New combinations appear. In the next few years, China’s spring industry will continue to be dominated by small businesses. However, some competitive companies use their capital, technology, and human resources to take advantage of their advantages in capital and technology, and merge and acquire some companies to obtain the necessary production factors and market resources. Most of the state-owned and collective enterprises in the spring industry will be transformed into joint-stock or private enterprises.
Price competition turned to technology and quality competition. With the fierce competition in the market, the profit margin of the spring industry has become smaller and smaller, coupled with the ever-increasing demands of OEMs on the quality of parts, companies cannot rely on simple price cuts to win the market. Technology and quality have become the key to competition.
From July 1, 2006, China's auto parts tariff will be reduced to 10%, and the final prices of suspension springs, valve springs, stabilizer bars and other products for the automotive industry will gradually be brought in line with international prices, and will be used for mini vehicles. After a fierce market competition, the products supported by vans have a certain degree of competitiveness compared with the international market. However, the quality level cannot compete with similar products. Other products, especially the products for motorcycles and the prices of some small springs, have already been lower than the international market prices. Therefore, similar products of foreign countries are not worthy of us in terms of price, and competition is mainly manifested in quality.
Products are becoming lighter and more reliable. It is roughly estimated that in 2010 China's auto industry will have an annual demand of about 8 million suspension springs, and annual demand for valve springs will be about 30 million (excluding motorcycles and diesel engines). The technical development trends of these two springs are overall lightweight (high stress) and high reliability. For the currently existing special profile suspension springs and valve springs, due to the high material prices and complicated manufacturing processes, the production cost is higher than that of round cross-section springs. Therefore, there is currently no sign that the profiled cross-section springs must completely replace the round cross-section springs.
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