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The Impact Of Price Rise Of Auto Parts Caused By Covid-19
- 2020-05-22-

Two months has passes since the outbreak of the novel coronavirus worldwide. All countries' economic recession are at varying degrees, which has had a negative impact on all respects of life, among which the large-scale rise in the price of auto parts has had a certain impact on the car sector.

In terms of the whole car market, the shortage of parts caused by the epidemic has affected the production rhythm to a certain extent. If the price rises, the production cost of cars may rise, or even the new car will be put on the market late, thus affecting the growth of car market.

Parts appliers believe that parts prices increase will have a greater impact on China's car market, "the environment of its own car market is not good, and the car sales will not go up, resulting in the price reduction of the car. If the parts suppliers raise prices again, the impact will undoubtedly increase.". The main carmakers said that the profit margin of the main engine plant will be reduced, and the price of after-sales parts will be increased, which will reduce the market activity of consumption, in turn, affect the car market sales. Some enterprises will face the test of life and death, while others may have a better development environment.

In this case, the carmakeres and supply chain will be reshuffled; the business pressure of small enterprises will increase, while large and medium-sized enterprises will be able to obtain sound development after the epidemic; the automobile consumption will be more rational, and the price increase may cause the weak competitiveness of automobile manufacturers to be weaker, and consumers may pay more attention to the high-end brands due to consumption upgrading.

In the trend of parts prices rising, some domestic parts suppliers may benefit. The price increase of foreign parts will promote the surge of domestic parts factories, the whole vehicle market will temporarily enter the stage of production slowdown, and non-core technology parts wi

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