CNDC successfully hosts a video dialogue on the economic situation and strategies of automobile die-casters

Reading time: min

In the afternoon of June 11, 2022, Jefferey Zhou, CEO of CNDC, hosted a live video dialogue of the "New Economic Situation Analysis and coping Strategies of automobile Die-casters". Well-known experts and senior executives from industry leading companies, top international consulting company, and well-known security firm were invited to attend the dialogues on the new situation of the global economy and the  responding strategy of auto-parts die casting enterprises. An in-depth, comprehensive and constructive discussion on the development strategy of automobile die-casting enterprises under the new economic situation was conducted through the keynote speech, guest interaction, audience interaction and other ways.

Chairmen, senior executives and decision-makers of leading die-casting enterprises, as well as players from die casting industry, upstream suppliers, downstream consumers registered and listened to the meeting. Nearly 3,000 people signed up to participate in this activity.The event was widely praised by the industry.

Now we will share the wonderful views of the speakers in the dialogues for you to exchange and learn:

Jefferey Zhou, CEO and Founder of
the Chinese Die-Casting Web (CNDC)

Zheng Yun, Senior Partner and
Vice President, Greater China at
Roland Berger

In the short term, the challenges brought by the COVID-19 pandemic and the supply chain, including battery raw materials and semiconductors, will continue. In the medium and long term, I am optimistic about the overall global automobile market, especially in the scenario-based autonomous driving, intelligent electric vehicles and the digital development of the whole industrial chain of Chinese market.

Cui Yan, Chief Auto Industry Analyst,
Huaxi Securities Co., Ltd

As for the market in the second half of the year, the supply is recovering rapidly. Combined with a policy stimulus, the whole auto industry is very optimistic in the second half of the year while the growth rate will reach more than 20% in the third and fourth quarters. Another focus is the track on the integrated die-casting, which is now in such a just-starting process.

Zhang Xi, Head of Shanghai Sino-German
Industrial Promotion Center

There is a trend that Chinese die casting enterprises are laying out and investing in Europe, especially in the eastern Europe, and the activities are still very frequent.The casting market across Europe is moving from western Europe to eastern Europe and southern Europe. In the current environment, the trend that Chinese die-casting enterprises ‘s offshore investment is quite obvious.

Fang Jianru, General Manager,
Dalian Yaming Auto Parts Co., Ltd

Dalian Yaming is a relatively old enterprise. It was founded in 1952, with a history of at least seventy years by now. The impact of the pandemic is still very serious this year. For example, the original target of of the company for this year is to double that of last year, the double again next year, or double the target for three consecutive years in the Dalian factory, but the pandemic has given us a blow.We have a growth of 100% in the first three months. But by April it was falling back a lot. There are some reasons. One is the impact from the pandemic, or especially pandemic in Shanghai, Changchun and Tianjin. Second is that we also have a lot of exports, exports to European market are affected by the Russo-Ukraine war. I think the impact from the above is very strong. Into June, the domestic market is gradually recovering, but I think the situation in Europe is not so optimistic, and we have not seen a very obvious and a significant growth.

Han Yanqiu, General Manager,
ASC (Tianjin) Auto Parts Inc.

ASC (Tianjin) Auto is a subsidiary of FBG, a private group headquartered in Cleveland, Ohio, USA. It mainly produces industrial products in the OEM aftermarket of the automotive industry. It is a global supplier with a history of one hundred years.We believe that: First, the global economy has been suppressed in the past two and a half years. Although countries around the world, including the United States and China, have implemented active monetary policy, and the money supply is extremely loose, basically the current problem now is the impact of the supply side, mainly the impact of the pandemic. Demand is not stimulated. So in the past a few years, there has been no big prosperity, so there will be no big crisis. Second, if the United States has entered a period of stagflation, and the Federal Reserve is also carefully protecting the market, they are more worried about the collapse of the US market. The Fed is bound to introduce more aggressive policies to maintain economic stability. Third, according to China's economic stabilization conference, Shanghai and Beijing are now basically actively promoting the resumption of business, market, work and production. State Council has resolutely implemented a package of 33 policies in six areas to stabilize the economy. We need to prevent the pandemic, stabilize the economy and secure its development. Fourth, in terms of export, as one of the three drivers of Chinese economy, export plays a very important role in China's economy, and the stable employment of the country cannot be underestimated. So I believe that the Chinese government will continue to introduce some positive policies. So about the future of the economy, I am optimistic about the future exports. We believe in the country and in the country's management ability. But as an enterprise, we will actively respond to it, do a good job in cost control, keep talents, improve the competitiveness of products, ans improve the added value of products.

Guo Wujun, Senior Deputy Chief Engineer,
Changan Automobile New Energy Vehicle
Technology Co., Ltd.

Changan Automobile has passed the evaluation of the national 863 Project since 2001, and spent five years to do technical research. At this stage, the technical preparation was completed. after another two years, in 2008 the company enter industrialization promotion stage. From 2009 to now, it is the market operation stage of the company. Chongqing Changan New Energy Vehicle is an automobile enterprise to enter the field of new energy vehicles earlier. The future product platform layout: small platform is urban mobility scooter, middle platform is economic family compact models, high-end quality experience and high-end models. We know that the integrated body is a number of traditional body parts, designed into one or more parts, and then connected to form the whole body. Its advantages are to improve the platform evolution, improve the performance, improve the manufacturing accuracy, shorten the product research and development cycle, improve the space utilization rate, and shorten the manufacturing chain. For new energy vehicles, there is a great potential for development. I believe that integrated die casting is a big trend, and in the future this will be used in high-end cars. For low-end products, with the breakthrough in materials, I believe that there will be space and opportunities for development.

Cai Zifang, Chair, Shunjingyuan Precision
Casting (Shenzhen) Co., Ltd.

Hong Kong enterprises face a big problem, the damage from this wave of pandemic is big, but the impact from the US sanctions and from the industrial chain relocation is bigger and many foreign enterprises moved out of China. As Europe and the United States market accounted for nearly 70% of Hong Kong enterprise’s business, the situation is very serious. What is the problem right now? you will either move out of Chinese mainland to continue our European and American business, or you will invest in Europe, or set up factories in Latin America, or go to run factories in Southeast Asia, we all face a big dilemma. We believe that a large number of purchase orders from Russia are pouring into China, including equipment, machinery and electronic products, especially the parts of maintenance consumables, etc. They are in urgent need of emergency procurement from China. The whole industrial chain of Russia needs everything, also another important business opportunity for Hong Kong enterprises. Although the difficulties in Hong Kong are much greater than those in inland China, I am optimistic and believe there is in other way to work out. After all, we have been doing business with Europe for more than 100 years, and Russia's foreign trade is also concentrated in Europe. It is easy to achieve mutual trust when our business philosophy and business rules are much the same as those of Europe and the United States.While it's not easy to change the structure and direction of your business, you always have to change it in the changing pattern of this centennial history.

Lu Min, General Manager,
Asia Pacific Region of Bühler (China)
Machinery Manufacturing Co., Ltd.

It is an issue of industrial transfer. Bühler has some countermeasures in this regard. Judging from the global economic development in the past 20 years, the industrial transfer has always been taking place. From my personal observation of the global die-casting industry, especially in the Asia-Pacific region, in fact, China's die casting industry has reached a very high height in the world.We may not be able to reach the top in some aspects, but the high-end part of the die-casting industry is very close to foreign advanced levels, not only in scale, technology or quality, especially in the area of scale and quality. These years have seen very rapid development, especially in the recent five or six years. I once communicated with a senior executive of Hartman, who said that the same company works in Germany and then produces the same products in China, and obviously the company's customers have higher requirements for the parts in China than those in Germany. Therefore, it can be seen from another perspective that the improvement of technology and quality of our Chinese industry is very fast.We don't need to worry too much about the industrial transfer.The former low-end industries of Europe have moved to China. Now the low-end is moving to Southeast Asia or South America, or Turkey, or even to the Indo-Pakistan region. China is the largest car market, I don't need to worry too much. If you want to move the whole industry, or really want to do the industry, it is very important to be close to the industrial chain. On the contrary, in the past decade, China has established a whole and truly high-end industrial chain.So the advantages of China's die-casting industry will continue to grow. Not only does China have the market, but has established a talent mechanism and technology mechanism in the Chinese market.