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CIDs Projected to be Down 10% Y/Y in 2020 After Dropping 6% in 2019
June 07, 2020
Automakers began partial operations in May as openings were allowed only after receiving approvals from state authorities, and were conditional to following safety protocols such as body temperature scanning, social distancing and ensuring high standards of sanitization. Shutting down operations was far easier than reopening factories as companies need to manage complex synchronization issues. The resumption of operations requires OEMs to coordinate with hundreds of local and global suppliers, logistics partners and thousands of employees. The biggest challenges come from not having enough workers willing to come back and sufficient and continuous parts supply. It is likely plants across the world will function with a skeleton staff at least until July. Partial dealership re-openings are another problem, with almost all vehicle sales delivered through them – online sales are a rarity and still under development. The sharp contraction in sales will also lead to a decline in average manufacturing capacity utilization. The effect on the display industry will be substantial as CID (central information display) panel shipments initially caused by the US-China trade disputes fell 5.8% in 2019. In 2020, automotive CID panels, including those for aftermarket but excluding white-box models are forecast to fall an additional 9.9% Y/Y to 80 million units due to weakening automobile production. While automotive manufacturing activities in China have gradually recovered and CID devices have almost become standards for new automobile models, whether the end-market demand could return to normal following the easing of lockdown measures in various countries will be crucial for reaching stabilization in global CID panel shipments. CID panels sized in 7.x- to 8.x-inch will remain the mainstream in 2020, with the proportion of above 9-inch increasing gradually. The ratio of mid-sized CID panels against total shipments will decrease to 66.4% in 2020, while the ratio for 9-inch above models will move up to 18.6%. From: DigiTimes Research
June 07, 2020
Automakers began partial operations in May as openings were allowed only after receiving approvals from state authorities, and were conditional to following safety protocols such as body temperature scanning, social distancing and ensuring high standards of sanitization. Shutting down operations was far easier than reopening factories as companies need to manage complex synchronization issues. The resumption of operations requires OEMs to coordinate with hundreds of local and global suppliers, logistics partners and thousands of employees. The biggest challenges come from not having enough workers willing to come back and sufficient and continuous parts supply. It is likely plants across the world will function with a skeleton staff at least until July. Partial dealership re-openings are another problem, with almost all vehicle sales delivered through them – online sales are a rarity and still under development. The sharp contraction in sales will also lead to a decline in average manufacturing capacity utilization. The effect on the display industry will be substantial as CID (central information display) panel shipments initially caused by the US-China trade disputes fell 5.8% in 2019. In 2020, automotive CID panels, including those for aftermarket but excluding white-box models are forecast to fall an additional 9.9% Y/Y to 80 million units due to weakening automobile production. While automotive manufacturing activities in China have gradually recovered and CID devices have almost become standards for new automobile models, whether the end-market demand could return to normal following the easing of lockdown measures in various countries will be crucial for reaching stabilization in global CID panel shipments. CID panels sized in 7.x- to 8.x-inch will remain the mainstream in 2020, with the proportion of above 9-inch increasing gradually. The ratio of mid-sized CID panels against total shipments will decrease to 66.4% in 2020, while the ratio for 9-inch above models will move up to 18.6%. From: DigiTimes Research
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