industry.

When the market was good, in order to meet market demand, many spare parts companies on the scale of the factory, the scale of production capacity and other aspects of the expansion, which led directly to the cost of labor, site have increased a lot.

In addition to the direct input of labor and space, in order to pursue efficient production efficiency, many spare parts companies will be automated production line upgrade, advanced production equipment and technology at that time can naturally improve the level of technology to save labor costs, but for the automated production line for the production of a larger batch, the lower the cost of converted to a single product.

When the order batch is reduced, the scale of production does not go, the cost of automated production is even higher than the embarrassing situation of human production.

 

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