TPU Car Wraps Drop Below 4000 Yuan! Material Cost Breakdown: Is the Price War a Disruption or Self-Destruction

Recently, the hottest topic in the automotive film community has been that a certain well-known top-tier imported brand was the first to launch last month.The 3980 yuan TPU invisible car film has shaken the industry upon its announcement. Several mainstream leading brands quickly followed suit, launching TPU car films at the same price, officially igniting a price war. The automotive film circle has been buzzing with various voices: some claim that stores selling at 3980 yuan can't make a profit and are struggling to survive; some question whether the imported brand's product is actually manufactured domestically; others believe that domestic brands offer better products at the same price; and some are even muddying the waters by claiming that there is no difference between the 2980 yuan film and the 3980 yuan one. Interestingly, a suspected brand distributor complained: "Selling imported brand car films at 3980 yuan is like LV and Hermès selling cheap bags."

The event of "Various brands launching TPU car wraps at 3980 yuan" marks the official start of the price war in the automotive film industry, signaling the beginning of a deep reshuffle in the industry.

1. Automotive Film Industry"Shopping Spree" Moment: Analysis of Three Major Drivers Behind the Industry Crisis

The automotive film industry has been experiencing intense competition for several years. Facing slim profits and rising operating costs, factories, channels, and stores have all been making adjustments, but it is only this year that a real turnaround has been seen.There are three reasons for the "shopping spree" moment:

First-tier brandsThe "bowing" price shock is deadly. It is not small brands, but well-known leading brands in the industry that have slashed the price of TPU invisible car wraps to 3,980 yuan. Major brands dare not compromise on quality and can vouch for their product quality, making the impact of their price cuts even more powerful.

Second, cost transparency leads to imitation. High-quality genuine products can...A selling price of 3,980 yuan indicates that there is still profit after deducting operating costs, which is equivalent to making the cost of paint protection film open and transparent. It is expected that more brands will follow suit and bring the price of TPU paint protection film down to the 3,980 yuan range.

Third, the car window film category may be affected. Car window films andTPU invisible car wraps share similarities in raw materials, base materials, and operating costs, with comparable pricing logic. They also utilize the same manufacturers, sales channels, and industry professionals. Therefore, the automotive window film category may also have room for price "optimization."

With the prices of car paint protection films and window films dropping significantly and possibly declining further, the profits of film installation shops are being squeezed."Weak profitability stores are more likely to collapse due to 'devouring.' The store end is the first to be affected, and instability in terminal operations will trigger a crisis in the automotive film industry."

2. First-tier Imported Brands"Dimensionality reduction strike" requires both spending power and internet genes.

Why have leading imported brands initiated a price war during tough times in the industry? Typically, companies launch price wars for two main objectives: first, to quickly capture market share; second, to strike at their competitors. However, relying solely on price wars is far from enough—companies must also possess three core business elements: strong products.System design capabilities, a strong execution team, and substantial capital. Without these elements, the prosperity brought by price wars will be like building castles in the sand, destined to collapse.

In retrospect, the most intense and successful price wars were waged by internet platform companies such as Taobao, JD.com, and Pinduoduo. More akin to the automotive film industry and worth learning from is the internet.The new leading companies in O2O include:

Didi, Meituan, and SF Express have significantly lowered prices in the traditional transportation, food delivery, group buying, and courier industries, initially subsidizing with tens of billions.

Luckin Coffee and Bawang Chaji: lowered the price of coffee and tea beverages from dozens of yuan to around a dozen yuan, initially distributing discount coupons worth a few yuan.

Tuhu, JD.com, and Tmall: have driven tire and engine oil prices down to levels even lower than the wholesale prices at traditional repair shops, during the initial launch period.99 Yuan Quick Repair & Maintenance Gift Package.

NIO, Xpeng, and Li Auto: Equip traditional luxury car features in domestic new energy vehicles, with performance surpassing fuel-powered luxury cars, priced at less than half, and also offer free maintenance, charging, and battery swap benefits.

Although these companies belong to different industries, technologies, and consumer groups, they have four common points:

"Internet user mindset," transforming into a mobile Internet O2O user enterprise.

Rapidly capture market share through aggressive price wars in the early stage.

Possesses three powerful core business elements: operational system, execution team, and strong capital.

The profit model is the same: the larger the user base, the lower the costs; the larger the user base, the wider the variety of products.

This time, the price war initiated by leading imported brands may be well-prepared, but whether they can integrate like the aforementioned companies remains to be seen.The transformation from "Internet user mindset" to an Internet O2O user-oriented enterprise still remains to be seen.

3. Analysis of ZhuanSu VisionTPU car film price war: What is the material cost, and is it profitable?

As a vertical information service platform in the plastics industry, Special Plastics World will start by analyzing the cost structure.The relationship between the production cost and market price of TPU car paint protection film helps readers understand its economic viability.

The cost of TPU (Thermoplastic Polyurethane Elastomer) film is mainly composed of four sections: raw materials, production processes, equipment depreciation and energy consumption, logistics, and management. The raw materials include polyols, isocyanates, and additives, which are significantly affected by international market fluctuations. The raw material cost for producing one ton of TPU film is approximately 30,000 to 50,000 RMB. When converted to a thickness of 0.1 millimeters, the raw material cost per square meter ranges from a few RMB to over ten RMB.

The production process uses extrusion, blow molding, or calendering technology. The energy consumption differences among these processes lead to cost differentiation, with the processing cost of one ton of TPU film being approximately 10,000 to 20,000 RMB, and the processing cost per square meter being a few to over ten RMB. Regarding equipment depreciation and energy consumption, the production equipment requires a large investment and has a long depreciation cycle, consuming a substantial amount of electricity and thermal energy. The cost for equipment and energy consumption per square meter is about a few tenths to one RMB. Logistics and management costs, which include storage, transportation, and personnel wages, are approximately a few tenths to one RMB per square meter.

Based on current production levels, the unit cost of TPU film is approximately 10 to 20 RMB per square meter, with the specific value influenced by production scale, regional differences, and technological level. Due to intense market competition, the selling price of TPU film is usually slightly higher than the cost to ensure profitability. At present, the market price is about 20 to 50 RMB per square meter, with price differences mainly reflecting variations in quality, thickness, and performance. In high-end application fields, special performance requirements lead to a significant increase in cost, while in ordinary applications, production costs are close to the lower end of the price range, resulting in a relatively small profit margin.

Compared to other materials, the raw material cost of PET film is as low as a few to ten RMB per square meter. The production process is mature and energy-efficient, but its elasticity and environmental resistance are not as good as TPU. PVC film is inexpensive, costing about ten RMB per square meter, but its environmental and performance aspects are controversial. High-performance elastic materials such as silicone film or thermoplastic elastomers (TPE) are priced similarly to or slightly higher than TPU, but they offer better weather resistance and elasticity. The core competitiveness of TPU film lies in its performance balance, offering both elasticity and wear resistance, while also having price competitiveness in certain application scenarios.

Taking TPU paint protection film as an example: the cost per roll of imported high-end base materials (such as Lubrizol and Argotec) is about 8,000 to 10,000 RMB. Korean-made mid-range materials cost about 4,000 to 5,000 RMB per roll, while domestically produced hybrid-process materials have ex-factory prices as low as 1,000 to 1,500 RMB per roll but offer less stable performance. For every 1 mil increase in thickness (e.g., from 6.5 mil to 8.5 mil), the cost rises by 20% to 30%. The cost of the blown film process is 5% to 8% higher than that of the cast film process, but the finished product has better uniformity. Among additional expenses, professional installation labor costs in first-tier cities are about 2,000 to 4,000 RMB, warranty and maintenance cost around 500 RMB, and marketing plus store operation costs are about 2,000 RMB per order. The total proportion of additional costs can reach 30% to 50%.

Mainstream TPU paint protection films in the market are divided into three categories: - Economic type (domestic mixed TPU, RMB 4,000 to 6,000), suitable for budget-conscious users but with average durability; - Mid-to-high-end type (imported TPU base material, RMB 8,000 to 15,000, with representative brands such as Llumar and 3M, offering stable performance and long warranty periods); - Luxury type (custom aliphatic TPU, above RMB 18,000, featuring outstanding anti-yellowing performance and mostly used for high-end vehicles). Consumers should note that low-priced products below RMB 3,000 may use inferior base materials or simplified manufacturing processes, resulting in limited protection.

4. Conclusion: Where is the Automotive Film Industry Headed in the Wave of Mobile Internet?

The current wave of mobile internet has arrived with unstoppable momentum."Didi" ride-hailing, "Meituan" food delivery, "Luckin" coffee, "NIO, XPeng, Li Auto" new energy vehicles, "Mao, Hu, Gou" quick repair and maintenance, all traditional industries will eventually be reshaped by the mobile internet, and the automotive film industry is no exception.

The manufacturing capabilities of domestic companies are no longer what they used to be. Numerous emerging domestic automotive film brands are approaching the core technology and production capabilities of top-tier imported brands, and have even surpassed them in new categories such as paint protection films and color change films. This might be the real reason why top-tier imported brands have initiated a price war.

The ultimate winner in the Chinese automotive film and the entire car beauty and decoration market remains uncertain. In a crisis, there are both dangers and opportunities. A group of traditional manufacturer brands, dealers, and stores will fall during the crisis, while a group of new manufacturer brands, operators, and stores with internet thinking will rise.

Who can be the first to integrate the mindset of mobile internet users and possess mobile internet capabilities?The Three Core Elements of O2O Business Operation: Who Will Become the King of China's Automotive Film Market!