China's forklift parts industry has been affected by rising costs of raw materials, and it has developed in the direction of meager profits.
(1) The shifting cost of entire vehicles has led to sharp declines in the profits of parts and components companies. In recent years, vehicle companies have scaled up their prices and waged price wars. The entire vehicle company has transferred part of the cost of price reductions to the parts and components companies it supports. Spare parts companies have taken a variety of measures to remediate, but unprecedented pressure to reduce or make the relevant parts and components companies hard to prevent.
(2) The parts and components companies keep their prices down and reduce profits by themselves. In general, each component of the vehicle company and the OEM has 1-4 component suppliers. In recent years, some component companies have been trying to expand their market share while fighting for technology, quality, branding, and after-sales services. , Starting to compete with each other on the price, this will inevitably lead to a decrease in the respective profits of competing companies.
(3) The price of raw materials rose sharply and squeezed profit margins of parts and components companies. In recent years, various raw materials used for forklift production have risen sharply, which has added to the cost burden of the entire vehicle industry and forklift trucks. In particular, parts and components companies have been hit hard by the double attacks of the OEM and raw material prices.
(4) The international component giants have occupied market share, especially in the electronic control of electric forklifts and other parts. With their advanced technology, quality, brand and after-sales service, they have entered the supply chain of domestic major auto and OEM companies. At any cost, it seizes market share and gradually realizes localization. For local parts and components companies, it competes with international giants on the same stage. Because it is difficult to rival each other in terms of technology management, the pressure to survive increases, and profits decrease.