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The warming of the automotive industry contributes to the growth of demand for plastics

source:[Gravimetric blender]   release time:2021-04-23 08:50:11

The automobile industry is one of the key areas of plastic application. According to relevant statistics, the consumption of automobile plastics accounts for about 10% of the total consumption of plastics, that is, about 40 million tons of plastics are used in automobiles every year. Whether it is exterior decorative parts, interior decorative parts, or functional and structural parts, the shadow of plastic parts can be seen everywhere. The application feature of exterior trim is to replace steel with plastic to reduce the weight of the car. The main components include bumpers, fenders, wheel covers, deflectors, etc.; the main components of interior trim include dashboards, door inner panels, and auxiliary instruments Plates, glove box covers, seats, rear guards, etc.; functional and structural parts mainly include fuel tanks, radiator water chambers, air filter covers, fan blades, etc.
Due to molding needs, injection molding machines, extruders, and hollow machines are also widely used in the automotive industry, especially injection molding machines. For some injection molding machine manufacturers, more than 50% of their sales come from the automotive industry.
Automobile sales are directly related to the heating and cooling of plastics and plastic machinery. The industrial policy of the automobile industry has also become a key focus of the plastics industry practitioners.

Benefit from the good control of my country's new crown epidemic, from my country's continuous industrial support policy for new energy vehicles, and from my country's stimulation of internal demand.

Since April this year, plastic companies, including plastic machinery companies, have generally ushered in a sustained and significant increase in orders. According to Jufeng Plastics Media, the order delivery period of many plastic companies is scheduled to March and April next year, and some companies are scheduled to June and July next year. This is completely positively related to the continuous recovery of the production and sales situation of my country's auto industry since April.

The automotive industry continues to pick up
According to data from the National Bureau of Statistics, the industrial added value of the automobile manufacturing industry in April increased by 5.8% year-on-year, which was significantly higher than the previous month and the same period. Since this month, my country's automobile production and sales have started a continuous growth model.

From January to September, my country's automobile production and sales completed 16.957 million and 17.116 million respectively, down 6.7% and 6.9% year-on-year, respectively. The decline continued to narrow by 2.9 and 2.8 percentage points from January to August.

In September, the automobile market entered the traditional peak season, with production and sales exceeding 2.5 million vehicles, setting a new high for the year, with a month-on-month increase of 19.1% and 17.4%, and a year-on-year increase of 14.1% and 12.8%. As of September, automobile production and sales have shown growth for six consecutive months, and sales have maintained a growth rate of more than 10% for five consecutive months.
The prosperity of the new energy automobile industry chain continues to rise

 In addition, according to statistics, from January to October, the production and sales of new energy vehicles were 914,000 and 901,000, down 9.2% and 7.1% year-on-year respectively, and the decline was significantly narrower by 9.5 and 10.6 percentage points from January to September. Among them, the production and sales of pure electric vehicles were 719 thousand, a year-on-year decrease of 12.2% and 6.9% respectively; the production and sales of plug-in hybrid electric vehicles were 195,000 and 181,000 respectively, with output increasing by 4.6% year-on-year, and sales volume down by 7.4% year-on-year; The production and sales of battery vehicles were 647 and 658, a year-on-year decrease of 53.5% and 50.4% respectively. It can be seen that among the main types of new energy vehicles, the decline in the production and sales of pure electric vehicles has significantly narrowed compared with January-September; the output of plug-in hybrid vehicles has ended its decline and has begun to show a slight increase.
In order to promote the development of new energy vehicles, my country has implemented new energy vehicle subsidies and tax-free preferential support policies. With the continuous development of the government, auto companies and related industry chain companies, my country’s new energy vehicle industry has reached the world’s forefront level, and my country also has The world's largest new energy vehicle market. At present, in the context of the economic strategy of promoting domestic large-scale recycling, the state has increased the promotion of the new energy automobile industry.
This year, the Ministry of Finance clearly stated in the "Report on the Implementation of China's Fiscal Policy in the First Half of 2020" to support energy security, support the development of new energy vehicles, support the increase in domestic oil and gas production, and promote the development of renewable energy. The Ministry of Finance issued the 2021 annual subsidy ahead of schedule, which will play an important role in stabilizing the economy, promoting growth, and promoting the development of new energy vehicles to a new level.
It is estimated that China's new energy vehicle sales in 2020 will be approximately 1.16 million; by 2025, the sales of new energy vehicles will reach approximately 5.42 million. In terms of product structure, the share of pure electric vehicles in the new energy vehicle market will increase from 80.3% in 2020 to 90.9% in 2025.
The performance of A-share listed companies in the automotive industry has turned from decline to rise
In the automotive industry, 185 listed companies achieved a total revenue of 1,856.6 billion yuan in the first three quarters, a year-on-year increase of 4.883 billion yuan. Although the increase was only 0.26%, compared with the 9.23% decline in the mid-term, it has turned from a decline to an increase and successfully turned over. The auto market is picking up faster.

Listed companies in the automotive industry, including companies that provide complete autos, auto parts, and value-added services such as sales, after-sales, and beauty.

On December 3, Ye Shengji, chief engineer and deputy secretary-general of the China Association of Automobile Manufacturers, stated at the World Smart Car Conference that the situation of the auto industry this year has been ups and downs, and has fallen sharply after nearly four months. But overall, China's auto industry has basically remained relatively stable. This year's automobile production and sales are expected to reach the level of last year, of which the production and sales of new energy vehicles are expected to reach or even exceed the level of last year.
Automotive plastics are becoming the new darling of the plastics industry
In the global context of replacing steel with plastic, automotive plastics are becoming the new darling of the plasticizing industry. It is well known that global warming causes environmental problems. 14.3% of the global greenhouse gas comes from the automobile industry, reducing carbon emissions, green travel and technical environmental protection have become the mainstream trends in the development of a low-carbon economy in recent years. It should be known that reducing the weight of a car is one of the most effective measures to reduce vehicle emissions. For every 10% reduction in the weight of a car, fuel consumption can be reduced by 6%-8%, and carbon dioxide emissions can be reduced by 5%-6%. Major auto companies' emphasis on lightweight vehicles and the deployment of new energy vehicles are also the only way to achieve energy conservation and emission reduction.
It can be seen that the prospects for plastics for automobiles in the future are quite broad. Automotive plastics have many advantages that traditional materials do not have in the past, mainly in light weight, good appearance and decoration effects, multiple practical application functions, good physical and chemical properties, easy processing and molding, energy saving, sustainable use, etc. aspect.
Common automotive plastics and their application parts
The future development trend of the automotive plastics market
With technological innovation and the promotion of strict regulations, especially in terms of fuel efficiency, the automotive industry has also increased the requirements for automotive plastic parts. Research on automotive lightweight technology has made the application of composite materials and innovative materials mature .

As far as the current use of automotive plastics is concerned, it is far from saturated. For example, plastic bumpers alone accounted for about 42% of total automotive plastic consumption, and the use of plastic front-end frames has only become popular in recent years. So far, there is no relevant testing standard established in China. This shows that the goal of diversified development is still far Not realized. While foreign automobile trim parts have basically realized plasticization, the application of plastics in automobiles is also expanding from trim parts to exterior trim parts, body panels and structural parts. In addition to light weight, the use of plastic can also enable car companies to reduce production costs, promote modular assembly practices, and improve the aerodynamic performance of the car's exterior.

According to the research of Global Market Insight, the main development trends of the automotive plastics market within five years are predicted as follows:

01 | The demand for polypropylene (PP) will increase.

It is procured for automotive interiors and exteriors, and applications under the hood, often replacing metal parts. In order to neutralize battery weight, PP will surge with the surge in electric vehicle (EV) production.

02 | Polyethylene (PE) consumption may remain stagnant.

Although high-density polyethylene continues to replace steel in gas tanks, the new trend affecting polyethylene demand is the surge in electric vehicles.

03 | Although the consumption of ABS may be hit with the increase in the use of PP composite materials, some high-end cars will still have demand for it due to its recognized quality in automotive interiors.

04 | Polycarbonate (PC) is setting a new standard for the lighting and electrification of self-driving cars and traditional cars.
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In addition, PC also has excellent impact resistance, heat resistance, electrical properties and weather resistance. The combination of toughness, hardness and stiffness will promote the application of PC in the automotive plastics industry.

05 | PVC is attractive due to its enhanced flame retardancy, excellent flexibility, low (free) lead content and high gloss.

PVC can be molded, injection molded and blow molded to form a series of products. Therefore, the demand for PVC for automotive dashboards and doors is expected to grow to 2024.
06 | North America and Europe will continue to attract investors to enter the automotive plastics market, and polymer consumption in this industry will experience greater growth.
Automotive plastics help auto companies meet the corporate average fuel economy (CAFE) standards and better cater to market trends and consumer buying habits. It is expected that passenger cars and public transportation vehicles will continue to use polymer technology. PE and PVC stand out from the growing call for recyclability, and the demand for PC and PP will continue to grow. In the next five years or even longer, the automotive plastics market will experience a significant change.
In the future, the development focus of automotive plastics is to develop reinforced composite materials and high-performance resin materials for structural parts, exterior parts, and attach great importance to the recyclability of materials. Although automotive plastics recycling is still a global issue, automotive Plasticization has become an inevitable trend in the development of automobiles.[Gravimetric blender]