The Zhitong Finance App learned that the auto parts sector has declined collectively. As of press release, BOE Precision Electronics (00710) fell 4.45% to HK$14.16; Zheng Meiqi (00564) fell 3.36% to HK$7.77; Nexteer (01316) fell 1.21% to HK$4.91; and Wuling Motors (00305) fell 1.15% to HK$0.86.
On the news, industry sources revealed that car manufacturers are negotiating with component suppliers to seek lower quotations. Some component suppliers have reached price reduction agreements with customers. One head-up display supplier has agreed to reduce the price of its products by 1%-2% per year; another automotive sensor system supplier revealed that its customers usually ask for a price reduction of 3%-8% per year. Customers have now agreed that prices will remain the same this year, but product features should be upgraded.