When will the high price bubble of auto parts burst?


The rapid development of the auto market led to the development of the parts and components industry. However, as the vehicle price reductions intensified, parts and components did not drop. Instead, they rose steadily. What are the reasons leading to the high prices of spare parts? Take a look at the following reports:

First, the auto manufacturer determines the price of accessories

In terms of raw material suppliers, the rise in the prices of raw materials such as domestic steel products has a certain negative impact; in the case of parts manufacturers, the imported parts are subject to a certain degree of cost increase due to the exchange rate, but on the other hand, the rapid increase in the sales volume of whole vehicles brings about batch production. Production will reduce the production cost of accessories, and imported accessories will gradually be replaced by domestic accessories, which will also lead to a decrease in the cost of accessories...<Details>
Second, consumers do not know enough about the cost of using the car

Most of the current car buyers are buying new cars for the first time, and their concept of the use cost is not very clear. Some surveys have shown that the current car buyers in China mainly consider factors such as price and appearance, while the price of accessories is hardly considered. Since there is no market pressure, auto makers certainly will not give up this huge source of profits ... <details>
Third, the market is profitable

The auto market walked around and found that the prices of automotive parts and components that were sold at about the same price were strikingly dissimilar: the gasoline filter was the same. Bora was priced at 38 yuan, and the corolla was priced at 205 yuan. After a rear brake, Elantra sold 144 yuan, and Sun sold 588 yuan. There is not much difference in the technical content of the wearing parts, the highest price difference of 20 times! The mystery hidden by such a spread is profound... ...more

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There are a lot of reasons for the high prices of spare parts, but it boils down to these points: In order to maintain the cooperation with the auto manufacturers, the prices of the parts will be hampered by the vehicle manufacturers and the consumers The lack of cost considerations does not care much about the price of accessories, which gives a space for high prices for accessories.

How high is the cost of keeping a car?

However, another issue has also attracted our attention. There is no profit in the spare parts industry. There are reports that the profitable black hole of accessories has been neglected for three reasons: First, it is too boring to talk about parts and it is not as interesting as talking about the whole vehicle. Second, the profits of the vehicle are direct and easy to attract attention, while the profits of accessories are indirect and are easily diluted. Third, the professionalism of accessories is stronger. No matter whether it is in production or sales, it is a "nighting owl and bird squatting". The general staff is puzzled. I think it is not unreasonable. This really explains the good and bad of the parts and components industry. No one will give up this opportunity for profit.

The existence of such huge profits and high prices, such a market will be maintained for a long time, watching wave after wave of vehicle price cuts, consumers are also looking forward to the decline in the price of accessories ... ...

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