Market Interview: Auto Parts Price Rising Trend

In the automotive industry's industrial chain, the price of auto parts on the after-sales service market is far less intense than the competition for the entire vehicle price, and the pressure for rising capital has been significantly released. According to industry insiders to the 192job China Auto Elite Network Xiaobian revealed that since the first quarter of this year, the tire price increase is the most significant increase of 5% to 10%. At the same time, the sales price of other parts also increased by 20% to 30%.

The procurement costs of the secondary suppliers such as axles increased by 8.7% and 26.6% year-on-year respectively, the cost of procurement of drive axle companies increased by 10.7% year-on-year, and the purchase cost of suspension bridge suppliers increased by 13.0%. A sub-supplier to the 192job China Auto Elite Network Xiaobian said that because of rising iron ore prices, iron prices rose significantly, the price of iron-based auto parts prices is bound to be.

Faced with rising capital, almost all vehicle manufacturers are reluctant to increase prices. The relevant person in charge of Shanghai Public Information Department revealed to 192job that the Shanghai Volkswagen’s models are not currently able to adjust the market guidance price. Shanghai General Motors also told the 192job China Automotive Elite Network Xiaobian that GM does not have a price increase plan in China and that the cost of spare parts can be digested through the progress of production efficiency.

The after-sales service market is gradually becoming one of the important ways for car dealers to plunder profits to make up for losses. According to a person in the industry who told the 192job China Automotive Elite Network Xiaobian, in general, following the large-scale production of the entire vehicle and the improvement of the localization rate, the price of auto parts and components should be reduced by 10% year-on-year. In fact, it is very difficult for manufacturers to do this. In the domestic automobile after-sales service market, the total price of parts and components that replaces the entire vehicle is double the sales price of the entire vehicle. After relying on price war to quickly occupy the domestic automobile market, multinational car dealers are optimistic about the huge parts replacement and service market. Therefore, under the condition of rapidly increasing production costs, the price of vehicles has fallen, and the price of spare parts is still likely to rise. Compared with vehicle consumers, car owners' demand for after-sales parts and services is relatively rigid.

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