Japanese car sales decline, parts factory adjust customer structure

More and more Japanese spare parts suppliers have begun to open their closed supporting systems. Aisin China, which supplies mainly to Toyota, has signed a matching contract agreement with non-Japanese companies such as Shanghai GM. “The fire broke out in the city gate, and the fish in the pool.” Zhang Qiang (a pseudonym), the head of a spare parts company that supplies spring parts to the automobile company in Jiangsu, described the relationship between the Japanese vehicle and its spare parts supplier. “The order volume has dropped significantly in the next month. The customer has verbally informed us that from the beginning of November to the first three months of next year, compared with the original plan, the order volume is reduced by 30% every month. Sales will be reduced by about 10%, and my goal is to control within 10%." Zhang Qiang told the "First Financial Daily" reporter. The spring factory is a Japanese-owned Japanese company that is a three-tier supplier in the supply chain of the OEM. Indirect customers include Toyota, Honda, Shanghai GM and Ford. In the past few years, the company has broken the goal of a closed supplier system and gradually developed customers outside the Japanese car. "If you rely too much on a car manufacturer, when the customer market is not good, we will be hit harder as a supplier." Zhang Qiang said. Not only is this spring supplier, many of the spare parts suppliers supplying Japanese cars have seen a sharp decline in orders in the fourth quarter, and the decline in orders from Japanese automaker-based parts suppliers is even more pronounced. The reporter learned that Aisin's orders from Japanese cars fell by 50% in November, and the decline in orders of Denso was similar. Recently, Dong He, the general manager of Donglong Rilian (Danyang) Enterprise Management Co., Ltd., which has been introducing Japanese auto parts companies to invest in Danyang, China, is also depressed. Donghe and Men originally planned to introduce 50 Japanese small and medium-sized auto parts to China at the end of this year, but the possibility of this figure is still small. Some Japanese parts companies that originally planned to invest in Danyang have delayed their investment plans because they are worried about investment failure. This is the negative effect of the decline in Japanese vehicle sales. According to the latest data released by the China Association of Automobile Manufacturers, in September this year, Japanese cars fell 40.8% year-on-year, with Toyota, Honda and Suzuki all falling more than 40%, while Mitsubishi and Subaru sales fell by more than 60%. Mazda and Nissan sold in the month. The decline is also more than 30%. The German cars, American cars, Korean cars and French cars increased by 13.8%, 15.1%, 9.4% and 9.2% respectively, and domestic independent brands increased by 7.5%. In response to the decline in sales in the automobile market, Toyota and Honda stopped production for one week during the National Day. From October 8, several Japanese joint ventures such as FAW Toyota, GAC Toyota, GAC Honda and Dongfeng Nissan began to resume production, but in production beats. Both have slowed down significantly. Zhu Siming, manager of the automotive consulting department of Nomura Research (Shanghai) Consulting Co., Ltd. told reporters that the decline in Japanese vehicle sales will definitely be transmitted to the Japanese spare parts factory, but there is a certain lag effect. However, Japanese auto parts factories are not affected by Japanese automakers. With the earthquake in Japan last March and the consideration of industrial scale and cost, more and more Japanese spare parts suppliers have begun to open their closed supporting systems. The reporter was informed that Aisin China, which mainly supplies Toyota, has signed supporting contract agreements with non-Japanese companies such as Shanghai GM. Such companies are not rare. Zhang Qiang told reporters that the North American market is recovering now. The European market will choose spare parts for production in China for cost reasons. These factors are business opportunities for China's auto parts companies, and the company is strengthening its trade export business. When Japanese auto sales fell, German cars and American cars benefited. This is a good business opportunity for parts suppliers that mainly use German cars and American cars as customers, and orders will increase.

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