2013 China's aluminum wheel industry: development in the cycle

Rolling wheels can't stop the pace of time. Top keywords such as Top 100, "3C" certification, recall, and acquisition are filled with the 2013 aluminum wheel industry. The aluminum wheel industry is not big or small. Some major events in the development of the aluminum wheel industry in 2013 may be so insignificant in the development of the entire automobile industry, reviewing the major events that have taken place this year.

Keywords 1: 100 strong

In May 2013, CITIC Dicastar was selected as the top 100 in China's general trade export ranking for 2012, ranking 56th.

In June 2013, CITIC Dika was again the only Chinese company to be selected as the “Global Top 100 Auto Parts Suppliers”, ranking 92nd.

In August 2013, 11 auto aluminum wheel companies including CITIC Dicastal and Wanfeng Auto were selected in the "2012 Top 100 Export Enterprises in the Chinese Automobile Industry" list.

The sound of overcapacity in the aluminum wheel industry has come one after another. Even so, it cannot stop wheel companies from making rapid progress. On the list of the top 100 auto parts suppliers in the world, the giant auto parts giants are on the spot. The parts companies in China appear to be weak, and only the CITIC DeKalbs will enter the list, no matter whether they are the top 100 exporters or zero. Among the top 100 component suppliers, or the Top 100 Automotive Exporters, the aluminum wheel companies use a beautiful report card to give the parts companies a long list of facets.

Keywords 2: "3C" certification

In October 2013, the "3C" certification seminar was held in Baoding, Hebei Province. The meeting reached a consensus that the product of the automobile wheel products is not suitable for compulsory certification.

"3C" certification is not surprising in the home appliance industry. But for tens of thousands of automotive parts, not every part can be equipped with "3C certification." How many people know as a wheel of safety parts? Actually, it has no compulsory certification. It is understood that in recent years, there have been no major accidents caused by the quality of wheels in China. Due to the relatively large number of specifications and styles of the wheel's own products, and the relatively short life cycle, it is agreed in the industry that the “3C” compulsory certification is not easy to operate and difficult to promote. Since the specification is difficult to establish, then it is necessary to strengthen industry self-regulation and regulation. The leading role of key enterprises is indispensable. After all, externally imposed constraints are not omnipotent.

Keyword 3: Recall

In September 2013, Dongfeng Yueda Kia Motors Co., Ltd. recalled some K5 vehicles produced from September 7 to December 31, 2012, a total of 18,135 vehicles, and turned red lights for the production enterprises in the wheel industry. The reason for recalling this recall is that when the vehicle is running, when the tire pressure is insufficient and the hub edge is strongly impacted, the wheels of a few vehicles may break and there is a potential safety hazard.

Not to mention, Dongfeng Yueda Kia, which is deeply stuck in the “wheel hub”, has a problem of fracture in terms of its own wheel quality. This is not without obvious inferiority. Although the technology of automotive parts is good or bad, wheel technology has already been in the industry. Very mature, as a mature product, in the case of technology clearance, the material problem has become the key, if you do not cut corners, surely no problem with the product. Looking back at the 2013 auto market, a total of 5,309,700 vehicles were recalled, and an average of nearly 15,000 vehicles were recalled each day. There are many reasons for recall, mainly in terms of power transmission systems, brake systems, electronic and electrical appliances and engine failures. . The recall of wheels is rare. In terms of frequency and quantity, the recall of wheels can be considered as a matter of fact. Despite this, the problem of the wheel quality problem is less and less, because once it has a problem, it can become a major accident in the car crash.

Keyword 4: Acquisition

In November 2013, Wanfeng Auto invested a total of RMB 1.1 billion to acquire 100% equity of MLTH Holding Inc., and acquired 100% equity of Shanghai Dacromet Coating Industry Co., Ltd. with a cash of RMB 454 million.

The acquisition of the world's top magnesium alloy auto parts company has seen the strength and strength of the wheel companies. Wanfeng marches at the rhythm of eating one company each year, and takes this acquisition rhythm to the global market. An acquisition is enough to shake the wheel industry. The “acquisition” is a commonplace and is played every day. The company “going out and introducing it” is also something the public like to see. In 2013, the momentum of auto supplier mergers and acquisitions slowed down, but the mergers and acquisitions of Chinese auto suppliers continued to grow in reverse, thanks to China's growing auto market.

Looking at the development of the aluminum wheel industry in 2014 and in the future, the outlook does not seem to be clear, and there is a serious excess of low-end production capacity, which also prevents the company from building new plants. With dense materials, labor-intensive, heavy pollution, and high energy consumption, these words will certainly not link up with the booming companies. Nevertheless, the continuous increase in automobile production and sales will continue to force the rapid development of the aluminum wheel market. Foreign manufacturers have transferred factory capacity to developing countries and have also contributed to the faster development of the aluminum wheel industry. This seems to make the entire aluminum wheel industry fall into a vicious circle of vicious competition.

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