Ten years of accession to the world car filter industry development
Since 2011 when China joined the WTO, 2011 has entered its tenth year. China’s auto industry has achieved rapid development during this decade. The automotive filter industry, which is inextricably linked with the development of the entire vehicle, is also developing rapidly.
Intense market competition
Since the accession to the WTO, the rapid development of China's automobile industry has driven the rapid development of the filter industry. It is expected that the total demand for automotive filters in China will increase to 1.16 billion sets in 2020. With the gradual expansion of the number and scale of production enterprises, the level of filter technology is also increasing. Filters that meet the latest emission standards have been successfully developed and mass produced. The huge filter market has attracted the attention of many manufacturers. Domestic and foreign companies have joined the increasingly competitive market. In particular, the competition in the aftermarket has become more intense.
The reasons are mainly the following two points: First, the filter is a wearing part and needs to be replaced on a regular basis, so the sales volume in the aftermarket is very large. Secondly, there are many manufacturers in the automotive filter industry in China, and the scale is generally small, the concentration of brands is very low, and the filter market is fiercely competitive.
In fact, the filter aftermarket has entered the era of low profit, and the profit space is still shrinking. Coupled with the appreciation of the renminbi and the rise in raw material prices, various factors have made the already difficult enterprises even worse. Some people in the industry say that filter companies must enter the market in order to stand out. Because the requirements of the supporting market are high and there are not many companies entering the market, the competition is relatively good and the profit margin is relatively high. However, foreign and joint venture brands have seized the market and almost monopolized the supporting market for high-end vehicle filters. Therefore, it is particularly important to increase the technical strength of independent brands.
Opportunities and challenges coexist How can companies break through?
For Chinese companies, the automotive filter market challenges and opportunities exist, how should filter companies break through?
First of all, the domestic R&D and innovation capabilities of domestic filter companies are relatively weak. Professional technicians, managers and high-level skilled workers are in short supply, and it is difficult to meet the demand for high-speed development of the industry. The state should give certain policy support, strengthen common technology research that supports the development of filters, and strengthen the training of talents in relevant professional and technical fields.
Second, most filter companies have smaller scales, low production concentration, serious low-level duplicate construction, and low-end product excess capacity. Faced with this situation, filter companies should strengthen cooperation and integration. This will be more able to exert scale advantages. In addition to mergers and reorganizations, the establishment of industrial clusters is also a very effective way.
Thirdly, for the filter companies themselves, brand building is a long-term development path, and ensuring the coordinated development of quality, brand, and service can enable companies to achieve sustainable development. Otherwise, it will only be short-lived and eliminated by the market.
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