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Global auto parts market growth slowed
Consultancy Roland Berger released "Global automotive supplier study" report predicts that growth in the global auto parts market will slow in the short term; in the long run, the industrial structure will undergo fundamental change, focusing on products, customers and supplier regional structure could realize significant gains.
The report notes that the global auto parts market booming in the past few years, and always maintain a high level of profitability. Since 2011, global automotive supplier EBIT margin continued to rise, reaching a record high in 2014 of 7.5%. It reports that in 2015 the global automotive industry volatility and uncertainty growing. Global light vehicle production is expected to continue to rise over the next two years, but the growth rate will decline. Among them, Europe will remain low, Japan will decline, NAFTA will moderate growth, China is still the only major growth driver.
In addition, faced with increasing pressure on margins OEMs have begun to cut additional costs, which exacerbated the friction between OEMs and suppliers. Therefore, the report predicts, suppliers while maintaining a high level of profitability on short-term growth will slow, downside risks outweigh the opportunities.
Roland Berger that, by the end customer demand continues to shift to Asia, and further affect raw material suppliers to the downstream expansion, money and capital market volatility and other factors, the future of auto parts suppliers face increased uncertainty, the industrial structure will a fundamental change, and redistribute income products and sectors. Automotive parts suppliers, this environment will generate more opportunities and risks.
