Car supplies refer to car-related products used in car modification, car beauty, and car decoration. Mainly applicable to related application scenarios in the automotive aftermarket. With the steady development of China's economy and the gradual improvement of residents' consumption levels, the overall expansion of automobile production and sales, and the gradual expansion of the market for waxing, filming, and electronic products for new cars. At the same time, with the continuous increase in the number of motor vehicles in China, the demand for auto products in the aftermarket such as car maintenance and auto modification has gradually expanded, and the requirements for auto products have become higher and higher. China's auto supplies industry has made good development achievements in recent years.
Industry profile: a large number of products and companies
The entire automobile industry chain in my country is composed of three links: automobile manufacturing, automobile circulation, and automobile aftermarket. Auto parts are located in the first link of the automobile aftermarket.
The upstream and downstream industries of auto supplies mainly refer to related supply and demand industries. The upstream is mainly the supply industry of raw materials for automotive supplies, while the downstream is the industry that has demand for automotive supplies, mainly the automotive aftermarket.
The upstream impact on the automotive supplies industry is mainly in terms of cost. The price changes of raw materials (including steel, aluminum, plastics, petrochemicals, rubber, etc.) are directly related to the manufacturing cost of automotive supplies. The downstream impact on automotive supplies is mainly in market demand and market competition. With the development of science and technology, the upgrading of auto products is accelerating. Under the consumption upgrade, the brand quality requirements of auto supplies are increasing. Manufacturers must provide products that can effectively meet market demand, otherwise they will face the dilemma of supply and demand disconnection, resulting in structure Imbalances and product backlogs.
The upstream of the automotive supplies industry chain mainly includes markets that provide raw materials, including steel, non-ferrous metals, electronic components, plastics, rubber, wood, glass, ceramics, and leather. Among them, steel, non-ferrous metals, electronic components, plastics, rubber, and petrochemical products have large demand for raw materials.
The downstream includes automobile aftermarket entities such as automobile 4S shops, automobile repair shops, automobile modification plants, automobile maintenance shops, and professional automobile supply stores.
Due to the large variety of products in the automotive supplies industry, no large-scale monopolistic enterprises have formed in the entire industry. From the perspective of segmented products, most products such as car ornaments, perfumes, color bars, steering wheel covers, etc. have low entry barriers. Small companies can also produce related products, so they are in a state of fierce competition. Products closely related to the petrochemical industry have formed a monopoly by several major companies, such as Sinopec, PetroChina, Shell and ExxonMobil.
Policy promotion: Policies are frequently implemented to boost industry development
Policies are frequently issued, and the requirements of the automotive industry are gradually increasing
Since there are many types of automotive supplies, and these products involve different industries and fields, such as car steering wheel covers and seat cushions can be classified as textiles, lubricants belong to the petrochemical industry, and car navigation and other electronic equipment. Different products are in There is a big gap in technical standards and production methods. At present, the state still lacks unified laws and regulations and related policies for the auto supplies industry, and the development of auto supplies is affected by the development policies of the auto industry.
On the whole, the country is promoting the adjustment and upgrading of my country's automobile industry, encouraging the development and manufacturing of high-quality, high-tech self-owned brand cars, and maintaining greater support for new energy vehicles. The release of a series of automobile industry policies has undoubtedly put forward higher requirements for automobile supplies.
Industrial planning guides the transformation and upgrading of the automotive industry
As an important part of the automotive aftermarket, automotive supplies are closely related to the development of automotive manufacturing. The "Energy-saving and New Energy Vehicle Industry Development Plan (2012-2020)" proposes to vigorously develop new energy vehicles and form a new energy vehicle enterprise with strong competitiveness. In 2015, the "13th Five-Year" Automobile Industry Development Planning Opinions issued by the Association of Automobile Manufacturers stated that by 2020, Chinese brand cars will occupy a leading position in the domestic market, and the production capacity of pure electric vehicles and plug-in hybrid vehicles will reach 2 million. Cumulative production and sales have exceeded 5 million vehicles.
In the "Mid and Long-term Development Plan for the Automobile Industry" and the "Implementation Plan for Improving the Consumption Promotion System and Mechanism (2018-2020)", both proposed to develop the automotive aftermarket and tap the potential of the aftermarket. And automotive supplies are widely used in car maintenance, In the aftermarket activities such as maintenance and modification, the development of the automotive aftermarket will undoubtedly boost consumer confidence in automotive supplies.
Current market situation: Product price fluctuations have increased, and the market scale has expanded significantly
Overall increase in automobile production and sales
The automobile industry is a multi-level integrated industry that can reflect the country's economic development and operation to a certain extent. In recent years, China's economy has maintained medium-to-high-speed growth, residents' income and consumption levels have steadily increased, the level of industrialization has gradually increased, and China's automobile production and sales have increased overall. According to statistics from the China Automobile Association, from 2011 to 2017, my country's automobile production and sales are in a continuous growth trend. In 2018, my country's automobile production was 27.809 million vehicles, and automobile sales were 28.81 million vehicles, ranking first in the world for ten consecutive years. However, due to the slowdown in economic growth, the Sino-US trade war, the decline in consumer confidence, and the introduction of preferential purchase tax policies, my country's auto production and sales have all declined slightly. In 2019, my country's auto production and sales totaled 2,5721,000 and 2,576 respectively. 9,000 vehicles, down 7.5% and 8.2% respectively.
Affected by the government's strategy to expand domestic demand and various consumption promotion policies during the epidemic, the production and sales of automobiles will be 22.372 million and 22.470 million vehicles from January to November 2020, down 3% and 2.9% year-on-year respectively. , The decline continued to narrow by 1.6 and 1.8 percentage points from January to October, respectively. The China Automobile Association predicts that in 2020, the annual car sales are expected to exceed 25 million, a drop of less than 2%, and the industry situation is showing a steady progress.
Steady increase in car ownership
In recent years, the rapid development of my country's automobile industry has led to a continuous increase in car ownership. According to data released by the Ministry of Public Security, from 2012 to 2019, my country's car ownership has increased year by year, with a compound growth rate of 13.4%. In 2019, my country's car ownership was 261.5 million, a year-on-year increase of 12.6%. As of September 2020, the number of motor vehicles nationwide has reached 365 million, of which 275 million are automobiles.
From 2012 to 2019, the number of private cars (private small and micro passenger cars) in my country has increased year by year, and its proportion in the number of cars in the country has shown an overall upward trend. According to data released by the Ministry of Public Security, the number of private cars in the country reached 207 million at the end of 2019, exceeding 200 million for the first time, with an average annual increase of 19.96 million in the past five years.
Product prices show a slight steady upward trend
With the development of the automobile industry in my country, the number of automobiles has increased year after year, and the demand for automobile products has correspondingly expanded; coupled with the continuous improvement of residents` income and consumption levels and the promotion of consumption upgrade trends, drivers` price acceptance of products has increased. The overall price showed a slight steady upward trend.
According to the information system monitoring of the "China Jinhengde Auto Accessories Price Index Network", the auto accessories price index in November 2020 was 125.1, an increase of 0.37 points from the price index in October 2020, a decrease of 0.297%. The 22 middle category showed 11 ups and 11 downs. The category that fell the most was car anti-theft devices with a decrease of 0.55 points, followed by solar film and GPS navigation. Automotive exteriors and automotive electronics both fell slightly. At the end of 2020, auto accessories sales will enter the peak season, and it is expected that the Jinhengde auto accessories price index will rise slightly in the future.
In November 2020, the price index of automotive exterior products declined. The price index was 112.88 points, down 0.7 points from the previous month, or 0.616%. Automotive exterior products showed a trend of 1 up and 2 down. The largest decline was solar film, which fell 0.45 points from the previous month, or 0.41%.
Trillion-level market gradually formed
The overall sales volume of China's automobile industry has increased. New cars have increased demand for solar film, color change film, car body waxing, and decorations. With the increase in car ownership, the demand for car cleaning, maintenance, repair and modification in my country has increased correspondingly, and increased demand Demand for related products. Relevant research shows that more than half of car owners will purchase foot cushions, cushions and accessories after buying a car; while some car owners will purchase car stickers, beads, incense, pillows, neck pillows, storage boxes, etc. Coupled with the increase in consumption levels and the overall volatility of the prices of auto supplies, my country's auto supplies market has gradually moved towards a trillion level.
Competitive landscape: automotive electronics account for the highest proportion, and lubricating oil giants compete fiercely
Product competition: automotive electronics accounted for more than 30%
At present, there are relatively many types of automotive electronic products in my country's automotive products, including car navigation, driving recorder, car speakers, car vacuum cleaners, reversing radar and other high-value products. Its market size accounts for 32.3% of automotive products. ; There are many types of car decoration products and car beauty and maintenance products, and the frequency of use is relatively high. Their market scales account for 29.2% and 26.7% respectively.
Domestic brands account for more than 70%
As a major category of petroleum products, lubricating oil has the characteristics of high technical content and high product added value. From the perspective of the lubricant industry, the domestic lubricant market has fierce competition between Chinese product brands and international brands, and decentralized competition is gradually transitioning to concentrated competition. Local lubricant manufacturers, large state-owned lubricant manufacturers, and foreign-funded lubricant manufacturers together constitute the main body of lubricant competition. The large number of products makes the domestic lubricant industry in a state of decentralized competition for a long time.
After 2000, domestic lubricating oil operators Kunlun Lubricants and Great Wall Lubricants accelerated the integration of their brands, forming a situation where domestic well-known brands and foreign brands jointly dominate the lubricant market.
Foreign brands have the right to speak in safety seats
The safety seat is a seat specially designed for children of different weights (or age groups). It is installed in the car and can effectively improve the safety of children in the car. In the case of a car collision or sudden deceleration, the impact on children can be reduced and the children's body movement can be restricted to reduce their injuries. In the early 1960s, Europe had already developed child safety seats for automobiles, and my country officially introduced the first child riding standard "Automobile Child Member Restraint System" in 2012. The overall development of child safety seats in my country lags behind foreign countries.
According to the [2019 Safety Seat Rankings" of the Top Ten Brand Network, among the top ten car safety seat brands, foreign brands occupy six seats. The only domestic brands are GB Goodbaby, CYBEX Cybex, and Shanghai Fueryou. Its own brand of Ruikaiwei and McInF (Ningbo)'s own baby brand are on the list.
Channel competition: Auto parts city and auto supply stores still occupy important positions
Nowadays, the main way for consumers to purchase car products is still the traditional way. Auto parts city and auto supplies stores are still the first choice for about 35% of consumers to buy auto supplies. With the rapid development of e-commerce, young people are increasingly choosing online shopping channels in the consumption of auto supplies, gradually keeping pace with other traditional and tangible markets.
Development trend: The market scale will continue to expand, and environmental protection has become an important standard
Although my country's auto production and sales declined in 2018, it still ranks first in the world, and my country's auto ownership still maintains a steady growth trend. With the encouraging development of new energy vehicles, my country's future production and sales in the automobile industry will not drop significantly. With the further improvement of consumption power, the consumption of installing electronic products in cars, car decoration and car modification will increase, which will further promote the expansion of the industry.
At the same time, the post-90s have gradually become the main consumer, young people are pursuing individuality, and automotive products will show a trend of personalized development, and DIY products will further increase. With consumption upgrades, consumers` sense of brand identity will be further enhanced, which will accelerate non-branding The elimination of small companies will also stimulate the enhancement of corporate brand awareness and brand establishment in the industry. In the current environment of ecological protection, my country's automotive product manufacturers must design and produce green products in order to better meet the requirements of national policies and gain consumers' favor.
