China's auto logistics market is pregnant with more and more business opportunities. From May 19th to 20th, the Automotive Logistics Asia Conference was held quietly at the Shangri-La Hotel, Pudong, Shanghai, which was also the first time that a world-class automotive industry logistics conference was held in China. Including the global logistics and auto industry leaders such as Vioxx Global, TNT, Midea Logistics, Global Cargo, Audi, Ford, Volkswagen, and Delphi attended the conference. “Auto Logistics” magazine editor Alexis Nolan said that as auto manufacturers shift from saturated European and American markets to the Chinese market, their suppliers will also be transferred. At the same time, China will become a global automotive production and supply base. The trend makes China's auto logistics market not to be ignored. Analysts said that the rapidly growing demand for China's auto market, increasingly fierce price competition, and the prospects for future exports have attracted the attention of more and more automotive logistics companies. Strong market demand "In the near future, this market will bring us a lot of business." Johnson, vice president of Vioxx Global Freight, told reporters that auto logistics is one of the company's two major businesses in China. As a leader in the automotive logistics industry, global automotive-related manufacturers such as General Motors, Volvo, Delphi, and Daimler-Chrysler are customers of Vioxx Global, whose business covers the entire automotive logistics from upstream to downstream. Including vehicle and parts distribution. Like other multinational logistics giants, with the in-depth development of its customers in the Chinese market, the business of China Business Group in China has also grown rapidly. In the past five years, its operating income has grown by more than 400%. Alixis Nolan said that in 2003 China’s auto market surpassed Germany as the third largest market in the world, and sales of cars doubled to reach 2 million units, and in 2007 it is expected to reach 3.5 million. The industry had predicted that by 2005 China's auto production will reach 6 million to 7 million vehicles. “At present, the number of cars owned by every 1,000 people in China is 5.2, and the average number in Asia as a whole is 286.” Zhang Xuelu, Vice President of Marketing and Marketing for Asia Pacific, Wan Luo Global, said that the figure is 540 in 2008 in Germany. China will increase to 10.8. The German BLG Logistics, which has long provided logistics services for Mercedes-Benz and Volkswagen, also stated that with the establishment of Mercedes-Benz's production bases in Beijing and Fuzhou, the demand for automotive parts and complete vehicle logistics in mainland China is increasing. Cost pressures have exacerbated the relative lucrative profits of the auto industry and the attractive prospects they have displayed, and have attracted numerous domestic and foreign manufacturers into the market. As industry competition begins to intensify, the need to reduce production costs becomes more and more urgent. "The car prices will continue to fall. This will certainly bring great opportunities for logistics companies," said Johnson. According to the data, in accordance with the sales scale of auto parts and accessories, in 2002, the cost of spare parts after-sales service for major auto parts factories in China reached nearly 200 million yuan. In terms of costs, the proportion of logistics costs of European and American auto manufacturers to sales accounts for about 8%, and Japanese auto makers can even reach 5%, while the number of Chinese auto manufacturers is generally above 15%. The reduction in automobile costs will bring considerable business space to the logistics industry. Exporters are tempting: “We are not only interested in the profit margin that automobiles bring to other industries,” James K. Commoskey, vice president of global automotive solutions at Vioxx Global, told reporters, “We are more interested in the future exports of the Chinese automotive industry. "This is the opportunity." This is also the biggest interest of all multinational giants with global logistics networks. The chairman of the Board of Directors of BLG Logistics, Dre Hold Aton, said that although China currently imports a large amount of automotive parts from Europe, the strength of China's spare parts suppliers is strengthening and it will become the main supplier of the international automobile market in the future. Has become a trend. The auto expert and academician Guo Konghui of the Chinese Academy of Engineering once stated that China may become the next destination for the global automotive industry. In 2003, China’s total exports of automobiles and its components reached US$4.71 billion, an increase of 34.4% year-on-year. Among them, automobiles (including spare parts) exported 400 million U.S. dollars, exported 4.13 billion U.S. dollars worth of parts and components, and exported more than 100 countries and regions. In January-February this year, China exported 870 million U.S. dollars in auto parts and components, an increase of 39.9% year-on-year. It is expected by the industry that in 2010 China's auto parts exports will reach more than 40% of its total sales. Source: International Finance News

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