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Mobile WebSiteThis year, affected by the external environment, China's macroeconomic downturn, residents' income expectations are expected to decline, while measures such as automobile purchase restrictions and restrictions are widely implemented in many places. The automobile industry, one of the economic barometers, entered the most severe winter.
The shrinking car sales affect the volume of the car market
In July and August, China's auto industry began to enter the traditional off-season sales season. The next step was down. According to industry data, the total sales volume of automobiles in September was 2.39 million units, down 11.6% year-on-year, of which passenger cars sold 2.06 million units. The year-on-year decline was 12%. Passenger car sales continued to decline in October. Sales of passenger cars/narrow passenger cars were 2.014 million units/2.047 million units, down 12.9%/13.1% year-on-year. From January to October 2017, domestic passenger car sales increased by 330,000 units year-on-year, while the year-on-year growth in January-October this year was negative 400,000 units, basically returning to 2016 levels. In November, China's auto market suffered the biggest monthly decline in more than six years, down nearly 14% year-on-year, and this year will be the first annual decline in 30 years.
Sales in the automotive industry have been declining. Some automakers have reduced their prices in order to maintain their quantity. The cost pressure is transmitted upstream to component suppliers. The lighting industry, which is an important component, is also difficult to avoid. In the short term, it will inevitably lead to a reduction in the demand for car lights by car companies, which will lead to increased competition in car lights companies. In the long run, China's economic development has reached a turning point. In the next period of time, the growth rate will be relatively slow. The shrinking of the vehicle sales is the result of the downturn of the macro economy. In addition, the trade war has added more variables to the uncertainty of the market.
High concentration of the lamp industry is not conducive to the development of new entrants
Although LED upstream companies have strong financial strength, it is less likely that new LED entrants will replace the status of the assembly. First, the requirements for stability and consistency of household LEDs and automotive LEDs are very different. The domestic technical level in this field is still difficult to surpass the international first-line brands. Second, the lamp supply system needs to be cultivated for many years. There is no accumulation of vehicle customers, it is difficult to enter the supply chain of lights; third, mainstream lamp assembly companies gradually set up their own electronics factories to produce LED modules; fourth, the mainstream assembly plants have formed a patent layout, in highly concentrated vehicles In the lamp market, advanced users can use the patent to strike targeted against the latecomers, thus preventing the development of the latecomers; fifth, the life cycle of the LED light source in the lamp is uncertain, and may be replaced by the laser light source. After the popularization of LED lights, laser headlights and smart lights are the technically upgraded direction of the future of headlights. If the application progress is lower than expected, it may bring about continuous interruption of the value of the lights, resulting in Industry growth continues to decline.
