The benefits continue! Tires may sell well in the second half of the year

Recently, the F6 Big Data Research Institute released the May 2022 Automotive Aftermarket Report.

Data show that in May, the year-on-year decline in output value narrowed, with a month-on-month increase of 8%.

The output value of various services declined year-on-year. Except for high-quality products, the output value of other types of services decreased year-on-year.

In the past three months, except for batteries, the monthly sales of oil, tires and air-conditioning filters were all lower than the same period last year, but the year-on-year decline in May has narrowed.

Compared with the same period last year, Shanghai and Qinghai Provinces saw a larger decline in engine oil sales, followed by Beijing. Sales in the three provinces and cities all fell by more than 50%, while Jilin Province and Fujian Province increased by 5.7% and 8.8% respectively.

Compared with the same period last year, the number of cars entering factories in May had a negative growth. Among them, Changan, Ford, Volkswagen, Mazda and other brands entered factories fell by more than 20%.

The number of new energy vehicles entering the factory increased year-on-year in May. Among them, the number of new energy vehicles entering the factory such as Leapmotor, GAC Aian, and Xiaopeng increased by more than 100% year-on-year.

Here Xiaobang believes that there are signs of recovery in the automotive aftermarket.

The reason why the automobile aftermarket is showing signs of recovery is mainly due to the higher risk of tire accidents such as puncture after entering the summer, and the high vacancy rate of automobiles due to epidemic control. After the epidemic is under control, some car owners hope to take advantage of promotions and maintenance. Vehicles that have not been moved for a long time, and changing tires that have not been used for a long time.

In addition to the recovery of market demand, the decline of production and sales costs in all aspects of the automotive aftermarket is also on the way.

First, raw material prices have stabilized. In terms of tires: Although the prices of natural rubber and carbon black are still at a high level, neither of them has the momentum of bullishness.

Lubricants: Although crude oil was quoted at US$115.60/barrel as of May 31, Brent crude oil futures were up 3.18% from US$112.04/barrel in mid-May, and up 7.78% from US$107.26/barrel in the same period last month. It is still in an upward trend for the time being, but as international relations become increasingly stable, it is believed that it will soon fall back to the normal price.

Second, the drop in shipping prices is good news for the import of lubricants and tires. As of the end of May, the container freight indices from China to the western United States, the eastern United States and European ports were 12,512 US dollars/FEU, 15,982 US dollars/FEU and 10,565 US dollars/FEU (FEU refers to a container with a length of 40 feet as an international unit of measurement).

Now many directions are on the way to pick up, the auto market has bottomed out, the dark time has passed, and the market in the second half of the year will be full of hope.

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