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Cost breakdown analysis of automotive wiring harness in China   The highest cost in terms of proportion is the material cost, followed by labor cost.   Chart 1: Direct material expenses have the highest proportion in total costs. (Zhejiang Commercial Securities Research Institute)   From the perspective of the automotive industry, the main production materials for wire harness industry are wire, terminals,  sheaths, sealing components, etc., involving materials such as copper, rubber, plastic, etc. The price is mainly determined by the  market price of commodities such as copper, stone oil, natural rubber, and other chemical materials. According to the 2021 annual  report of HuGuang Group, the direct material cost accounts for the highest proportion of the cost, reaching 76.64%.   The automotive wiring harness industry is a typical labor-intensive industry, requiring a large number of workers to engage  in operations such as inserting, wiring, wrapping, and rolling during the harness manufacturing process.  Therefore, labor costs are relatively high in the wiring harness industry. According to HuGuang Group’s 2021 annual report, direct labor costs account for 13.43%.   Figure 2: Automotive wiring harness assembly line (Zhejiang Commercial Securities Research Institute)   The cable cost is the highest, with the core material