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Auto parts are rising in price

2020-05-08    Author:   Source:Gasgoo   Views:1175    

Currently, for a variety of reasons, auto parts are rising in price, which may last six months to a year.

auto part, supply chain, Fastener Expo Shanghai, International Fastener Show China

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As the overseas epidemic continues to spread, enterprises in the auto supply chain have stopped production on a large scale, and their production capacity has been reduced. The supply and demand of many key raw materials and parts are out of balance, leading a group of component companies to raise the prices of their products.


Recently, a main engine factory revealed that the company recently encountered the phenomenon of component price rise, the main reason is that the output of the main engine factory is reduced, in addition, due to the impact of the epidemic, the demand of the imported parts of the freight increase. Depending on the components, the components increase in 1%-3%.


It is understood that a number of enterprises in the field of tires, electronic components and other parts have announced parts prices, the highest increase of more than 2 times.


Rising prices of auto parts will inevitably have an impact on the auto industry.

In terms of the overall car market, the parts shortage caused by the epidemic has affected the production rhythm of the whole car to some extent. If the parts price rises, it may increase the production cost of the whole car, or even delay the launch of new cars, thus affecting the growth of the whole car market.


A parts company believes that the price rise of parts will have a relatively big impact on the Chinese auto market. "the environment of the large auto market is not good, and the sales volume cannot go up, leading to the reduction of the vehicle price. If the prices of parts supply chain enterprises are raised again, the impact will undoubtedly increase."


A main engine factory said that the profit margin of the main engine factory will be reduced, the price of aftermarket parts will be increased, will reduce the market consumption activity, in turn affect the car market car sales.

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