Moulds are basic process equipment processed by specialized equipment using metal, non-metal and other materials. They are forming tools for mass production of specific parts or parts, and are an indispensable part of manufacturing industry. With rapid development of automobile industry, electronic information, home appliances, building materials and machinery industries, my country's mold industry has achieved rapid growth. Main business revenue of my country's mold manufacturing industry has increased from 163.988 billion yuan in 2011 to 272.714 billion yuan in 2019 , with a compound annual growth rate of 6.56%.

China's auto production and sales have ranked first in the world for 11 consecutive years. China's market share in global automobile manufacturing industry has increased from 13.78% in 2008 to 28.23% in 2019. Affected by new crown pneumonia epidemic, my country's automobile production will be affected to a certain extent from 2019 to 2020. Data show that in 2019, my country's automobile production amounted to 25.53 million, a year-on-year decrease of 8%. From January to June 2020, my country's automobile production was 9.97 million, a year-on-year decrease of 16.5%. Continuous development of automotive industry has promoted growth of demand in automotive mold market.

As competition in industry intensifies, in order to maintain influence of original brand, automobile OEMs will choose to upgrade to attract consumers. Therefore, frequency of new models on the market is getting faster and faster, development cycle is getting shorter and shorter. Development cycle of new models has been shortened from about 4 years to 1-3 years, modified models have been shortened from 6-24 months to 4-15 months. With acceleration of frequency of car model changes and replacements, launch of new models will continue to increase, which will correspondingly drive development of upstream automotive mold industry.
Global procurement strategy of auto parts companies brings opportunities to Chinese mold companies
With rapid development of my country's auto industry, world's major auto parts suppliers have entered China to invest and build factories. Data show that in 2018, my country's auto parts manufacturing enterprises achieved sales revenue of 4.00 trillion yuan, a year-on-year increase of 7%. Driven by steady growth of automotive industry, overall development of parts market tends to be good. It is estimated that sales revenue of China's auto parts industry will reach 4.61 trillion yuan in 2020. Global procurement and centralized procurement strategy of automotive molds provides more development opportunities for my country's large automotive mold suppliers. With continuous improvement of product quality and production technology, my country's independent brand automotive mold suppliers will further integrate into global division of labor in automotive industry chain .

In recent years, a series of national industrial policies have built a good policy environment for development of automotive mold industry. In January 2019, 10 ministries and commissions including National Development and Reform Commission issued "Implementation Plan for Further Optimizing Supply to Promote Stable Growth of Consumption and Promote Formation of a Strong Domestic Market (2019)". Plan intends to promote automobile consumption through various measures such as orderly promotion of obsolete and renewal of old automobiles, continuous optimization of subsidy structure for new energy automobiles, promotion of rural automobile replacement, and further optimization of local government motor vehicle management measures to better meet residents' travel needs.

As a pillar industry of national economy, automobile industry plays a role in promoting and leading many sectors of national economy. According to statistics from China Association of Automobile Manufacturers, for entire year of 2019, China's automobile production was 25.721 million, and sales volume was 25.769 million. Production and sales volume remained world's number one for 11 consecutive years. Implementation of my country's comprehensive construction of a well-off society and continuous growth of residents' income will play a significant role in driving consumption in automotive industry, huge market in automotive industry provides a strong guarantee for expansion of upstream automotive mold industry.

Launch of new models in automotive industry, accelerated speed of upgrading and remodeling of original models have become an important feature of development of my country's automotive industry. With improvement of Chinese consumers' demand for automobile quality and diversification of overall demand, my country's passenger car market has entered a diversified and individualized development stage. Acceleration of replacement of automobile models and continuous upgrade demand after launch of new cars have also expanded development space of automobile mold industry.

With gradual recovery of global economy, return of high-end manufacturing in developed countries led by Europe, North America and Japan, development of manufacturing in developing countries represented by India and Brazil have gradually increased demand for molds. Data show that in 2019, my country's total mold imports and exports were 8.185 billion US dollars, a year-on-year decrease of 0.48%. Among them, total import value was 1.939 billion US dollars, a year-on-year decrease of 9.37%; total export value was 6.246 billion US dollars, an increase of 2.64%.

World's well-known automakers are all multinational companies that have established production bases in major regions around the world to supply local automotive market. With rapid development of my country's automotive plastic mold industry, technical level, quality level, and reliability have significantly improved, coupled with my country’s labor cost advantage, so that my country’s automotive plastic molds have a higher cost performance, more and more automobile manufacturers have listed China as one of important countries for global procurement of automotive plastic molds, which provides a better opportunity for development of my country's automotive plastic mold industry.

In recent years, domestic automobile plastic mold companies have achieved a large degree of improvement in equipment and technology through various methods such as introduction, digestion, absorption, and independent research and development of advanced technologies, have narrowed gap with foreign counterparts. Continuous improvement of technology has promoted upgrading of my country's automotive plastic mold industry, promoted development of entire industry in a more healthy and orderly direction, provided technical guarantee for performance and quality of products.