The overall development of China’s brake pad industry

I. Domestic and international market scale

1、Domestic market scale

The growth of market demand for brake pads is closely related to the development of the automobile industry (automobile production and ownership determines the output of brake pads, and there is a strong positive correlation between it and brake pad production and sales), and the rapid development of China’s automobile industry will directly drive the simultaneous development of brake pad manufacturers. First of all, China currently has more than 300 automobile manufacturers and more than 600 automobile modification plants, with an annual output of about 18 million cars, and a large demand for brake pads, with a national annual demand of about 300 million sets of brake pads. 2010 domestic production, output value and sales revenue of friction and sealing materials achieved double-digit growth, with a total output (excluding semi-finished materials) of 875,600 tons, up 20.73% year-on-year. Total output (excluding semi-finished products) was 875,600 tons, up 20.73% year-on-year; total output value was 16.6 billion yuan, up 28.35% year-on-year; sales revenue was 16 billion yuan, up 30.25% year-on-year.

The rapid development of China’s automotive industry will directly drive the simultaneous development of brake pad manufacturers, and will affect the future market demand of automotive brake pads from both the perspective of brake pad stock and increment. In the stock market, as brake pads are consumable products, the frequency of renewal is fast, and the huge car ownership will stimulate the demand for brake pads in the domestic aftermarket; at the same time, in the incremental market, the production and sales trend makes brake pads still in great demand in the supporting market. Therefore, the international financial crisis led to a sustained downturn in the world economy on the brake pad industry has gradually disappeared, the signs of industry rebound has emerged, the brake pad industry is ushering in a great opportunity for development.

According to statistics, China’s friction materials production enterprises have more than 470, including more than 40 Sino-foreign joint ventures and wholly foreign-owned enterprises. Statistics show that in 2010, China’s friction materials industry annual output of 426,000 tons of friction material products, the total output value of 8.53 billion yuan, exports of 3.18 billion yuan, of which automotive friction materials accounted for about 80% of the total. China’s friction materials industry overall production technology level has been significantly improved, some leading enterprises have reached the international advanced level.

2, the international market size

According to the World Automobile Manufacturers Association (OICA) statistics, the world’s existing nearly 900 million car ownership, and is still increasing at the rate of 30 million per year, it is expected that by 2020, the global car ownership will reach 1.2 billion units.

According to the International Energy Agency (IEA) estimates, by 2020, the international automotive brake pad market demand will exceed $15 billion. With the rapid development of China’s auto industry and auto parts manufacturing industry, China will become an international processing center and an international purchasing place, and China’s auto brake pad manufacturers will win more market share in the international market.

2010 world brake pad main market country operation analysis

(1), the United States

In December 2010, the U.S. market car sales maintained a high growth rate since December 2009, reaching 7.73 million units, with the gradual recovery of the U.S. auto market, promoting the U.S. auto parts supporting the market scale, according to relevant data show that January to December 2010, the U.S. auto brake sales revenue of $6.5 billion, an increase of 21%.

(2), Japan

Japan is one of the world’s top ten auto parts supporting market, because Japan has advanced auto parts processing technology and strong market demand at home and abroad, January-December 2010 sales revenue of automotive brake pads reached $4.1 billion year-on-year growth of 13%, its main products for the export of automotive brake pads supporting use.

(3), Germany

According to the analysis of relevant authoritative data, Germany’s automobile production rose 18% year-on-year to 413,500 units in December 2010. The domestic automotive market tends to be mature, the German automotive brake pad technology has been very developed, the domestic production and sales of the situation to achieve two booming, 2010 automotive brake pad January to December to achieve sales revenue of 3.2 billion U.S. dollars, an increase of 8%.

Product segmentation

Brake pads are used in large quantities in the domestic aftermarket: 95% of brake pads in China are used in the aftermarket, with a quantity of about 95 million sets.

The proportion of domestic brake pads supporting the whole vehicle is low. At present, only 5% of the total annual sales of independent brands in the brake pad industry are used for domestic OEMs.

The number of brake pads supporting for the whole car is about 5 million sets.

At present, the international conventional friction materials are semi-metallic, low metal, ceramic, organic materials four categories, the development direction is to mature semi-metallic formulations, improve less metal formulations, the development of NAO formulations. However, at present, asbestos (the use of which was strictly prohibited by the state in 1999) brake pads in China still occupy a large proportion in some fields, especially in the heavy-duty vehicle brake pad market. Because asbestos fibers contain carcinogenic substances, several countries in the world have signed a union treaty to refuse the use of asbestos.

According to relevant information, in foreign markets, no asbestos, less metal, environmentally friendly friction materials (also known as NAO-type friction materials) more than ten years ago has begun to market promotion; some countries in Europe and the United States have been on the restriction of friction materials in harmful heavy metal components and copper content legislation. In the foreseeable future, the content of asbestos and heavy metal components in friction materials will become a friction material exports to Europe and the United States trade restrictions. Therefore, no noise, no ash and non-corrosive hub, long service life, comfortable braking and environmental protection, completely eliminate the asbestos brake pad products, is the right direction to follow the world development trend.

China’s automotive brake pad industry is facing two major transformations of environmental protection and high performance, environmentally friendly high-performance brake pads in addition to meet the high temperature recession, low wear rate, friction coefficient stability and other requirements, should also have a small vibration, low noise, ash and other environmentally friendly performance characteristics, these are the friction material formulation technology, raw material processing technology, mixed material preparation technology, hot pressing technology, heat treatment technology and follow-up Treatment technology and other higher requirements.

According to the China Friction and Seal Materials Association statistics, China’s automotive brake pad production enterprises have nearly 500 or so, but more than 80% of the enterprise scale is small. With the improvement of the overall level of China’s automotive industry, the automotive industry is gradually changing from focusing on the price of brake pads to focusing on the quality and technical content of brake pads, the concentration of the market will continue to improve, and eventually the formation of technical strength of the competition between enterprises.

As China’s automotive industry started late, the domestic production of high-grade models basically belong to Europe, the United States, Japan, South Korea and other countries, and automotive brake pads are critical safety components, brand-name automotive companies have very strict control over them. According to China Friction and Seal Materials Association statistics, 85% of the current domestic car brake pads are dependent on imports, the domestic automotive brake pad industry can compete in the market is mainly concentrated in commercial vehicle brake pads, low-end small car with brake pads and micro car brake pads market. However, due to the improvement of China’s auto parts manufacturing technology and the adjustment of industrial policies of developed countries and the influence of price factors, the international procurement chain is moving to China.

According to the data of National Bureau of Statistics, the market demand for brake pads in 2010 was about 2.5 billion yuan, accounting for about 25% of the overall brake pad market.

Third, the status of domestic enterprises, technology and product development trends and other information

At present, the production capacity and technical level of some domestic automotive friction enterprises are close to the world’s advanced level, and a number of leading enterprises are growing rapidly. Although the production capacity and technical level of China’s automotive friction enterprises have made great progress, but industry standards are quite backward, even with the requirements of domestic OEMs do not match. To clutch face plate temperature index, for example, the host plant requirements to 300 ℃, while the national standards provide for 200 ℃ is qualified. Due to various reasons, the revision of national standards did not really start until a few years ago.

Another noteworthy issue is that, for automotive friction companies, their independent research and development capabilities are mainly reflected in the research of composite material performance. Although the rapid development in recent years, but due to weak capital accumulation, domestic automotive friction enterprises on the production of transformation and independent research and development investment is far below the foreign counterparts. Industry standards lag behind, brake pad companies have limited investment in research and development, subject to a number of factors, the domestic brake pad industry and enterprises still have a long way to go.

Post time: Mar-07-2022