Affected by rapid development of automobile industry, pace of localization of molds for domestic automakers and auto parts suppliers, and expansion of domestic mold purchasers by automakers and auto parts suppliers, China’s auto mold market demand is strong, and automotive mouldings industry faces good development opportunities and huge development potential.
Increased demand for parts and components promote expansion of automotive mouldings industry market
Automobile molds are customized products. Enterprises in automobile industry mainly adopt business model of “sales by sales”. Main customers belongs to OEMs and auto parts suppliers. Supply and demand status of downstream auto market will not directly affect auto mold. With continuous growth of automobile production and sales, new models are rapidly launched and original models are constantly changing, and overall demand for automotive mouldings continues to grow.
In addition, with continuous development of China’s automobile industry, demand for auto parts has gradually increased. All internationally renowned auto parts and exterior parts suppliers have increased their investment in Chinese market. Wholly-owned or joint-venture parts factories invested in China have increased rapidly. It also drives growth of domestic automotive mold product demand, bringing new market demand to China’s automotive mouldings industry.
Corresponding demand for automotive interior and exterior moulds and accessory products has expanded
Automotive interior, exterior moulds and ancillary products are non-standard product. When automakers develop new models, they need to redesign internal and external car plastic trim for OEMs or interior parts suppliers, develop corresponding mold products from upstream automotive moulding company. Under normal circumstances, a model requires 1-3 sets of internal, external decorative molds and inspection products to produce various types of interior, exterior parts according to specific configuration. Design of each model is different in the degree of interior, exterior decoration and specific plastic mould technology requirements, cause differences in the number of molds required.
In recent years, with development of global economy, people have higher and higher requirements for performance, appearance and personalization of automobiles. There are more and more types of automobile models, development and modification of new models are becoming shorter and shorter. Market demand for automotive interior, exterior moulds and ancillary products has continued to grow.
High-end trend of automobile consumption brings broad development space for interior and exterior automotive moulding company
With gradual improvement of people’s income level, China’s automobile consumption is entering stage of product upgrading. China’s auto consumption has shown a gradual high-end development trend, and major auto manufacturers have accelerated localization of luxury models.
Audi’s production capacity in China will expand from 400,000 units in 2012 to 700,000 units in 2015. After expansion of Audi South China base, capacity will increase to 965,000 units; BMW’s production capacity in China will increase from 200,000 units per year to 450,000 units in 2017, production capacity in China will gradually increase to 600,000 units in the future; Mercedes-Benz’s production capacity in China will be expanded from 120,000 units in 2012 to 300,000 units in 2017, and plans to expand production to 500,000 units in 2020. In addition, Japanese, American, and other European car brands have also joined localization team of high-end models.
Increasing number of automobile models provides a good development prospect for internal and external decorative automotive moulding company
Since the way in which international automobile brands enter China is mainly based on joint ventures and cooperation, major international automobile brands often have multiple joint venture OEMs in China. In order to adapt to increasingly diversified consumption concept of Chinese consumers, all joint venture OEMs are actively seeking differentiated development directions. Based on retaining advantages or characteristics of international brand power system, design style, safety, they must meets aesthetic characteristics and consumption habits of Chinese consumers.
Therefore, number of models in passenger car market in China is large, and speed of new models is increasing, upgrades of automobiles interiors are becoming more frequent. This trend has provided a good development prospect for domestic interior, exterior automotive moulding company.
Rise of new energy vehicles is a new impetus for rapid development of automotive interior and exterior mould industry
Design method and manufacturing process of interior and exterior of new energy vehicles are basically similar to those of traditional vehicles. Therefore, interior and exterior automotive moulding company can quickly enter new energy automobile industry system. Growth of China’s new energy vehicle models has an important impact on automotive interior and exterior mould industry.
China’s new energy vehicle market has exploded since 2014, with sales increasing from 74,800 in 2014 to 7.7 million in 2017. In 2017, China’s new energy vehicle production was 794,400 units, an increase of 53.58% over same period of previous year. According to data of China Automobile Association, production and sales of new energy vehicles in China reached 735,000 and 721,000 from January to September 2018. Respectively an increase of 73% and 81.1% over same period of previous year. Production and sales of new energy vehicles in China have grown rapidly as seen from data.
According to medium and long-term development plan for Automotive Industry (2017), it is estimated that annual production and sales volume of new energy vehicles in China will reach 2 million by 2020. Launch of new energy vehicles requires new models from outside to inside, which will create a new market space for automotive mold industry, bringing new impetus to rapid development of automotive interior and exterior mold industry.
Development trend of automobile lightweighting promotes innovative development of automotive interior and exterior mould industry
Automobile lightweighting is one of important paths for automotive industry to achieve goals of energy conservation and environmental protection. Automotive lightweighting is to use of modern design methods and effective means to optimize design of automotive products, through use of new materials, under premise of ensuring comprehensive performance indicators of strength, safety, reliability and other vehicles, to minimize weight of automotive products.
Lightweight of interior, exterior of car is an important part of lightweight of vehicle. Lightweight of interior, car plastic trim can not only reduce energy consumption of whole vehicle, but more importantly, it can bring about improvement of safety and comfort. Therefore, all OEMs attach great importance to weight reduction of interior and exterior.
International customers increase procurement in Chinese market, and automotive interior and exterior mold industry faces opportunity to open up international market.
In recent years, comprehensive competitiveness of China’s automotive interior, exterior mould industry has gradually improved. Some automotive moulding company in mold industry have steadily improved in terms of enterprise management, technology, research and development, product quality, and their products have gradually been recognized by international market. At the same time, China’s average labor cost is low. Mold cost-effective advantage is obvious, and objectively drives export of China’s automobile interior, exterior molds. This provides a rare historical opportunity for automotive interior, exterior mould industry to expand its production scale and enter international market.
Overall, China’s automotive mold industry has ushered in a major development opportunity with broad prospects.