Patterns of the global lead-acid battery industry in 2018

Lead acid battery means that the electrode is mainly made of lead and its oxides, and the electrolyte is a battery of sulfuric acid solution. It is widely used in many fields such as automobiles, motorcycles, communications, new energy, transportation, and electricity.

Global Lead Acid Battery Market Competition

In terms of the size of global lead-acid battery production capacity, China is a major producer, with production accounting for about 45 % of the world's total, followed by the United States, with production accounting for about 32 %, Japan ranked third, accounting for nearly 13 %, and Germany. The production companies with the highest sales of lead-acid batteries in the world mainly include the United States Riot Group, EXIDE Group(including the German Sunshine Company), Japan Soup Shallow Company, Siendi Company, and Japan Matsushita Company.

Lead acid batteries are the world's largest output battery products. Production accounts for 50 % of all batteries and 70 % of rechargeable batteries. Even the most developed countries and regions in the world, such as Europe, America, and Japan, still produce and use lead-acid batteries. In the lead-acid battery product structure, start-up lead-acid batteries accounted for the largest proportion, reaching 48 %, followed by dynamic lead-acid batteries, accounting for 28 %, and standby and storage lead-acid batteries accounted for 15 %.

From the point of view of the number of competition, the growth rate of the industry, the exit barriers, the degree of homogenization, and the level of competition, the industry is at a mature stage, and the overall quality of the industry is uneven. Most companies are concentrated in low-end products, fighting price wars, and the existing companies are fiercely competitive.

Multinational companies accelerate the distribution of the Chinese market

The huge market potential and cheap resources have always been an important incentive for direct investment by multinational corporations. In recent years, competition in the market has intensified, raw material prices have risen, and transnational corporations are facing more intense market competition, and China's opening up has increased. The value of multinational companies entering China has gradually increased.

Ninety percent of multinational companies that have entered the Chinese market plan to invest more, extending from manufacturing to research and development, services, sales, and other upstream and downstream industries. There is a lack of effective integration between the value links that are gradually entering, and the synergy effect cannot be fully exerted. All these reasons require multinational companies to reintegrate the resources and capabilities of the Chinese region in order to exert synergies and obtain maximum economic benefits.

1 Consolidation and reorganization to expand the business scope

Foreign capital enters the Chinese lead-acid battery industry through joint ventures and mergers and acquisitions. For example, Panasonic Electric Equipment Industry Co., Ltd. and Shenyang Northeast storage battery Co., Ltd. jointly established panasonic battery(Shenyang) Co., Ltd. Of course, after China joined the WTO, it is inevitable that foreign capital will enter the Chinese capital market and carry out joint ventures and mergers and acquisitions with Chinese enterprises. Foreign businessmen with existing funds, high and new technology, and advanced management experience should be welcomed. The entry of foreign capital, technology, and management into the Chinese market has also promoted the improvement of China's industrial technology level and competitiveness.

2 Increase Research and Development of Technology

The investment of multinational companies in China pays more attention to technology research and development, and the R&D investment in China is increasing. The lead-acid battery industry multinational companies have entered China to carry out strong joint strategies with Chinese companies that have developed well, have a long history, or are relatively advanced, in order to gradually expand and occupy the domestic market in China.

3 Implementation of localized management

While implementing the globalization strategy, multinational companies actively implement localization strategies, whether it is employees, operating modes, or even suppliers, almost 100 % localization management. On the one hand, this can reduce production costs, be close to users, supply products and services on the spot, and form an industrial supply chain locally; On the other hand, by using advanced management ideas to optimize the management model, we can improve the operating efficiency of enterprises and enable enterprises to better enter the Chinese market.

4 Control core technology

Market competition is essentially a contest of modern science and technology and a competition of technological innovation. Transnational corporations dominate by firmly controlling the most critical elements such as product standards and core technologies in the transfer of industrial chain division of labor. And through increasing investment in research and development, strengthening its own technological innovation capabilities, using new materials and new techniques to develop new environmental protection products, occupying the technical commanding heights, and increasing the monopoly on key core technologies to obtain high profits.

The page contains the contents of the machine translation.