China's filter companies go to the matching market in the era of Lee

Filters are air cleaners that protect the engine by filtering the air, oil, and fuel that enter the engine, and at the same time increase the efficiency of the engine. This is an essential part of the car engine. . In view of the direct matching relationship between vehicle filters and vehicles (or engines), with the rapid development of China's automobile industry in recent years, the rapid increase in vehicle ownership has provided a vast market space for China's automotive filters.

First, the demand for automotive filters is on the rise

The latest statistics from the China Association of Automobile Manufacturers show that in the first 11 months of 2010, the cumulative sales volume of automobiles was 16.3954 million units, an increase of 34.05% year-on-year. It is expected that the annual production and sales of automobiles will reach 18 million vehicles this year, an increase of 32% year-on-year. In recent years, the rapid development of China's auto industry has driven the market demand for auto parts. The filter industry is an example. It is expected that the total demand for automotive filters in China will increase to 1.16 billion sets in 2020.

Second, the automotive filter market is fiercely competitive

The huge filter market has attracted the attention of many manufacturers. The increasing participation of domestic and foreign companies has resulted in increasingly fierce competition in the current filter industry. At present, there are more than 1,000 filter manufacturers in the country. Due to the variety of vehicle filter products and structures, they are suitable for high-volume production with a high degree of automation. Small-lot workshops based on manual operations can also be used. As a result, most production enterprises are small in scale, and there are more than 30 large- and medium-sized enterprises. Monopoly enterprises are not yet formed in the industry.

The fierce competition in the filter market is mainly manifested in the aftermarket. The reasons are mainly the following two points: First, the filter is a wearing part on the automobile and needs to be replaced on a regular basis. Therefore, the sales volume in the aftermarket is very large. The number of filter companies that have competed for the aftermarket is far more than the matching market. Secondly, there are many manufacturers in China's automotive filter industry, and the scale is generally small. Most of them are hand-workshop-style automotive filter companies with incomplete production conditions, poor detection methods, and small scale. These companies are basically all Can not reach the matching requirements, so it can only compete in the aftermarket. The fierce competition of enterprises makes the concentration of brands in the aftermarket of the filter very low, and the market share of the first five filter companies is only 15%. In the matching market, the market share of the top five filter companies reached 40%.

Third, the era of low-profit filter companies go to the matching market

Although the demand for filter aftermarket is very large, but as more and more companies enter this market, 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. How should the filter company break through?

According to industry sources, filter companies must enter the supporting market in order to stand out. Due to the high requirements of the matching market, there are not many companies entering the market, so 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.

Fortunately, at present, some filter manufacturers with a certain scale in China have realized this and have made great efforts to enter the supporting market. Although companies entering the supporting market will face difficulties of this kind or another, this has become a trend. .