How do CNC machine tool companies cope with the car market sales decline

Recently, with the car companies in July sales have been announced, the downward trend of the car market in the second half of the year did not usher in an improvement. In the first four weeks of July, China's auto market sold an average of 35,400 cars a day, down 15.7 percent from a year earlier, according to the federation of automobile manufacturers. On that basis, China's auto sales totaled about 1.1 million units in July, down 37.7% from the 1.766 million sold in June and down 29% from the 1.567m sold in the same period last year.

In the first half of 2019, China produced and sold 12.132 million and 12.323 million automobiles, down 13.7 percent and 12.4 percent from the same period last year. The sales decline was slightly narrower than that in january-may period. In June 2019, China produced and sold 1.895 million and 2.056,000 automobiles, up 2.5% and 7.5% month-on-month, and down 17.3% and 9.6% year-on-year. Among them, the sequential growth rate of passenger cars is higher than the industry, and commercial vehicles continue to decline.

It is reported that the car market decline mainly has the following reasons. First, after several years of rapid development, the automobile market is highly competitive and the sales market tends to be saturated. As consumer discretionary vehicles, consumption potential is declining. Second, under the influence of the economic environment, the bulk consumption market is generally in a downturn, and consumers' overspending expectations and consumption motivation are insufficient. Third, some consumers are discouraged by the high cost of maintenance. Besides the money that buys a car, at ordinary times oil cost, maintenance cost, insurance, road cost etc 200 total total project is calculated come down, also be a sum of money does not poor expense, to average worker pay a person, use take a walk to show a bit extravagant. So many young people complain that they "can't afford to buy a car but can't afford to keep one".

As an important downstream and consumer market of the machine tool industry, the decline in the sales volume of automobile undoubtedly has a great impact on the machine tool industry. According to the statistics of the national bureau of statistics on industrial enterprises above the scale, the accumulative operating income of the machine tool industry from January to may decreased by 1.0% year on year, the accumulative total profit decreased by 22.2% year on year, and the loss increased by 3.7 percentage points compared with the same period last year. According to the statistics of key enterprises contacted by China machine tool industry association, the revenue of main business decreased by 16.4% year on year, and the profit of each sub-industry generally decreased year on year. The new orders of metal processing machine tools decreased by 37.1% year on year, and the orders in hand decreased by 14.7% year on year. An important reason for the decline in first-half revenues in the machine tool industry was the decline in orders from the automotive industry and the 3C digital segment.

Now, the auto market again sales decline, and with it, may be the upstream demand tightening, which will undoubtedly have some impact on the machine tool industry. So in the second half of the year, the machine tool industry and the automotive industry close to the enterprise can be prepared in advance is crucial. So, machine tool enterprises can from what aspects of the force?

Longitudinal extension, in-depth exploration of the automotive market. Sales of some of these luxury brands have continued to grow, even as car sales have declined. Data show that in the first half of this year, BMW, lexus, red flag, Volvo and other brands maintained rapid growth, BMW became the "new leader in BBA", Cadillac exceeded 100,000 units, achieving the annual sales target of 55.6%, lexus in the first half of China sales growth of 36.5%. At the same time, the author noted that the production and sales of new energy vehicles, locomotives than the same period last year. For the machine tool enterprises facing the automobile field, on the one hand, they can face the automobile high-end market and pay attention to the research and development of high-end products. On the other hand, can also be extended in other areas of automotive services.

Expand the application field and expand the customer group horizontally. The automobile continuous many months of production and sales decline to the machine tool industry obvious impact, but also the chain reaction to the machine tool functional parts industry. In China machine tool industry association recently in an interview on parts of the rolling feature enterprises understand that now the user focused on the machine tool industry in the field of enterprises, large orders decline, on the other hand, the service of the niche, the proportion is balanced, can meet the personalized needs of enterprises, the drop was smaller, not even fall. In the same way, the machine tool enterprises previously focused on the field of automobile manufacturing can also deepen the development of market segments in the future planning, expand the customer group, and enhance the anti-risk ability of the enterprise; We can also turn to other industries to develop foreign markets and comprehensively improve the anti-risk ability of enterprises.

Adhere to technological innovation, in the precipitation of development. The industry development slowdown, for the machine tool enterprises, is a challenge is also an opportunity. When the market situation is not good, enterprises have more time to practice their internal skills -- they can devote more energy to maintaining old customers, expanding new fields, developing new products, making breakthroughs in new processes, and multi-channel sales. At present, China's machine tool industry is moving forward to the "advanced" field, which requires enterprises to make more investment in scientific and technological research. In the case of market recession, enterprises might as well take the opportunity to clarify the development ideas, re-plan the product market and scientific and technological research direction, to strengthen the hard power of enterprises.

As the ancient saying goes, "changes lead to changes, and they last for a long time." in the face of market changes, positive actions may open a new situation for enterprises. For the overall development of the industry, more enterprising and innovative enterprises are also needed to promote the industry to advanced development.