Why is there no sign of price reduction for automobile plastic mold parts?

        There has been no sign of price reduction for automobile plastic mold parts. From the external objective conditions, the problem comes from the drop and rise of vehicle prices and raw material prices of the whole vehicle factory. It is understood that in order to ensure their own profits, vehicle manufacturers require suppliers to reduce the price by 8% to 10% every year.

In addition to the price reduction in the south of the whole vehicle factory, the price rise of raw materials is also one of the reasons why it is difficult to reduce the price of accessories. Of course, the main reason why it is difficult to reduce the price of accessories comes from the enterprise itself. As we all know, one of the magic weapons to reduce the cost of the parts industry is to form a batch economic scale. However, it is obvious that Chinese parts enterprises are scattered, chaotic and poor, and the segmented supporting market hinders the parts enterprises from becoming bigger and stronger. Whether it is raw material procurement, product process control, or the sales, circulation and service of finished products, China's auto parts enterprises have not formed a large-scale cost advantage; In addition, the product structure is unreasonable, many parts enterprises have serious excess production capacity, a large number of assets are idle, and the fixed cost increases.

In addition, because the development of new products cannot be developed, or because the development of new products is restricted by capital, technology and other aspects, China's auto parts enterprises cannot form mass production capacity. On the other hand, China's auto parts industry is still a labor-intensive industry. Although China has rich cheap labor resources, the low management level offsets China's advantage of low labor cost.