According to statistics of steam Association, 2007 domestic automobile enterprises steel consumption reached 12.55 million tons, due to vehicle production will continue to expand in the next few years will also increase the amount of steel to the automotive industry in 2010 steel demand will rise to 27.67 million tons.

      The last three years and sales of China's auto market is developing rapidly, rapidly changing market environment, China's automobile industry faces pressure on the reorganization and consolidation, corporate profits continue to decline. This has forced car makers continue to adapt to changes in the market, find new profit growth, which was developed by leaps and bounds. For China's auto enterprises speaking, the reality of the practical way is the need to cater to changes in market demand, improve service levels, the establishment of independent brands, select the appropriate sales model, in order to more intense competition in seeking its own development.

Raw material prices and vehicle prices down "to eat" out of profits manufacturers, automotive manufacturers profiteering era coming to an end, manufacturers to achieve profit growth will be looking for new profit growth point. This year for example, after the Spring Festival, the domestic market rising prices of raw materials: the per ton price of hot-rolled plates up 200-300 yuan per ton cold-rolled plates, an increase of 400-600 yuan. This year terms in February, compared with the same period last year, large-scale ordinary steel rose 26.9 percent, ordinary medium-sized steel products rose 36.7 percent, ordinary small steel rose 30.2 percent, up 33.7 percent wire, in the thick steel rose 19.7 percent. As the iron and steel, rubber, plastics and other raw material prices increased sharply, then the cost of car manufacturers in the sharp increase, to the end of March this year, due to price hikes of raw materials caused by Zaoju costs rose 7 percent, thereby reducing the level of profitability.