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The Chinese auto parts industry has always made and grown in recent years. However, so far can be against some difficult moments due to increases in wages, in local currency and raw material prices.
The Times of yore
Last year, in 2007, the market growth of China's growth experienced a record in terms of both production and consumption of automobiles. As incomes of people so that consumption increased. The year 2007 saw a production of 8.88 million units and consumption of 8.79 million units.
In terms of China's exports registered U.S. 2.09 billion U.S. dollars worth of trade. A year before that in 2006 sales revenue of Chinese manufacturers came to the U.S. auto parts $ 58.30 million. What is even more intriguing is the fact that the Chinese auto parts production is projected to reach U.S. 115.6 one billion U.S. dollars in 2010.
Much of this growth is attributed to about 1,000 auto parts industrial-oriented around the nation, and that about 10% of these are at the first regional development zones and clusters.
The current scenario
This year is seeing as a year of years of correction. According to the National Statistics Bureau, China, the growth rate witnessed during the first two months of 2007 was 90%. However, during the same period this year, 37% is only a difference of 53%. Undoubtedly, the rate of growth has suffered.
The costs of raw materials like oil and aluminum have increased, which in turn seem to have affected the cost of production. Manufacturers of tires car and the tires are most affected as a result. Along similar lines producer of molded plastic parts and automotive accessories for cars have also taken a beating.
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About the Author:
I am a journalist with 7 years of experience. Though, as a professional I’ve reported on myriad topics, my favorites remain to be the medical and the automobile industry. I blog as it gives me a platform to write about my interests.
Article Source: ArticlesBase.com – Is it Rough Weather for Chinese Auto Parts?