Machine tool industry to environmental protection and efficient development

In April, the production and sales data of China's auto market was nearing the start of the day. The data showed that in April 2013, the auto production and sales completed 1,899,400 and 1,841,700 vehicles, respectively, which fell by 8.9% and 9.5% respectively. It is estimated that by 2015, China’s six major vehicle manufacturers, FAW, SAIC, Dongfeng, Chang’an, GAC, and BAIC, will have a total production and sales target of more than 28 million, and the total production and sales targets of Chery, Geely, BYD, Great Wall, Brilliance and Jianghuai’s six self-owned brands. It will also reach 12 million vehicles, and the annual sales volume of 40 million vehicles will exceed twice the current sales volume. The huge automobile market will inevitably stimulate the development of the related spare parts machine tool industry. According to the “2012 Global Automobile Industry Senior Executives Survey Report” published by KPMG, China’s auto spare capacity has reached 6 million units in 2011, and it is estimated that by 2016, Idle capacity will also increase to 9 million vehicles. By then, the competition in China's passenger vehicle market will be fierce and the companies will face the survival of the fittest, while large-scale mergers and reorganizations and market adjustments will emerge.

Machine tools are the technological means of automobile production. The level of manufacture and quality of automobiles depends largely on the level of precision of the mold and the machine tool. The automotive and parts industry is the largest and most important user of the metal cutting machine tool and mold manufacturing industry. In terms of automotive parts processing, China's CNC lathes and vertical machining centers can basically meet the needs of auto parts mold manufacturing.

According to statistics, China's automobile industry is currently the mainstay of machine tool consumption. Machine tools account for about two-thirds of the total investment in fixed assets of automobile manufacturers. Among them, the demand for machine parts for automotive parts processing is about ten times larger than that for vehicle manufacturers, which accounts for approximately 70% of industry machine tool demand. Three years later, due to the large number of idle production capacity and large-scale mergers and reorganizations in China's auto industry, the demand for machine tools in China's auto processing industry will gradually decline, and its demand for machine tools will also be more environmentally friendly and efficient.