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Vehicle panel shipments are in recession for the first time this year? Dongguan Keao Photoelectric Co., Ltd. pays more attention
In 2018, the annual growth rate of vehicle panel shipments was about 9.4%, reaching 162 million pieces. However, in the first quarter of 2019, vehicle panel Market shipments decreased by 10%. IHS Markit estimates that there will be another recession in the second quarter of 2019, and the current forecast for the third quarter of major panel manufacturers is lower than originally expected. It is expected that total vehicle panel shipments will fall to 160 million pieces in 2019, compared with the previous year's recession of 1.3%, which is also the first decline for vehicle panels.
In the first quarter of this year, LGD replaced JDI as the largest supplier, with a market share of 16.8%. In the past two years, JDI experienced many financial crises, and its market share continued to decline to 16%. Under Tianma's catch-up, Youda fell to the fourth place with a market share of about 13.1%, Tianma jumped to the third place with a market share of about 14.2%. Qunchuang and Sharp ranked fifth and sixth respectively, with market share of about 11.4% and 10% respectively. It is noteworthy that Beijing Dongfang City has increased to 6.4%. As production capacity continues to open, it is expected that the ranking of automotive panel suppliers will continue to shuffle.
The pre-factory installation rate of the central console and dashboard panel has exceeded 65% in 2018, and the expected growth rate of shipments has slowed down. In addition, the level of vehicle inventory rose last year, and panel inventory revision was launched in the second half of 2018, which slowed down the pulling capacity, especially in China. On the other hand, Europe began implementing the WLTP Worldwide Harmonized Light Vehicles Test Procedure in September last year. Many vehicles failed to be verified in time, delaying the time to market and affecting the panel demand in the second half of 2018. The panel inventory adjustment continued into the first half of this year and affected demand.
Huaying accounted for about 7% of the car panel Market in 2018. However, in December last year, Huaying appealed for restructuring, and then stopped production of car panels. Due to the long cycle of vehicle panel design, certification and delivery, replacement manufacturers such as Youda, Qunchuang and Beijing Oriental need to wait until the end of the second quarter or the third quarter of 2019 to deliver, with a period of six months.
In the second half of this year, after 10 years of continuous growth, vehicle market shipments began to decline. Trade wars have created economic uncertainty, and it is expected that vehicle shipments will continue to decline, affecting the demand for vehicle panels. The third quarter shipment forecast of panel factory is lower than the plan at the beginning of the year, and the demand rebound in the second half of the year is likely to be lower than expected. However, with the increasing adoption rate in emerging countries and the introduction of new technologies, the market of automotive panel is expected to resume growth in 2020.
Dongguan Keao Optoelectronics staff are brave in exploring and learning, keep up with the industry development efforts to lay a scientific and technological foundation for research and development and production of high-quality products, and do a good job in serving customers with customized products!