Is there a market for auto parts molds in the future?

Development prospects of automotive molds

(1) Industrial policy support

In recent years, a series of national industrial policies have built a good policy environment for the development of the automotive mold industry. In January 2019, 10 ministries including the National Development and Reform Commission issued the "Implementation Plan for Further Optimizing Supply to Promote the Stable Growth of Consumption and Promote the Formation of a Strong Domestic Market (2019)". Various measures such as the new energy vehicle subsidy structure, the promotion of rural vehicle replacement, and the further optimization of local government motor vehicle management measures to promote vehicle consumption and better meet the travel needs of residents.

(2) Huge market demand

As a pillar industry of the national economy, the automobile industry plays a role in promoting and leading many sectors of the national economy. According to statistics from the China Association of Automobile Manufacturers, for the whole of 2019, China's automobile production was 25.721 million, and the sales volume was 25.769 million. The production and sales volume remained the world's largest for eleven consecutive years. The implementation of my country's comprehensive construction of a well-off society and the continuous growth of residents' income will play a significant role in driving the consumption of the automotive industry, and the huge market of the automotive industry provides a strong guarantee for the expansion of the upstream automotive mold industry.

(3) Speeding up the replacement of cars

The launch of new models in the automotive industry and the accelerated speed of upgrading and remodeling of original models have become an important feature of the development of my country's automotive industry. With the improvement of Chinese consumers' requirements for automobile quality and the diversification of overall demand, my country's passenger car market has entered a stage of diversified and individualized development. The acceleration of the upgrading of automobile models and the continuous upgrade demand after the launch of new cars have also expanded the development space of the automobile mold industry.

(4) The shift of global manufacturing industry brings opportunities for China's auto mold industry

With the gradual recovery of the global economy, the return of high-end manufacturing in developed countries led by Europe, North America, and Japan, and the development of manufacturing in developing countries represented by India and Brazil, the demand for molds has gradually increased. Data show that in 2019, my country's total import and export of molds was US$8.185 billion, a year-on-year decrease of 0.48%. Among them, the total import value was US$1.939 billion, a year-on-year decrease of 9.37%; the total export value was US$6.246 billion, a year-on-year increase of 2.64%.

(5) The trend of global procurement promotes the rapid development of the domestic industry

The world's well-known automakers are multinational companies that have established production bases in major regions around the world to supply the local automotive market. With the rapid development of my country's automotive plastic mold industry, the technical level, quality level, and reliability have been significantly improved, coupled with my country’s labor cost advantage, so that my country’s automotive plastic molds have a higher cost performance, and more and more automobile manufacturers will China is listed as one of the important countries for global procurement of automotive plastic molds, which provides a better opportunity for the development of my country's automotive plastic mold industry.

(6) The technical level of the industry continues to improve

In recent years, domestic automobile plastic mold companies have achieved a large degree of improvement in equipment and technology through various methods such as the introduction, digestion, absorption and independent research and development of advanced technologies, and have narrowed the gap with foreign counterparts. The continuous improvement of technology has promoted the upgrading of my country's automobile plastic mold industry, promoted the development of the entire industry in a more healthy and orderly direction, and provided technical guarantee for the performance and quality of products.