From March 11th to 13th, the "Seventh (Shanghai) Friction Material Technology Training Course" organized by the China Friction Sealing Material Association and co-organized by the Netherlands Lapinus Fiber Company was successfully held in Shanghai. During the event, Wang Yao, chairman of the China Friction Sealing Materials Association, said in an interview with this reporter that from February onwards, the automobile brake pad industry has shown signs of recovery, and, in the long run, the financial crisis is also a brake pad industry in China. Opportunity is greater than crisis.
Brake pad industry started to recover
Wang Yao said that last year, the unanticipated financial crisis quickly spread from the United States to Europe and China, and the brake pad industry in China has suffered a great impact. Especially on export orders, the brake pad industry was affected even earlier than other auto parts. In June of last year, a certain brake pad company in Shandong reported that the export orders for the brake pads of its supporting Chrysler vehicles in the United States have significantly decreased. At first, it was thought that this was only a decline in orders caused by fluctuations in the demand of individual companies in local markets. However, as of September last year, the domestic brake pad industry quickly appeared to have a weak overall export market. A company that originally exported 20 containers of brake pads per month, its shipment volume in October last year was sharply reduced to 2 containers; some brake pad companies that export 10 containers per month have only exported 1 container about. The entire brake pad industry has changed rapidly. Most of the brake pad production has been reduced by 1/2 to 2/3, and relatively good companies have also cut output by at least 1/3.
Why is there a sudden drop in brake pad export orders? Wang Yao believes that, first of all, it is the sluggish sales of new cars in overseas markets, and that automakers have reduced their production and reduced the demand for matching brake pads; second, the economic situation in the international market is uncertain. The unstable raw material prices have caused foreign parts purchasers and distributors to tighten the “pockets†and consume the stock first. This is the main reason why the export market has changed rapidly.
Wang Yao added that, as the brake pads are used as loss parts, even if the demand for complete vehicles is reduced, the huge automobile aftermarket will maintain a relatively stable demand. After foreign spare parts purchasers and distributors consume inventory, they still have to continue purchasing. As a result, the brake pad export market gradually began to pick up after the first few months of downturn. The latest development shows that since February of this year, brake pad export orders began to gradually rise, most brake pad companies have resumed normal production, and some companies’ market demand in February was even better than the same period last year.
Brake Pad Industry Strength Becomes Stronger
According to Wang Yao, there are nearly 500 brake pads in China. The annual output is nearly 400,000 tons, and the output value is over 7 billion yuan, of which 30% is exported to overseas markets. Similar to most auto parts products, the domestic brake pad industry is also rapidly growing with the Chinese auto industry. In the early 90s of last century, some brake pad factories began to be established, achieving the first leap in large-scale production of China's auto brake pad industry. From the late 1990s to the beginning of this century, a large number of brake pad plants have sprung up one after another, which has greatly increased the production scale and technical level of China's brake pad industry. In the past ten years, the output value and export scale of China's brake pads industry have also increased by 10 times and 20 times, respectively, from several hundred million yuan and less than 100 million yuan in 1998. Up to now, China has more than ten brake companies with a production value of hundreds of millions of yuan. The domestic brake pads can not only meet the original matching demand for all cars produced in China, but also, since 2005, some of the self-owned brake pads have succeeded. Realized the matching supply of Ford and Chrysler in the "Big Three Cars" in the United States.
In addition, in recent years, China's brake pad industry has taken the lead in India, Mexico, and other traditional brake pad manufacturing countries in terms of production scale and quality level. Moreover, some international brands of brake pads are also made up of a large number of local companies' OEMs. Basically established the global brake pads "manufacturing power" status.
Brake pad industry has more opportunities
In the face of the current financial crisis, how should the local brake lining enterprises "crime" to be an "opportunity"? Wang Yao believes that although China's brake lining industry is at the international advanced level in terms of product technology, process equipment, testing capabilities and industry standards, etc. There is still a certain gap, however, the "first square" enterprise in China's brake pad industry has been able to manufacture products that meet the needs of international and aftermarket markets, and has the ability to compete with internationally renowned brands of brake pad companies. Secondly, China has abundant raw material resources needed to produce brake pads. With almost no imports, China can achieve complete local procurement. This, combined with the cost advantages of the labor force, can ensure the cost-effectiveness of domestic brake pads in the international market. In addition, there are nearly 900 million vehicles in the world, which are doomed to a large and stable demand for brake pads in the aftermarket. Under the global financial crisis, consumers in various countries pay more attention to cost-effectiveness when purchasing brake pads, resulting in “high-priced†brake pads “losing favor†on the international market, and allowing “Made in China†brake pads to have greater international market share. The development potential.
Wang Yao believes that for the domestic brake pad industry, the opportunity under the financial crisis is greater than the crisis. At this time, local brake companies need to further enhance and stabilize product quality in order to establish the credibility of the "Made in China" brake pads in the international market. At the same time, local brake companies need to actively participate in foreign brand exhibitions and other activities to increase their efforts to expand into the international market, in order to accelerate the pace of China's manufacturing giants from brake pads to "manufacturing power."
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