Analysis of China's automobile wiring harness industry chain in 2022: the demand for automobile wiring harness starts to rise
1、 Industrial chain
The automobile harness is the main body of the automobile circuit network. Without the harness, there would be no automobile circuit. The harness refers to the components connecting the circuit formed by bundling the contacts (connectors) made of copper and the wires and cables with plastic pressing insulators or external metal shells after crimping. The wire harness industry chain includes wire and cable, connector, processing equipment, wire harness manufacturing and downstream application industries. The wire harness is widely used in automobiles, household appliances, computers and communication equipment, various electronic instruments and meters, etc. The body wire harness connects the whole body, and its general shape is H-shaped.
The upstream of the automobile harness industry chain refers to the production of raw materials such as copper, rubber, wire and wire, the midstream refers to the production of automobile harnesses, and the downstream mainly refers to automobile manufacturers and some accessory suppliers.
2、 Upstream industry analysis
Copper and rubber are the main raw materials of automobile wire harness, so automobile wire harness is greatly affected by their output. In recent years, China's copper production has shown a rising trend, but its growth has slowed down. In 2021, China's copper production will grow by 3.8%, reaching 21.235 million tons.
As another important raw material for the production of automobile wire harness, rubber is mostly imported in China. The output of rubber in China is relatively stable. Except for 693000 tons in the epidemic year 2020, the output in the remaining years remains above 800000 tons; The import volume is far higher than its output, but in recent years, China's rubber import volume has shown a downward trend. In 2021, China's rubber import volume will be 2.19 million tons.
3、 Analysis of midstream industry
In recent years, the market size of automobile wire harness has shown a trend of declining first and then rising, because the performance of China's automobile industry in the past few years has been sluggish, resulting in reduced demand for automobile wire harness. However, in 2021, the size of the automobile wire harness market began to expand. In 2021, the size of the automobile wire harness market was 52.16 billion yuan, with a growth rate of 3.4%, reversing the negative growth of the previous years.
From the perspective of industry competition pattern, the wire harness industry is dominated by foreign enterprises in Japan, South Korea, Europe and the United States. Relevant data shows that in 2021, the top four automotive wire harness enterprises in the world will account for 77%, respectively Yazaki, Sumitomo, Ambofu and Lenny, with market shares of 30%, 24%, 17% and 6% respectively.
At present, the market share of domestic automobile wire harness enterprises is generally low, and domestic wire harness enterprises are dominated by Huguang and Yongding. In recent years, local enterprises have continued to expand the market, and the market share is gradually increasing. From the perspective of the business income of the two enterprises from 2020 to 2021, the business income of the two enterprises has increased. In 2021, the business income of the automobile wiring harness of Huguang Shares will reach 2.31 billion yuan, an increase of 61.7%; In 2021, the operating revenue of Yongding Automobile Wire Harness will reach 1.282 billion yuan, with an increase rate of 14.3%. In the future, with the continuous improvement of local enterprises' technology, there will be broad development space.
In 2021, the gross profit margin of the automobile harness business of both companies will be at a low level. In 2021, the gross profit margin of automobile harness business of Yongding Co., Ltd. will change from negative to positive, 6.37%; In 2021, the gross profit margin of the automotive wiring harness business of Hu Guang Co., Ltd. will be 9.29%, and there is still much room for improvement.
4、 Downstream industry analysis
The sales volume of automobiles will directly affect the demand for automobile wire harnesses. From 2017 to 2021, the total sales volume of automobiles in China will continue to decrease, from 28.879 million in 2017 to 23.489 million in 2021. However, with the development of China's new energy vehicle industry, the sales volume of new energy vehicles in China has been rising. Although new energy vehicles have made new requirements for vehicle harnesses, they have also brought new demands.