The machine tool industry is affected by 9 million car idle capacity

Abstract Recently, the production and sales data of China's auto market was released in April. According to the data, the production and sales of automobiles in April were 1,895,400 and 1,841,700, respectively, down 8.9% and 9.5% from the previous month. Although the trend of micro-growth has been established, but domestic and foreign listed car companies...
A few days ago, the production and sales data of China's auto market was released in April. The data showed that the production and sales of automobiles in April were 1,891,400 and 1,841,700 respectively, down 8.9% and 9.5% respectively.

Although the trend of micro-growth has been established, the impulse to expand domestic and international listed car companies remains undiminished. Since 2012, many Chinese auto companies have started capacity expansion plans. It is estimated that by 2015, the total production and sales targets of China's six major vehicle manufacturers FAW, SAIC, Dongfeng, Changan, GAC and BAIC will exceed 28 million, and the total production and sales targets of the six independent brands of Chery, Geely, BYD, Great Wall, Brilliance and Jianghuai will be achieved. It will also reach 12 million units, and the annual sales volume of 40 million units will exceed the current sales by more than twice. According to the "2012 Global Automotive Executive Survey Report" released by KPMG, China's automobile idle capacity reached 6 million in 2011. It is estimated that by 2016, idle capacity will rise to 9 million. By then, the competition in the Chinese passenger car market will intensify fiercely, and enterprises will face the survival of the fittest, while large-scale mergers and acquisitions and market adjustments will emerge.

According to statistics, China's auto industry is currently the mainstay of machine tool consumption. Machine tools account for about 2/3 of the total investment in fixed assets of automakers. The demand for machine tools for auto parts processing is about ten times larger than that of automakers. 70% of the industry's machine tool needs. Three years later, due to the large amount of idle capacity and large-scale mergers and acquisitions in China's auto industry, the demand for machine tools in China's auto processing industry will gradually decline, and the machine tools it needs will be more environmentally friendly and efficient.

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