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Novel Coronovirus Pandemicbrings New Challenges To The World Car Sector
- 2020-05-19-

ince the outbreak of novel coronovirus pandemic, although the governments all over the world are trying their best to fight the epidemic and launch various policies to support various industries to resume production and work as soon as possible and stabilize the economic situation, the car sector still faces a great challenge. At present, many enterprises in tire, electronic components and other fields have announced price increase, with the maximum increase of more than two times.

In the tire field, many tire brands including Sumitomo rubber, Michelin, Goodyear, Pirelli, etc. have increased their prices one after another. Since March 1, all brands have raised tire prices in North America market by 3% - 7%.  Because Japan and South Korea produce most of electronic upstream core components and materials for world car sector, due to the relatively serious impact on the two countries in this epidemic, the supply of relevant components has been significantly affected and therefore the price has increased. According to relevant data, at present, the price of MCU and other electronic components for cars has generally increased by 20-30%, and some even more than twice. Some analysts predict that MLCC, resistor, silicon chip, crystal oscillator, CCL, storage, panel, LED chip, etc. will not be spared in the new round of rising prices of electronic components. In other areas, some enterprises have also raised the price of their products. It is reported that the price increase is mainly due to the rise of upstream raw materials and the increase of transportation costs.

In addition, according to the prediction of relevant agencies, some auto parts with a high proportion of imports, including gearbox, EFI system, engine, turbocharger, etc., may also raise prices due to tight supply and rising raw material prices.

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