China has now become the world's manufacturing center for automotive aluminum wheels. Currently, the main export market is the retail market. However, in recent years, many foreign original equipment manufacturers have begun to directly purchase automotive aluminum wheels from China. The reasons are as follows:
In the cost structure of domestic automotive aluminum wheels, raw materials account for approximately 55% to 60% of the total cost, while labor costs make up 4% to 5%. In the cost structure of similar products produced by developed countries abroad, raw material costs account for about 50%, and labor costs account for approximately 15% to 20%. The significant difference in labor costs is an important part of the competitive advantage of the domestic automotive aluminum wheel industry. To control costs, international automotive giants have begun to turn to China to purchase automotive aluminum wheels with price advantages or to establish joint ventures. Japanese manufacturers all have joint venture factories in China.
Another major advantage of China is its abundant upstream resources and a large number of alumina producers, with fierce competition in alumina prices. After private alumina producers broke the monopoly of Chinalco, they have flourished everywhere. For the aluminum wheel industry, raw material costs are the most crucial, and Chinese manufacturers have an advantage in this regard.
Thirdly, since 2004, China's automotive industry has witnessed an extremely rapid growth. By 2009, despite the global financial crisis and the shrinking sales of automobiles in various countries, China's annual production and sales of automobiles both exceeded 13 million units, making it the world's leading producer and seller. In 2010, China's automotive industry developed even more rapidly. The production and sales volume in the first three quarters alone had already surpassed 13 million units, approaching the level of the entire year of 2009. Experts predict that the production and sales volume of automobiles in China in 2010 will approach the historical peak of 17 million units. The rapid development of the automotive industry has naturally driven the growth of the aluminum wheel hub industry, forming an inseparable "唇寒齿亡" survival model.
Note: The phrase "唇寒齿亡" is a Chinese idiom that literally means "when lips are cold, teeth feel the chill", which is used to describe a situation where two things are closely related and the decline of one affects the other. However, this idiom doesn't have a direct equivalent in English, so it's translated as "inseparable" to convey the meaning of the close relationship between the two industries.
Regional Distribution of China's Aluminum Wheel Hub Industry:
At present, there are over 160 aluminum wheel hub enterprises in China, mainly distributed in Shandong, Hebei, Jiangsu, Zhejiang, Yunnan, Jilin, Henan, Guangdong and other places.
The booming automotive industry has spurred numerous cities and enterprises to launch aluminum wheel hub projects. In cities such as Baotou, Chongqing, Xining, Luoyang, Fushun, Zunhua, Guangyuan, Yuncheng, Kangping, Tongliao, Baise, Shenyang, Jiamusi, Pei County, Baiyin, Xuzhou, and Wenchuan, there are million-level aluminum wheel hub projects either in preparation or under construction.
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