As the international iron ore and other raw material prices rise, auto parts companies and auto parts market be affected, since March last year from the year, the auto parts prices as high as three times.

It is understood that for the average vehicle manufacturers, vehicle spare parts procurement costs account for an average of 70-80 percent, as costs continue to rise, the pressure on parts and components enterprises beginning to show. Is the most important vehicle manufacturing enterprises in the face of rising costs of the case, squeezing the profits of parts and components production costs of enterprises.

It is noted that as the prices of raw materials, the cost of third-tier suppliers in the rate of increase about 80 percent, gears, axle and other two providers of procurement costs were up 8.7 percent, 26.6 percent, driven enterprises bridge the procurement costs An increase of 10.7 percent, the suspension bridge supplier purchasing costs increased by 13%.

Although the rising costs of spare parts for profit after-sales service market downturn, but its profits are still impressive. An industry that, in general, with the size of vehicle production, and Guochanhualv the increase, the price of motor vehicles parts and components to 10 percent per year should be gradually lowered the rate. But in fact, the current car manufacturers it is very difficult to do so. Car service in the domestic market, the replacement of full-price car parts for vehicle sales total contract price doubled. Therefore, under the present circumstances, there is still large parts of profits space.

At the same time, I was informed that the current market prices is the most frequent automobile tires. Early this year, most tire companies began a large-scale collective price adjustment. Michelin from February 1, the United States and Mexico increased the engineering tire and industrial tire prices, the average rate of price increases of 3%. Bridgestone effect since March under the brand cars and tyres card prices, price increases range from 3 to 5 percent.