1. Demand for automotive filters is on the rise

2. Fierce competition in the automotive filter market

The huge filter market has attracted the attention of many manufacturers, and the joining of domestic and foreign companies has resulted in increasingly fierce competition in the current filter industry. There are more than 1,000 existing filter manufacturers in China. Due to the variety and structure of automotive filter products, it is not only suitable for large-scale production with a high degree of automation, but also small-batch workshop style with manual operation. Therefore, most of the production enterprises are small in scale. There are more than 30 large and medium-sized enterprises, and there is no monopolistic super-large enterprise in the industry.

The fierce competition in the filter market is mainly in the after-sales market for the following two reasons: First, the filter is a vulnerable part of the car and needs to be replaced regularly. Therefore, the sales in the after-sales market are very large, which directly leads to The number of filter companies competing for the after-sales market is far more than that of the supporting market. Second, my country’s automotive filter industry has many manufacturers, and they are generally small in scale. Most of them are hand-workshop-style automotive filter companies with incomplete production conditions, backward testing methods, and smaller scales. Can not meet the requirements of supporting, so it can only compete in the aftermarket. The fierce competition among enterprises has resulted in low brand concentration in the filter after-sales market. The top 5 filter companies have a market share of only 15%. In the supporting market, the market share of the top 5 filter companies reached 40%.

3. In the era of low profit, filter companies move to the supporting market

Although the filter after-sales market is in great demand, as more and more companies enter this market, in fact, the filter after-sales market has entered an era of meager profit, and the profit margin is still shrinking. Coupled with the appreciation of the renminbi and the price increase of raw materials, various factors have made the already difficult companies even worse. How should filter companies break through?

Industry insiders say that filter companies must enter the supporting market if they want to stand out. Since the supporting market is very demanding, there are not many companies entering, so the competition is relatively good, and the profit margin is relatively high. However, foreign and joint venture brands have seized the market and almost monopolized the supporting market for high-end model filters. Therefore, it is particularly important to improve the technical strength of independent brands.

Fortunately, some domestic filter manufacturers with a certain scale have realized this and are striving to enter the supporting market. Although enterprises in the supporting market will face difficulties of one kind or another, this has become a trend.

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