The China automobile industry after a couple of years of slump is now witnessing an unprecedented growth, all in a span of two years. In 2008, amid recession, the automobile manufacturers had to cut down production, adopt cost-cutting measures, lower costs and do lay-offs in order to cope with the decline in automobile sales. Post recession, around mid-2009, the industry started witnessing growth and this year it is back on track and is growing with a huge demand for automobiles from the domestic as well as international markets.
China Auto Parts Manufacturers Wary Of Investing After Recession
The reason automobile companies put for this is that they are not getting enough supply from China automobile parts manufacturers and hence the production has to be slowed down. According to experts from the industry, the parts manufacturers have invested half of what they should invest to meet the demand from Original Equipment Manufacturers (OEMs) and they are not ready to invest more in technology and increase the existing capacity of parts production.
On the other hand, the Auto Spare Parts from China manufacturers have a different story to tell. They are apprehensive in investing after being caught off guard in the aftermath of global meltdown in 2008 during which they suffered losses due to decline in sales. They are also vocal of not getting any intimation from automobile companies to decrease the production of automobile parts due to decline in sales.
China auto parts manufacturers have captured the fancies of international car manufacturers as well. Established auto giants like Volkswagen and General Motors have shown active interest in doing business with Korean manufacturers, for their upcoming models. This has paved the way for export fairs to be held with a handful of such prominent names that have shown the eagerness to get associated with auto components manufactured in China.
Even a country that is extremely obsessed with quality such as Japan has shown interest in importing automotive parts from China. Japanese are famous for being extremely particular about what they use in their products. The very fact that they are looking to get associated with Korean counterparts is a valid certification of the quality of automobile parts manufactured in Korea.
Profit Big on Auto Parts
Before the internet age the auto parts industry had been primarily occupied by the big conglomerates such as NAPA, Checker and a few others but thanks to the internet this is changing. Today anyone who has an access to the internet has the opportunity to unlimited potential, and better yet creates it from the comfort of their home. According to eBay motors 4.5 billion dollars worth of automotive related items are sold annually making it the most profitable sectors on eBay. The majority of sellers are ordinary people who buy and sell for a profit.
There are two different ways of profiting in this business. One is to open a brick-and-mortar place. The second way is to do it online. In this chapter we are going to skip the brick-and-mortar method as it takes tremendous capital investment, time and effort, and we will devote our energy to online strategy. The great part about running any online business is it allows you to be flexible; it operates 24-7, and gives you an access to global marketplace.