The China Airbag Systems Market is projected to grow with a CAGR of more than 5 % during the forecast period.
- Owing to the high demand of automobiles in the region, China is one of the largest markets for automobiles in the world. the presence of leading automobile manufacturers as well as the component manufacturers is driving the growth in the region.
- With the growing pollution levels around the world car makers are looking for light weight components for reducing the fuel consumption and curbing the emission of harmful pollutants into the atmosphere.
- However, the low availability of aluminum in the country and the high imports of the metal because of the growing demand of aluminum and related products can be a restraint.
- Because of the ongoing Covid-19 pandemic all around the world, the aluminum die casting industry is badly hurt because of the spread of virus. The lockdown imposed has forced all the players in the industry to shut down their operations and also has weakened the demand for automobiles in the country. The April-June quarter witnesses’ high negative rates in sales figures for the automobiles and the industry is expected to revive in second half of 2021.
Key Market Trends
Passenger Vehicle Sales Driving Growth
The market is well diverse with around 350 different models available for end users with different fuel types.
Die casters in china now focusing on sourcing for better technologies to improve and enhance the quality of the castings. Further, the country’s foundry industry is being recognized and endorsed by foreign enterprises resulting in a full swing development of foreign trade. All these factors together are expected to maintain a steady growth in the power train parts aluminum die casting market in China.
Pressure Die Casting Captures the Market
Owing to the advantages offered by the process of pressure die casting over other casting methods the players in the industry are investing to expand their operations in the country for fulfilling the demand of aluminum parts for automotive in the country.
Using the pressure die casting technique high volumes of parts can be produced with high accuracy over other process also the process is cost effective and less time consuming and other advantages and the demand in the country is enabling the major players in the country to invest heavily and expand their operations. For instance,
In February 2020, Midland Pressure Diecasting (MPD) completed a £250,000 investment drive by boosting its aluminum and zinc casting output via the purchase of automated machines and an additional new ‘Frech’ die casting machine.
The China Automotive Parts Aluminum Die Casting Market is fragmented, with many players accounting for a small market share. Some of the prominent companies in China Automotive Parts aluminum die casting Market are NEMAK, RYOBI Die Casting, KSPG AG, Interprex Holdings Ltd., ALCOA Inc. and others. The major players in the country are entering into strategic partnership with global leaders to gain considerable market share.
In June 2019, Alucast, which is one of the UK’s largest independent aluminium foundries, secured more than £3 million of new contracts from car makers looking to explore ways of reducing weight on future models.
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