China Automotive Parts Aluminum Die Casting, Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

China Automotive Parts Aluminum Die Casting, Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

China Automotive parts aluminum die casting market was valued at USD 8.21 billion in 2021 and it is expected to reach USD 13.22 billion in 2027, registering a CAGR of 8.26% in terms of revenue during the forecast period 2022-2027.

The COVID-19 pandemic has hindered the growth of the automotive parts aluminum die casting market due to its impact on vehicle production, as there was continuous shut down of manufacturing facilities and disruption of the supply chain across various parts of the world.

China is one of the largest markets for automobiles in the world and is expected to grow more in the future. Increase in the production of passenger cars and commercial vehicles is expected to drive the market for the automotive parts developed through the aluminum die casting. The pollution is becoming serious concern and governing bodies are focused at curbing the pollution occurring through vehicles. Aiming at the same, automobile manufacturers are opting for the lightweight components or reducing the fuel consumption and curbing the emission of harmful pollutants into the atmosphere.

The government pushing automobile manufacturers and encouraging customers to adopt the electric vehicle by providing subsidies as the country is planning to completely ban diesel and petrol vehicles by 2040 . Increase in the production of the electric vehicles, such as passenger cars and commercial vehicle, is going to boost the sales of the automotive parts developed through aluminum die casting.

In recent years, automotive parts have witnessed advancements and innovations with the evolution of new technologies. Among them, the use of lightweight materials for the manufacturing of auto components has been gaining attention worldwide. One of the important reasons for this popularity is the enhanced fuel economy of automobiles with the adoption of lightweight automotive materials manufacturing crucial parts. Additionally, the light weighting of vehicles must be done without compromising on safety before quality and performance. Therefore, aluminum is most preferred by manufacturers due to its varied advantages.

Rise in demand demand for electric and hybrid vehicles has turned automakers’ focus to use lightweight materials like aluminum as a substitute for heavier steel and iron in all types of vehicles. For instance, according to the source, the average aluminum content used in 2021 to manufacture a battery electric vehicle in China was 173.1 kg per vehicle. Now due to advancements in technology, aluminum’s inhered strength and significant weight reduction properties, the usage of aluminum is expected to increase by up to 70% by 2027. Similarly in 2021, the average aluminum used in electric commercial busses was around 244.5 kg which is expected to reach 340.6 kg by 2027. That is, more than 70% of increase in the use of aluminum in manufacturing.

Aluminum has been the most preferred metal for pressure die casting. Within automotive application, hybrid and electric vehicle technologies are on the rise. Pressure die-casting is expected to be the key contributor in areas of transmission, power train components, and battery compartment housings. For instance, Electric Vehicles (EVs) expected to use 25% to 27% more aluminum by weight than combustion engine cars in coming years and currently, at an average of 250 kg of aluminum per unit, EVs have already created a demand for around 250,000 million metric tones of aluminum, which is expected to soar to 10 million tones by 2030. These instances expected to drive demand for high pressure die casting components owing to its advantages. In addition, the companies manufacturing EV are also actively procuring these pressure diecasting machines and are adopting this technology to make themselves ready for growing consumer demand.

The major players across the country are focusing on upgrading their portfolio and focus on the manufacturing plants expansion, collaborations, etc. to pitch themselves as top players in the market. For instance, In February 2021, Nantong Jiangzhong Photoelectricity Co., Ltd. Installed its Italpresse gauss TF5700 high pressure die casting (HPDC) machine at the company’s base in Jiangsu province, China. With its huge 3500 x 3500mm plates, the TF5700’s closing force of 5700 tons making it the ideal solution for large part production. Jiangzhong has also purchased a Westomat 3100 from StrikoWestofen to integrate seamlessly with the 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, Linamar Corporation, ALCOA Inc. and others. The major players in the country are entering into strategic partnership with global leaders to gain considerable market share.

For instance, In August, 2021, Linamar Corporation announced the partnership with Netherlands based Innovative Mechatronic Systems B.V. (IMSystems). The partnership focuses on to bring the Archimedes Drive transmission system to market.

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