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Advantages And Disadvantages Of China Aluminum Wheel Industry Development
2019-08-28 18:59:41


advantage analysis

First, there is a cost advantage. Aluminum wheel are a low value-added labor-intensive industry, compared with foreign competitors, China's aluminum wheel industry has a low cost advantage.

China's Aluminum Wheel enterprises, the average price of 39 US dollars, the European Union, the United States and Japan, the average price of the wheel are more than 70 US dollars. China's Aluminum Wheel hub of the cost of composition, the proportion of raw materials from about 55% to 60%, labor costs accounted for 4% to 5%; and foreign developed countries to produce similar products in the cost structure, the proportion of raw materials is about 50%, labor cost ratio 15% to 20%. Low labor cost is the main reason for the competitive advantage of China's automobile aluminum wheel industry.

Second, with a market advantage. China is the world's largest developing country, residents income levels and consumption levels are constantly improving, the automotive market has a huge demand potential. China's auto production and sales from 2009 topped the world first and remain so far. In accordance with the domestic car 65% Aluminum Wheel loading rate calculation, the vigorous development of the domestic auto market formed a huge demand for Aluminum Wheel.

Disadvantage analysis

First, the enterprise is small. At present, most of the domestic wheel enterprises do not form economies of scale, the general cost is high, the international competitiveness is low. Among the many hub enterprises, several large-scale, strong enterprises such as CITIC Daika, Wanfeng Auto and other carved up the domestic OEM market, CITIC Daika and other leading enterprises to export to the major international OEM market, the rest of the hub plant supply Domestic retail market. Small scale, low concentration of industry, repeated investment phenomenon is serious, it is difficult for enterprises to achieve an effective economic scale.

Second, R & D investment is insufficient. International research shows that R & D spending accounts for less than 1% of sales revenue is difficult to survive, 2% barely maintained, more than 5% are competitive. Although more and more Chinese companies are aware of the importance of research and development, is gradually increasing the intensity of technology research and development.

However, the R & D investment in the hub industry is poor, R & D investment is still insufficient, generally 1% -3% of sales revenue, while foreign R & D investment ratio of 5% -10%.


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