In recent years, the sales price of complete vehicles in China has been declining. As a result, the purchase prices of parts and components have also been declining. This has caused tremendous pressure on parts and components companies. Some industry insiders expect that in the next few years, with the increasing competition pressure in the domestic auto market, the purchase price of parts will be further reduced. In response, Bessie Asia Pacific Management (Shanghai) Co., Ltd. general manager Xu Youxi said in an interview with reporters during the auto show: "We have determined that the domestic automobile market cannot always remain at the current low price, and the purchase price of spare parts will be certain. It will pick up."
Bessie is a supplier of components for international air-conditioning compressors and cooling systems. The company currently has three manufacturing companies in China, including Shanghai Sanke Bellows and Dongfeng Bessie. This year, Bellow's sales in China increased significantly with the increase in the amount of matching products.
Xu Youxi frankly stated that the current operating pressure is very high. “Now the most serious problem we face in China is the pressure of rising raw material prices and the decline in purchase prices of vehicle manufacturers.†Xu Youxi said.
It is reported that under increasing cost pressures, Bessie will increase product localization next year to reduce costs.
However, Xu Youxi also stressed that the pressure brought by the current high cost and low price is a temporary phenomenon. With the continuous improvement of the product quality and performance requirements of consumers, the price of whole vehicles will rise in the future, and the price of parts and components will also be certain. It will rise with it.
“From our point of view, parts and components companies either use other raw materials or change product designs. For example, as the price of copper continues to rise, many domestic radiator companies have switched to aluminum.†Xu Youxi explained, “and improved. Product design requires funds. If the product sales price is too low, companies will not have the strength to develop."
He said that for a complete vehicle company, the low selling price is not conducive to its own development on the one hand, and it is also not conducive to the procurement of parts and components with guaranteed quality and performance. For parts and components companies, the current situation will make some companies go bankrupt or withdraw from the OEM market to the aftermarket. The companies that can survive are not technically strong or well-managed. These companies do not agree unfairly to low-cost procurement requirements in pursuit of sales, and their low-end product performance will certainly be inferior to high-end products.
Xu Youxi believes that whether it is a complete vehicle company or a parts and components company, it will inevitably increase the product price to ensure the performance of its products and the long-term development of the company.