23.09.2022 15:11 Last Update: 23.09.2022 15:19
News Source: Mehmet Ali Kantarci
It is predicted that the automotive spare parts industry will gain more and more importance in parallel with the trends, especially electrification, and it will undergo a change in the same way. Since the use and production of internal combustion engines will continue for a while and the transition to complete electrification will take a process, the supply of parts, especially for internal combustion vehicles, will continue.
On the one hand, there will be a new market and part needs for electric and fuel cell vehicles that will be introduced gradually. At this point, industry officials stated that while manufacturers and suppliers who can keep up with the transformation will remain in the race, those who cannot adapt will gradually lose their mobility.
The sector is hopeful for 2023
Officials, who stated that their predictions for 2023 will be a difficult year globally due to economic difficulties, said, “However, we continue to work on solutions that can compensate for the possible decrease in demand that may occur especially in Europe.” Pointing out that the valve production capacity utilization rates have increased in the first half of 2022 compared to the previous year, the officials stated:
“We foresee that the total capacity utilization rate will be around 70 percent by the end of the year. We think that the slowdown in the European and world economy may create a pressure factor especially in the second half of the year. Rising production costs from raw materials and energy are currently affecting all manufacturers globally. In addition, it is a question mark how the effects of the energy supply-demand imbalance that will be experienced in Europe in the coming period will create a result. Considering rising energy costs and supply disruptions from Russia, a possible recession risk in Europe seems likely.”
Production costs are on the rise
Pointing out that the increase in production costs is negative in valve pricing, which is a sub-industry product, as in all products, the officials said, “Our dependency on raw materials is one of our biggest risks. The reflection of this increasing cost pressure in the sub-industry to the part prices will also cause an increase in automobile prices.
The process of combating the coronavirus has also significantly disrupted the supply chain management of the industry. The problems experienced in the supply of semiconductors and the effects of the recent Russia-Ukraine war seriously affected the capacity utilization rates of the manufacturers in the sector. As a result of this, supply-demand imbalance caused by production constraints emerges as an important problem both in our country and in the world. The predictions in the sector are that these problems may continue until the end of next year, albeit lesseningly.