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Aluminum die-casting parts for Chinese automobiles

May 24, 2025

Amid evolving global trade policies, automotive manufacturers from the UK, U.S., Canada, and other regions are increasingly sourcing precision aluminum die cast components from China. Despite recent tariffs imposed by the U.S. and EU on select Chinese metal products—such as steel and certain aluminum semi-finished goods—automotive-grade aluminum die castings remain strategically advantageous due to competitive pricing and favorable tariff classifications. Leading suppliers like KETUO are experiencing surging demand as automakers prioritize cost-optimized, sustainable supply chains.

Why China’s Aluminum Die Casting Sector Thrives in a Shifting Trade Landscape

1.Tariff Resilience: While U.S. Section 232 tariffs (25% on steel, 10% on aluminum) and EU anti-dumping measures impact raw material imports, finished aluminum die cast automotive components often face lower trade barriers. This enables OEMs to leverage China’s 30-50% production cost savings compared to North American and European foundries.

2.Localized Production Strategy: To circumvent cross-continent logistics costs and import fees, global automakers are adopting a "produce where you sell" approach. China’s status as the world’s largest automotive market—and a hub for EV manufacturing—makes local sourcing critical. Suppliers like CFS Foundry enable clients to bypass international shipping entirely by serving China-based assembly plants directly.

3.Sustainability-Driven Demand: Aluminum die casting’s minimal material waste (vs. investment casting or forging) aligns with automakers’ net-zero goals. With lightweighting essential for EV efficiency, die-cast battery housings, structural components, and e-drive parts now account for 60% of KETUO factory’s automotive orders.

Market Outlook: Industry analysts project a 40% increase in China-sourced automotive die cast orders by 2030, fueled by:

Post-pandemic supply chain rebalancing toward APAC regions

Rising EV adoption requiring complex, high-volume die cast parts

China’s mature ecosystem of ISO/IATF-certified foundries with rapid prototyping capabilities

KETUO: Your Partner in Tariff-Optimized Automotive Solutions

With 15+ years of expertise, KETUO delivers custom aluminum die cast components engineered for:

Tariff efficiency: Components classified under HS 8708 (auto parts) vs. raw material codes

Local compliance: REACH, RoHS, and China VI emission-standard-ready alloys

Cost predictability: Closed-loop recycling systems stabilizing pricing amid volatile LME rates

Expand Your Automotive Sourcing Agility

In an era of trade uncertainty, dual sourcing from China’s die casting leaders provides supply chain resilience. Contact KETUO factory to explore how our China-based production can reduce your landed costs while meeting stringent OEM quality benchmarks.