Tag: China

The supply chain for the automotive industry integrates four groups of players: original equipment manufacturers (OEMs), first-tier suppliers, sub-tier suppliers, and infrastructure suppliers.

As the automotive industry shifts from a traditional local business model to a global one, OEMs and their suppliers are experiencing much disruption and many challenges.

Key challenges faced by automotive companies

Transforming from local to global

Increasing globalization drives increased operational complexity. This requires a focus on integrating technology and processes which is costly and time consuming. While growth is clearly a goal of many automotive executives, cost reduction continues to be an important driver. The challenge is to balance these needs as well as managing supplier partners, product quality and local regulations.

Automotive companies are often restricted by local content and compliance regulations, requiring the establishment of multiple support centers across the globe. Local supply chain networks are required for accessing local markets and ensuring that products meet market-specific requirements.

Low cost country sourcing

More and more supply chains originate in low-cost countries, primarily in Asia and Eastern Europe and as a result, traditional organizational structures and business practices are being challenged. The aim is to achieve greater scale and cost efficiencies while capitalizing on rapidly expanding markets such as China and India.

Outsourcing is clearly a long term strategy. The attraction is lower employee costs and an educated labor pool. However, there are additional factors to consider such as extended lead times, quality assurance and protection of supply that need to be managed.

Transport

In local supply chains transportation is a low percentage of overall costs compared to parts and labor. Most companies do not consider transportation a core competency and outsource it to third- or fourth-party-logistics companies. Globalization increases both inbound and outbound (move) activity so transportation costs increase as a percentage of overall costs. Some automotive companies are considering taking control of their logistics network.

Risk in the automotive supply chain

Supply chain risks have increased due to globalization initiatives. Automakers (OEMs) are passing more responsibility down the chain to lower-tier suppliers, who often have neither the experience nor the capability to perform the tasks they are being assigned. Failures in lower tier supply can be critical so support such as engineering assistance, process and financial support are often provided by the automakers.

Supplier collaboration and visibility

Customer queries such as where is my order? require automakers to have scalable, repeatable, and globally consistent processes. These are necessary to track orders, goods in-transit and inventory. A combination of a systematized approach and human intervention is necessary to be effective given the diverse time zones, languages, and cultural business environments of the global automotive industry.

Companies must maintain and preferably enhance supply chain flexibility and customer responsiveness whilst managing product complexity and cost control. Designing supply chains for automotive manufacturers requires a high level of technical skill and global experience.

Excess capacity” is not a new topic to automotive industry. But with the emergence of the first negative growth of China’s automobile market in the April, “excess capacity” crisis will really happen.

Since this year, the automotive industry had the stimulus delisting, high oil prices. The central bank raise rates to tighten liquidity. Beijing began licensing policy to limitt the number of cars. All these encourage consumers to wait and see. Therefore, the traditional climax of small car market in May took the place of the traditional low season in Jun. Most car dealers do not have much expectation on the terminal market in the next 2 months. “Now the monthly sales is only 60% Of the regular month in last year. ” said a dealer in Guangzhou. The situation of the automobile market since the February of this year is very bad.

However, it should be noted that this round of “excess capacity”should be a structural surplus, rather than the overall surplus of the whole industry.
Automotive industry has entered a period of adjustment and it may have to undergo two years or so. The industry will not form a new round of rapid growth until 2013. But the magnitude will not be as high as before.

Stimulus over the last 2 years led to the early release of consumption potential. The delayed construction of urban infrastructure facilities, the withdrawal of stimulus policies and even changes in the macroeconomic environment are the objective factors of the industry’s entering into the adjustment period.

In the past two years, the automotive industry has experienced double-type growth. The production and sales scale of China’s auto market jumped from more than 9 million vehicles in 2008 to more than 18 million cars in 2010.

In automotive industry, the sales growth rate has always been higher than the output growth. But from January to April of this year, the growth rate of profit was obviously lower than the sales growth, indicating that the business efficiency is declining.

According to the latest published market index, own-brand dealers are most pessimistic about prices in the future. 60% of them think that car prices may continue to falin May. Car dealers of joint venture brand think that the price may remain stable. Even so, car companies have already felt the market crisis.

Experts of this industry analyzes that this round of “excess capacity” should be a structural surplus, rather than the overall surplus of the whole industry’. Experts also expect that the automotive industry has entered a period of adjustment and it may have to undergo two years or so.

Adhesives in the automotive industry are used in all the categories of vehicles, including passenger cars, heavy trucks, buses, and light commercial vehicles. Structural adhesives offer fast processing speeds and exceptional bond strengths. These compounds are formulated to improve vehicle performance, improve safety, lower weight, and enhance comfort. Adhesives in the automotive industry are used in interior and exterior applications which include roof panels, doors, headliners, interior dashboards, and hoods. Passenger car is the largest segment with 54% consumption of adhesives.
Adhesives in the global automotive industry are expected to reach $9.4 billion by 2019, promising huge opportunities for the firms operating in the industry. Asia Pacific (APAC) has been the top region in terms of total adhesives consumption due to increase in production of passenger cars and light commercial vehicles in China and India. APAC is expected to remain the largest consumer of adhesives in the automotive industry. Henkel AG & Co KGaA, 3M Co., PPG Industries, The Dow Chemical Company, and Sika AG are some of the suppliers of adhesives for various applications in the automotive industry.
Lucintel, a growth accelerator firm, has analyzed the demand of adhesives in the global automotive market and has come up with a comprehensive research report, Opportunities for Adhesives in Global Automotive Industry 2014-2019. This report provides an analysis of adhesives in the automotive industry, including analysis of the market trends, competitive landscapes, company profiles, emerging trends, and key drivers of the industry growth. The study also includes adhesives in the global automotive market forecasts through 2019, segmented by regions, applications, and chemical product types:
Adhesives in the global automotive industry segmented by regions:
North America
Europe
Asia Pacific
Rest of the World
Adhesives in the global automotive industry segmented by applications:
Passenger Car
Heavy Trucks
Buses
Light Commercial Vehicles
Adhesives in the global automotive industry segmented by chemical products types:
Epoxy Adhesives
Polyurethane Adhesives
Acrylics and Other Adhesives

This 160-page research report will enable you to make confident business decisions in the adhesives market in the global automotive industry. For a detailed table of contents and pricing information on this timely, insightful report, click on this link http://www.lucintel.com/reports/chemical_composites/opportunities_for_adhesive_in_global_automotive_industry_2014-2019colonopt_trend,_forecast,_and_opportunity_analysis_july_2014.aspx or contact Lucintel at +1-972-636-5056 or via email at [emailprotected] Lucintel provides cutting-edge decision support services that facilitate critical decisions with greater speed, market insight, and cost efficiency. To learn more, visit www.lucintel.com. You can also contact us through Live Chat in its website to answer your questions in real time.
About Lucintel
Lucintel, the premier global management consulting and market research firm creates winning strategy for growthwhether you need to understand market dynamics, identify new opportunities, or increase your profitability. It offers market entry strategy, competitive analysis, opportunity analysis, strategic growth consulting, M&A, and due diligence services to executives and key decision-makers in a variety of industries. Over the last 15 years, Lucintel has served over 1,000 corporations in 70 countries. For further information, visit www.lucintel.com.

The inspection to the automotive fault is largely depend on the auto diagnostic tools such as the x431 diagun and GM MDI which have function of read the car trouble codes, clear trouble code and data stream, component testing, maintenance light reset, read the computer version, basic settings and matching adjustment. Some automotive fault diagnostic computer such as the gm tech2 and autocom cdp could also provide value-added services such as the long-distance diagnosis for car fault, vehicle maintenance data, fault code table, management of customer files, business functions and so on. From these descriptions, we could find that the manufacture for the auto diagnostic tools such as the GO2OBD which is a brand for reliable auto maintenance devices in China for 5 years has paid more attention to the function varieties of the auto diagnostic tools such as the autel maxiscan and tacho pro.

The knowledge from the website http://www.go2obd.com/ would teach us that there are two main types of automotive fault diagnostic computer and automobile link mode which are wired and wireless. The Wired type is that the people connect the diagnostic computer and automotive diagnostic seat by the diagnostic connector and link lines. The wireless type has eliminating the need for the middle of the link line. The wireless transmitter device connected to the diagnostic socket location and the diagnostic computer connect to receive the device. As we all know, the usual wireless device is the Bluetooth device.

According to the manufacturer’s configuration and measurement models, the automotive fault diagnostic computer such as the carprog and bmw icom could be divided into three types which are dedicated, comprehensive and original instrument. The dedicated automotive fault diagnostic computer only work for the set model. The original diagnostic computer can only operate for their own models from the automobile factory. The majority of the repairers in the repairing market use the integrated automotive fault diagnostic computer such as the GO2OBD and x431. And this kind of testing equipment is generally produced by the professional fault diagnosis computer enterprise.

In order to pass the Automotive Diagnosis seat to have communication with car ECU host computer, automotive fault diagnostic computer such as the and x431 diagun must follow the relevant standards and protocols such as OBD. From the information of the website of GO2OBD, we could know more about that the OBD is the most traditional and efficiency standard and system for the auto diagnostic tools such as the GO2OBD and x431 diagun. Most of the auto diagnostic tools in our market today are all based on the OBD system and standard.

The automobile industry relies heavily on batteries. For a number of reasons, a person has to use an automotive battery, since it is not possible to get direct electricity supply in a running vehicle. For instance, did you ever wonder how does your car”s light get its power? Or how, for example, do you run the AC in your automobile even though you don”t have to pay any electric bill for it? All these are fuelled by the car”s battery! It is vital that the battery which is being used in a vehicle is a high quality one. That is one reason why the popularity of automotive lithium polymer battery China has soared with time.

It has appeared as a cost-effective solution to the general needs of an average vehicle owner. It offers light weight and is economic because of its low maintenance and long life. There are many reasons why the manufacturers have expressed their satisfaction over use of these batteries while making cars. Here are some of them:

i. Light in weight: Batteries which are made of lithium polymer are very light in weight. It is always preferable that the vehicle doesn”t have to put up with a heavy load. The problem with installing conventional batteries is that they put a lot of extra weight to the automobile which adds to the friction and reduces the fuel efficiency of the car. On the other hand, automotive battery made of lithium polymer offers lightness and thus increases the fuel efficiency.

ii.Small in size: Another advantage they enjoy is that these batteries are miniscule in size. One of the key reasons why they are so small is that they enjoy greater energy efficiency. So, the manufacturer can easily derive adequate power even with a battery which is a shade smaller (and lighter) in size & weight. Being small, they do not require much space inside the vehicle. So, the automobile manufacturers can come up with vehicles which are smaller, lighter and more economic.

iii.Good restoration power: They offer great storage capacity. The vehicle owner can put his reliance on an automotive lithium polymer battery fully, since these products do not generally run out of charge. They also have a very good life. So, once you get them installed in the car, you won”t have to worry about any replacement for quite a few years.

iv.Reasonably safe: An automotive battery China made of lithium polymer is quite safe. In fact, contrary to the general notion that these batteries are dangerous, they have become quite risk-free. Over the past decade, the manufacturers have adopted better technologies to guarantee higher safety. So, they do not cause any problem as such and do not radiate excessive heat even during extreme usage.

v.Cost effective: As explained above, automotive lithium polymer battery is very cost-effective. These batteries may cost a bit more while purchasing them. But they last for many more years and depreciate very slowly. So, the rate of consumption per year certainly works to the advantage of the consumers.

Keeping all these factors into consideration, it can be concluded that this form of battery has empowered automobile manufacturers with greater flexibility and more feasible options.