Figures show that China’s auto parts exports have not recovered

According to the data from the General Administration of Customs recently, the export of automobiles and parts and components has dropped by more than 20% in the first three quarters of this year. The prospects in the fourth quarter are also not optimistic. The export data of customs offices across the country shows that they are not satisfactory.

From January to September of this year, Chongqing's auto parts exports amounted to 66.74 million US dollars, a year-on-year decrease of 33.1%; Zhejiang's auto parts exports fell by more than 20% year-on-year. Zhejiang Jinhua Customs statistics, although the monthly export volume of Jinhua auto parts in September was 18.62 million US dollars, hit a new high this month, but still unable to recover the passive situation of cumulative exports fell by 31.5% year-on-year in the first three quarters of this year. At the same time, the export volume of auto parts of Guangzhou Customs also fell by 20% in the first three quarters.

â–  Europe, the United States, Japan's auto market decline

Since the second half of last year, under the impact of the financial crisis, the global auto market suffered a major setback. China's auto parts exports are facing three major regions - Europe, the United States, Japan are facing the automotive market shrinking. It was once the largest US car market in the world, and the sales of major auto makers fell sharply without exception. On August 24th, the US cash-for-money preferential policies ended, and the US auto market fell to a new low. In September of this year, sales of General Motors and Chrysler fell by more than 40%; Ford ended the second consecutive month of year-on-year growth, falling by 5%. In September, US car sales were 746,206 units, which was a year-on-year decline of 23%. Sales volume in the first nine months of the year fell by 27% year-on-year. In the first three quarters of this year, European new car sales fell by 6.6%. Despite the 477,819 new Japanese car sales (including minicars) in September, a slight increase of 0.2% year-on-year and the first increase since July 2008, there was no significant increase in sales. Professionals predict that in 2009 the European auto market will fall by 20%. The Japan Manufacturers Association predicts that the number of new car registrations for the whole year will drop to 5 million, the lowest level since 1978. All these will lead to weak demand in the auto parts market.

The declining market performance of Europe, the United States and Japan has seriously affected China's auto parts export enterprises. At the same time, countries in the after-sales market tend to be conservative, have reduced the number of orders and are busy digesting inventory. According to sources from relevant parties in the Ministry of Commerce, China’s auto parts exports to the North American market fell by 28.4% from January to September, and the European market dropped by 37.3%, with the Russian market dropping by 73.4%.

â– Intensified protectionism

In addition to the impact of the financial crisis on the export of auto parts, protectionism is another curse that blocks the “westward travel”. Especially since the second half of last year, trade protectionism has become more serious. According to statistics from the World Trade Organization Secretariat, in 2008, there were 73 new anti-dumping investigations against China and 10 anti-subsidy investigations, accounting for 35% and 71% of the total global anti-dumping and countervailing investigations. In the first half of this year alone, China’s trade disputes amounted to approximately US$8.3 billion, far exceeding the US$6.2 billion in 2008. Tires, fasteners, wheels, and bearings are the subject of frequent trade protectionist complaints.

On June 29th, the European Wheel Manufacturers Association (EU?é„„WA) filed a complaint with the EU Trade Commission on behalf of 6 European aluminum wheel manufacturers to investigate the dumping behavior of China's export aluminum wheel enterprises. On August 14th, the EU's anti-dumping investigation against aluminum alloy wheels in China was formally filed with the EU Trade Commission.

Li Xiaoqing, secretary general of the Wheels Committee of the China Association of Automobile Manufacturers, said: “The multinational car companies have adopted the policy of spare parts global procurement, and many auto parts companies in the world have to fight against the market with inexpensive Chinese parts and components and have to carry out the anti-dumping slogan. Trade protection, in order to obtain living space."

â–  Low value-added products are not competitive

Statistics from the Huangpu Customs show that from January to September this year, the figure of the processing trade of Guangdong Province has exported 23.09 million tires, a year-on-year decrease of 8.3%, accounting for 80% of the total tire exports of Guangdong in the same period. During the same period, 5.66 million tires of self-owned brands were exported, a year-on-year decrease of 53.6%, accounting for 19.6% of total exports.

Fu Peizhao, deputy secretary-general of the Automotive Subcommittee of the China Electromechanical Products Import and Export Chamber of Commerce, told reporters that domestic export enterprises are mostly labor-intensive and their product quality is low, with low added value. The trading methods of these enterprises are mainly based on processing trade. Their technological advantages are not obvious, they only earn a meager processing fee, and their competitiveness is not strong. According to sources from relevant departments of the Ministry of Commerce, about 50% of China's entire auto parts export trade is processing trade, with low added value. In addition, the majority of small and medium-sized export enterprises do not have the ability to further enhance their research and development. There are still some companies whose core technologies are still controlled by foreign parties. The Chinese side cannot benefit from the technological field.

Persons from relevant departments of the Ministry of Commerce stated that the State is considering introducing relevant policies for the export of auto parts, including continuing to maintain the stability of auto export tax rebate policy, adhering to the principle of “recovering how much, how much to withdraw” and maintaining the 17% export tax rebate rate unchanged. . Encourage financial institutions to support export companies in various ways such as policy loans and mortgage loans for export orders. Other measures include supporting independent innovation by enterprises, accelerating the construction of national auto and auto parts export bases, increasing support for the construction of auto export public service platforms, promoting international cooperation and exchanges among enterprises, and effectively responding to international trade barriers, etc., and further promoting China’s automobile industry. Component outlets.

Experts concerned believe that with the introduction of national policies, China's auto parts exports will gradually emerge from the downturn and embark on a healthy development.

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