Over 50% of Parts Suppliers Will Profit Below 5% in 2009

The survey results published by the consulting company AlixPartners on April 16 show that by 2009, more than 50% of the suppliers expect the net profit margin to be less than 5%; and in the 2008 survey, none of the respondents expected that between 2008 and 2010. Net profit will be less than 5%.

AlixPartners collected data through in-depth interviews with senior executives of 40 state-owned, private and multinational auto parts companies in China. AlixPartners' similar survey a year ago showed that 55% of respondents stated that they expected to have more than 20% growth in operating income between 2008 and 2010, and that the profit margin was healthy, which is in stark contrast to the current results. More than 20% of the suppliers in this year's survey stated that they had a net loss in 2008.

The total sales revenue of the Chinese auto parts industry in 2008 amounted to RMB 828 billion, of which 23% came from exports. One-quarter of total export revenue comes from the United States, but the related amount in 2008 decreased by 10% year-on-year. 60% of parts and components companies respondents believe that “the decline in export demand” is the most important challenge in the future.

Convenient folding for long battery life.

Electric scooter

fold

Jiangsu Anywhere Mobility LTD. , https://www.annelectricscooter.com