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In 2005, the demand for automobiles in China will be around 3.2 million, and the number of cars will be around 25 million. From this, it is speculated that at least three million sets of automotive glass will be required each year in the complete vehicle market. The growth rate of the international auto glass market is much lower than that of the domestic market. However, due to the larger base, the absolute increase in demand will also be significant.
Last year, China’s auto glass production exceeded France and became the world’s fourth largest automotive glass producer. Although China is a major producer of automotive glass, it is not yet a strong producer of automotive glass.
There are many problems
Experts pointed out that there are still many problems in the automotive glass industry in China. Due to the relative lucrative profits of the automotive glass industry, there are currently more than 200 auto glass manufacturers in China. However, apart from a few large-scale enterprises, many auto glass companies The scale is relatively small and the product quality is not high. In addition, the phenomenon of supply exceeding demand in the automotive glass industry appears to be fierce.
In addition, the cold current at the end of the automobile manufacturing industry has long been conducted to the automotive parts industry. Poor car sales, car prices avalanche, business inventories increase, the entire vehicle company is all over the surface and can only transfer part of the cost pressure to the auto manufacturers.
Foreign companies advance
In addition to fierce competition from domestic auto glass companies, foreign companies have also entered the Chinese market. In a recent auto glass exhibition, Germany's DIM and Continental Glass, PPG and Tekmann of the United States, MSC of France, Pilkington of the United Kingdom, Amig of Italy, etc. are well-known abroad. Glass and equipment manufacturers have come one after another. These companies are very optimistic about the Chinese market.
Due to the small scale of many automotive glass companies in China, this has affected Chinese auto glass companies to support multinational companies. The United States main engine factory requires the parts factory to pass the QS9000 authentication, the German main engine factory requires the spare part factory to pass the VDA authentication, but most of the backbone car glass factories in China only pass the ISO9002 system authentication. QS9000 certification and VDA certification are all based on the ISO9000 quality system standards for the automotive industry. Domestic auto glass companies, without excellent product quality, can hardly become long-term partners of transnational auto giants and enter their core supply chains.
Taking into consideration various factors, domestic auto glass companies, especially some small and medium-sized enterprises, have already felt the pressure of competition. The entire industry is faced with reshuffling. In the fierce market competition, whoever strengthens its own strength as soon as possible will win more points. opportunity.
Domestic business strategy
Experts pointed out that China should promote joint reorganization of auto glass companies through mergers, acquisitions, joint ventures, leases, and holdings, develop large-scale glass group companies, and participate in market competition with low-cost, high-quality, multi-species strong momentum. This is the way out for the Chinese automotive glass industry. In addition, Chinese automotive glass companies must improve product quality by introducing or modifying production lines.