For die casting industry, ALUCAST (The Aluminum Casters' Association of India) is the most influential organization in India and Southeast Asia. The annual exhibition held by this organization is the most important event in India with the active participation of a large number of equipment manufacturers and audience. In 2013, ALUCAST conducted a seminar on December 6-7 in Bangalore, South India.
Unlike the previous edition, ALUCAST 2013 was accompanied by great economic pressure. India’s GDP had been increasing with an annual growth rate over 7% for nine years since 1992 and economists believed India may prevail in the future competition with China. But problems behind rapid development began to emerge in 2011 and had a negative influence on India’s economy: continued and even larger economic decline in 2013. Central Bank of India had to revise their prediction of annual economy growth again, from 6.5% to 4.5%.
The sluggish economy also casted a gloom over the automotive industry and the relevant die casting industry. According to the Indian agent, average machine operating rate was less than 50% at the worst moment in January; some factories had only 30% machines running or even shut down the facilities. In October, the market showed signs of recovery. However, months of depression had hit India’s die casting sector hard in 2013. As predicted, the demands for new die casting machines dropped to a record low and China was affected most.
Data showed that Chinese cold chamber die casting machine exports to India were 37 units from January to November in 2013, reduced by 50% compared to 75 units in 2012; exports dropped from $867,400 in 2012 to $332,300 in 2013 (January to November), with 61.7% off. According to data analysis and the agent’s news, some machine exports in 2013 were actually the orders in 2012.
The export data and market analysis indicate that Indian die casting machine market has the following characteristics under current economic situation:
1. Considering economic downturn, customers tend to buy cheaper second-hand machines or low-class Chinese machines and they do not need after-sales service.
2. Some strong casting manufacturers have co-operative relationship with large Japanese and European companies that require their partners to use expensive Japanese or European die casting machines in production.
3. As the economy recovers, customer’s production increases. Some customers refrain from buying machines despite their actual demand and wait for sustained economic recovery, stability of currency and especially the change in administration.
Though India is confronted with difficulty, it remains one of the largest die casting machine markets appealing to equipment manufacturers in the world. Despite the weak market, nine die casting machine manufacturers still took part in the seminar held by ALUCAST in 2013. Attendees were Buhler, Idra, Colosio, Maicopresse, Toshiba, Toyo, L.K. Machinery Co., Ltd., Zitai and Yizumi. All representatives were positive about the prospect. India’s election will be held in May 2014. With the power transition, there may be new economic reform that pulls India out of recession. The demands for die casting facilities probably increase steadily at that time. With further economic growth, more die casting machine manufacturers would like to get share of the Indian market; and low-price-oriented Chinese manufacturers may have an impact on the price level of Indian market. Therefore, Yizumi shall continue to make improvement and know more about the market to make better planning, maintain a good reputation, get more market share and provide better equipment for customers.
