One article to understand development and industry barriers of automotive aluminum alloy precision d

Time：2024-05-29 09:26:49 / Popularity： / Source：

Manufacturing processes of aluminum alloys in automotive field mainly include stamping, die-casting and extrusion molding. Die-casting is main production method of aluminum alloy parts. Aluminum alloy die-casting parts are used in automotive field for about 80%, extruded parts and rolled parts account for about 10% each. Under requirements of environmental protection and energy conservation, automobile manufacturing continues to move toward lightweighting, promoting widespread application of low-density, high-strength aluminum and magnesium alloys in automobile parts.

automotive aluminum alloy precision die castings

01 Development Trend of Automotive Aluminum Alloy Precision Die Casting Industry

Die-casting industry is developing in direction of precision, customization, high-tech and green environmental protection, keeping pace with new energy vehicle market, taking technological innovation as core, and constantly improving its competitive advantage in industry chain.
Four major development trends in automotive aluminum alloy precision die casting industry

Precision and high performance	With rapid development of automotive industry, especially new energy vehicles, quality, precision and performance requirements of die-casting parts are increasingly increasing. Die-casting parts must not only meet complex internal structure design requirements, but also pursue finer surface treatment and appearance quality while ensuring strength, stiffness, heat resistance and other properties.
Enhanced customization and R&D production capabilities	Downstream automobile manufacturers and parts suppliers have increased personalized demand for die-casting parts, requiring die-casting companies to have strong R&D capabilities and rich production experience, to be able to quickly design and manufacture customized products according to specific needs.
Capital and technology intensification	Due to its customization and high-precision characteristics, die-casting industry requires high investment in technology and equipment. Enterprises need to continuously introduce advanced die-casting equipment, precision processing equipment, R&D testing instruments, cultivate professional R&D teams to adapt to changing market demands and technological innovations.
Strong demand in new energy vehicle market	Driven by China's "dual carbon" policy, production and sales of new energy vehicles have shown explosive growth, which has put forward more demands for application of lightweight materials such as aluminum alloys and magnesium alloys in auto parts manufacturing. New energy vehicle bodies and components tend to be manufactured using die-casting technology to reduce weight and improve energy efficiency, which creates huge market space and development opportunities for die-casting industry.

02 Automobile aluminum alloy precision die casting industry demand market analysis and forecast

Ministry of Industry and Information Technology's "Energy Saving and New Energy Technology Roadmap" proposes that China's aluminum consumption targets for bicycles in 2025/2030 are 250kg/vehicle and 350kg/vehicle.
Application scope of aluminum alloy die-casting parts in China and foreign automotive industry is classified according to use function. It has been used in structural parts, stress-bearing parts, safety parts and decorative parts, etc., mainly including following aspects:
Motion transfer system:
Cylinder block, cylinder head cover, cylinder head cover, crankcase, cylinder head cover, oil pan, generator housing, engine gear room, various engine brackets, etc., transmission housing, transmission bracket, etc.;
Steering system:
Chain cover, rack housing and turbine housing;
Chassis assembly:
Chain cover, rack housing and turbine housing;
Steering system:
Suspension brackets and beams;
Body:
Wheel hubs, frames and decorative products;
Other:
Shock absorber lower end cover, compressor bracket, clutch pedal and brake pedal, etc. Aluminum alloy die casting related products have been widely used in automotive industry.
At present, aluminum alloy high-pressure die-casting process widely used in die-casting industry is easy to process complex formed parts, can effectively improve production efficiency and reduce costs, and is favored by all walks of life. Proportion of various aluminum alloy processes used in automobiles is approximately: casting 77%, rolling 10%, extrusion 10%, and forging 3%. Casting process is the most important processing technology for automotive aluminum alloys. Although development of China's automobile industry started later than that of developed countries, rapidly growing domestic market and relatively low cost of production factors have attracted global automobile industry resources to China. High-end automobile brands have established manufacturing bases in China, which has significantly improved technical strength and manufacturing capabilities of China's automobile and parts industry. According to statistics from China Association of Automobile Manufacturers, China's automobile production increased from 13.791 million units in 2009 to 27.021 million units in 2022, with a compound annual growth rate of 5.31%; during same period, China's automobile sales increased from 13.6448 million units to 26.864 million units, with a compound annual growth rate of 5.35%. In 2021, China's automobile production and sales were 26.082 million units and 26.275 million units respectively, a year-on-year increase of 3.40% and 3.80% respectively, ending three consecutive years of decline since 2018; in 2022, China's automobile production and sales were 27.021 million units and 26.864 million units respectively, a year-on-year increase of 3.40% and 2.10% respectively. Production and sales have ranked first in the world for 14 consecutive years. In 2023, China's automobile production and sales were 30.161 million and 30.094 million vehicles respectively, a year-on-year increase of 11.6% and 12% respectively. Growth rate is relatively high, showing a rapid growth trend. Production and sales of China's automobile industry from 2018 to 2023 Since 2021, production and sales of new energy vehicles have grown rapidly.

In 2022, new energy vehicles have been sold in more than 100 countries and regions around the world, with cumulative global sales exceeding 27 million vehicles. As requirements around the world for limiting carbon emissions become more stringent and various policies to support development of new energy vehicles are introduced, production and sales of new energy vehicles will achieve greater growth in 2022 compared with 2021. China's new energy vehicles sales in 2022 will reach 6.887 million units, a year-on-year increase of 95.60%, accounting for 67% of the world's total sales. New energy vehicle market potential is gradually emerging. In 2023, China's new energy vehicle production and sales were 9.587 million and 9.495 million vehicles, a year-on-year increase of 35.8% and 37.9% respectively, with a market share of 31.6%.
Production and sales of China's new energy vehicle industry from 2018 to 2023

03 Main barriers to automotive aluminum alloy precision die casting industry

(1) Customer barriers

The world's major vehicle manufacturers or auto parts suppliers all have a set of strict quality system certification standards in process of selecting upstream parts and components suppliers. Under normal circumstances, auto parts suppliers can become candidate suppliers for OEMs or auto parts suppliers only after passing relevant parts quality management system certification audits; OEMs or auto parts suppliers review production management links of upstream suppliers in accordance with their respective supplier selection standards; finally, before mass production of relevant supporting parts, strict advanced product quality planning (APQP) and production part approval process (PPAP) must be implemented, repeated trial assembly and verification must be carried out. Once cooperative relationship between the two parties is established, OEM or auto parts supplier usually will not easily change its supporting parts suppliers. Strict certification standards in downstream industry have formed a high entry barrier for new competitors in auto parts industry.

(2) Technical barriers

Aluminum alloy precision die-casting parts in automotive field have complex shapes, high material properties and precision requirements. Parts design, mold manufacturing, die-casting, machining, process optimization and other aspects of production process require long-term technical accumulation. Therefore, die-casting companies in industry need to have strong material development and preparation technology, die-casting technology, even product solution design, mold design and manufacturing capabilities to meet product quality requirements of vehicle manufacturers and first-tier auto parts suppliers, thereby taking advantage of fierce market competition.

(3) Financial barriers

Die-casting industry has a large capital investment and requires continuous R&D investment to consolidate product quality and ensure advancement of technology. Purchase costs of smelting equipment, die-casting equipment, mold production equipment, machining equipment and precision testing equipment are generally high, especially for production of high-end precision parts. In order to ensure that technical indicators such as product accuracy, strength, and processability reach a high level, parts manufacturing companies need high-end processing equipment and require more capital investment, which puts forward higher requirements for financial strength of companies in industry.

Gud Mould Industry Co., Ltd