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Great Int'l Holdings Limited

Address:606RM, Crown City, No.216, Changjiang Road, Qingdao Development Zone, Shandong, China

Tel:+86-532-86993701

Phone:+8618561839011

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E-mail:greatwheel05@great-group.net

Car Snow Wheel Development Status Quo

Car Snow Wheel Development status quo

China's automobile snow wheel industry concentration is low, low-end capacity serious excess

"In the held" cross-strait wheel industry innovation seminar ", when the other veterans are happily visited Siyang development (Figure), the company has a long history, District "wheel industry park", from a device manufacturing company, but a CEO to express their concerns.

The boss's fear, from the development of the automotive wheel industry status quo. Automobile snow wheel is a material-intensive, labor-intensive products, aluminum casting is pollution, high energy consumption industry, the current industry is gradually moving to less developed countries. China has now become a car snow wheel production power, but the industry concentration is low, low-end capacity serious excess.

And the status of overcapacity, it seems that did not stop many companies on the car snow wheel investment enthusiasm. It is understood that most of the car snow wheel enterprises have the idea of expanding production capacity. Some of which are aimed at high-end market, and some companies intend to continue to invest in ordinary products, some equipment manufacturers are also expanding investment; some enterprises only tens of millions of investment, and some business investment is as high as more than one billion The

According to the China Automotive Industry Association, Deputy Secretary-General Wang Xiaodong Committee of the wheel, the current domestic production of more than 200 million car wheels, even if the truck is not included in the wheel, the car snow wheel production is also much more than the amount of car The The result of overcapacity is that more and more enterprises in this field, the industry concentration is very low, resulting in enterprises have to rely on the price of the status of vicious competition.

One side is the fierce market competition, the other side is a lot of enterprises are still building expansion, in the car snow wheel production capacity in the case of serious excess, why we are scrambling on the big production capacity? Hubei Dongtai Aluminum Wheel Co., Ltd. Chairman Chen Rihong that there are marginal costs and marginal benefits of the problem. Car snow wheel costs more than 60% are aluminum ingots, raw materials accounted for a large amount of money, coupled with the need for 3 to 4 months of the return time, so the flow of capital and early investment are great. The wheel business is usually a price advantage to capture the market, to reach a certain size in order to offset the fixed cost, so companies must increase production capacity and scale to digest the cost and gain.


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