The Close Relationship Between Enamelled Wire and the Automotive Industry [SMM Analysis]

Enamelled wire is regarded as the "heart" of motor and electrical industrial products, playing a crucial role in power equipment, household appliances, industrial motors, and transportation equipment. With the continuous development of the automotive industry and the rise of new energy vehicles (NEVs), the application of enamelled wire in the automotive sector has become increasingly widespread. According to SMM, the application of enamelled wire in automotive motors accounts for approximately 10%. This article briefly analyzes the application and development of enamelled wire in the automotive sector.

For automotive motors, enamelled wire has advantages such as good conductivity and strong insulation performance, making it one of the essential materials for internal circuits in automotive motors. The application of enamelled wire in automobiles mainly includes the following aspects:

1. Generators and Starters: Enamelled wire is used to connect automotive generators and starters to transmit current and signals. Due to its ability to withstand high current loads and vibrations, it can stably transmit electrical energy, ensuring the normal operation of generators and starters.

2. Ignition System: Enamelled wire connects the ignition coil and spark plugs. It can withstand high voltage and high temperatures, ensuring the reliability and stability of the ignition system.

3. Battery System: It is used to connect automotive batteries and other electrical equipment, such as lights and audio systems. It not only transmits electrical energy but also protects circuits from moisture and corrosion, thereby extending the lifespan of the battery system and related electrical equipment.

4. Control System: Enamelled wire plays an important role in connecting control units, sensors, and actuators. It can accurately transmit control signals, ensuring the accuracy and reliability of the system.

5. Lighting System: Enamelled wire connects the front and rear lights of the car, ensuring the normal operation of the lights and providing safety for driving at night and in adverse weather conditions.

6. Dashboard System: Enamelled wire connects components such as indicator lights and displays, transmitting signals and data to ensure the normal display and functionality of the dashboard.

In recent years, with the rise of NEVs, the production and sales of automobiles have grown rapidly. In October, the national trade-in policy had a significant boosting effect on automobile consumption, driving the continuous rise in the automotive market. According to the China Association of Automobile Manufacturers (CAAM), in October, China's automobile production and sales reached 2.996 million units and 3.053 million units, respectively, up 7.2% and 8.7% MoM, and up 3.6% and 7% YoY.

CAAM data shows that from January to October 2024, China's automobile production and sales reached 24.466 million units and 24.624 million units, respectively, up 1.9% and 2.7% YoY, achieving steady growth on a high base. Among them, NEV production and sales reached 9.779 million units and 9.75 million units, respectively, up 33% and 33.9% YoY, with NEV new car sales accounting for 39.6% of total new car sales. In 2024, the domestic automotive industry benefited from the trade-in policy for consumer goods and the automotive export market, with production and sales maintaining a growth trend. It is expected that the annual automobile production may exceed 31 million units.

Enamelled wire is closely related to the automotive industry, being widely used in wiper motors, motor engines, lifters, relays, drive motors, and NEV charging piles. The consumption of enamelled wire in China is closely related to automobile production. With the automotive production maintaining growth in 2024, related enamelled wire companies have reported to SMM that orders for automotive-related enamelled wire have shown steady growth, and it is expected that orders related to automotive parts will remain stable in 2025.