Impact of COVID-19 and Russia-Ukraine conflict on auto parts factories

Date:2022-03-11   Click:910   Source:Aaron

On March 2, DPA reported that the situation in Russia and Ukraine has affected the automobile supply chain, and many car companies announced to suspend some production.
The impact of the conflict between Russia and Ukraine on the automobile industry is in two points. On the one hand, the situation in Russia and Ukraine affects the supply of automobile chips, metal materials, and parts, etc., and the cost of the industrial chain may rise; Parts are manufactured or affected.
Under the influence of comprehensive factors such as the epidemic and geopolitics, global commodity prices continued to rise, and the prices of important raw materials for automobile production, such as aluminum, magnesium, lithium, steel, oil, rubber, and chips, continued to rise. Since February, some OEMs have officially announced price increases. The market is worried that the pressure on the supply side will eventually be transmitted to the demand side. The recent correction in the automotive sector has been relatively large. We believe that the price trend of raw materials is difficult to predict in the short term.
In this case, the advantages of Chinese auto parts manufacturers are obvious. Thanks to the control of the new crown epidemic by the Chinese government, the domestic situation in China is calm and stable, and the prices of various raw materials are relatively stable. Relying on strong transportation capacity, Chinese products are the best choice at present. Made in China has accumulated enough experience. Manufacturing has gone to the world, high quality and low price top service, let more people recognize.

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