German media: Auto parts from China are taking over the German market
According to the German newspaper "Handelsblatt": Chinese auto parts suppliers are making a big entry into the European market. These parts are low-priced but their quality is constantly improving. Union representatives and industry insiders have warned that Chinese manufacturers are flooding the German market with low-price parts, which is exacerbating the crisis in the German auto parts industry. The industry has called for countermeasures.
Currently, the auto parts industry is facing pressure from weak demand and the transition to electrification. Imports from China have intensified the crisis. According to employee representatives, this import wave mainly involves electrical systems and forged metal parts. Large suppliers such as Bosch, Mahle, and PWO are particularly affected by the competition. Industry insiders say that Chinese manufacturers have caught up in industrial capacity, and the quality gap is narrowing.
The chairman of the PWO full-time representative committee, Andreas Bohnert, said: "Chinese parts are flooding the German market at an incredible speed - and the quality level is quite good."
China used to be the most important driver of growth for German car manufacturers, but now it has become an unavoidable competitor not only for car manufacturers, but also for parts suppliers. Since the pandemic, the import volume of Chinese cars and parts has significantly increased - driven by industry giants such as BYD and CATL, who dominate in electric vehicles and batteries.
For many suppliers, the impact is evident: declining profit margins and reduced orders. According to insiders, some companies have started to reduce capacity and lay off employees.
New data confirms these concerns: according to the analysis of the German Economic Institute (IW), the import of Chinese auto parts has recently increased significantly. In particular, the import of internal combustion engine transmission components has tripled.
A survey by the European Association of Automotive Suppliers CLEPA found that nearly 70% of companies are now facing direct competition from China - an increase of 12 percentage points compared to this spring.
Most companies expect their profits to fall below the 5% threshold required for investment. Companies may be forced to move production overseas or even close factories completely.
CLEPA Secretary General Benjamin Krieger warned: "If decisive measures are not taken, the European parts manufacturing industry could disappear."
At Mahle, employee representatives have also warned about new competitive pressures: the president of the union, Boris Schwürz, said that some Chinese offers are "clearly below the cost of production." Chinese competitors are entering product areas long considered to be Germany's advantage. Even German car manufacturers such as Volkswagen, BMW, and Mercedes-Benz are increasingly using Chinese parts.
Bosch union representative Frank Sell said that the prices of Chinese suppliers are now 20% to 30% lower. He suggested that Europe should consider requiring foreign manufacturers to produce a certain proportion of products in the region to protect local suppliers.
Original: www.toutiao.com/article/1850182025962504/
Statement: This article represents the views of the author himself.