China's demand for SKF bearings from Sweden is increasing.
Thanks to the increase in demand for electric vehicles and the adaptation of suppliers to rapidly changing automotive technologies, SKF currently takes at least one new order each month.
Bernd Stephan, president of SKF Automotive, said that although the sales of electric vehicles in Europe are also increasing, the sales volume of electric vehicles in China is increasing. 'We have gained a lot of new business in this area... so many projects have come suddenly. , We are constantly talking to these customers. ' Stephan said.
The impact of electric vehicles on bearing manufacturers is huge, because the number of bearings commonly used in electric vehicles is approximately half of the number of bearings used in internal combustion engine cars. While SKF focuses on components such as bearings and seals, it also includes German Schaeffler. Competitors, including the Le Group, are developing a complete range of electric drive products. Since only 4% of SKF's products are used in internal combustion engines, and wheel bearings are the most sold products, SKF is greatly affected. Protection. 'The business we lost in the internal combustion engine market is winning back in the electric vehicle market.' Stephan said. The emergence of more hybrid vehicles in between is also good for us.
The increasingly fierce competition in the automotive bearing market, the increasing sensitivity of customers to the price, and the rise of Chinese competitors all make people increasingly concerned about SKF’s long-term profitability. Stephan said that SKF can use more economical steel. And different components to reduce the manufacturing cost of non-high-end bearings. 'Our productivity is very high, and not only in Europe to produce bearings.'
SKF's automotive business also competes with Japanese companies such as NTN, NSK and JTEKT, and China National Group. Its sales accounted for 31% of SKF's 2017 sales.
Although the automotive business has always been a concern for the group, the 2015 reorganization plan has begun to take effect, achieving almost 8% profit target in the first quarter. The reorganization plan is mainly aimed at highly customized bearings and seals.
Looking ahead to the future of the complete driverless car market, Stephan believes that this will bring more changes. Due to the increased use of hub bearings, wheel bearings may need to have a longer service life. 'Now people still don't realize the unmanned meaning of driving. What? Theoretically, the number of vehicles will be reduced to one-third of what they are now.' Stephan also added that it is very important to prepare for this now.
In 2016, SKF Automotive sales reached US$1.84 billion, ranking 86th in the list of the top 100 suppliers in the European Automotive News.