The Present Situation of China’s Automotive Parts Industry

As the foundation of the automotive industry, auto parts manufacturing industry is a necessary element to support the sustainable and healthy development of the whole industry. With the globalization of world economy, especially the globalization of auto parts purchasing, auto parts manufacturing industry has become more and more important.

During the period of the Eighth Five-Year Plan and the Ninth Five-Year Plan, with the introduction & transformation of auto parts company, and their separation from the vehicle OEM manufacturers, China auto parts industry developed step by step through reducing the cost, improving the technical skills and product quality, enhancing products competitiveness. As the improvement of technical and production management level, a batch of powerful domestic companies have formed in China, some of them have entered the global procurement system of international brand automotive OEMs. 

Sustained and steady growth of domestic economy, rapid development of automotive market, increasing procurement of international buyers and support from national policies bring an excellent opportunity for domestic auto parts industry. According to the statistics of China Association of Automotive Manufacturers, the main revenue of automotive parts industry in China increased from 0.38 trillion in 2005 to 3.21 trillion in 2015.

However, compared with the international advanced peers, because of the lower-tech concentration and disadvantaged place in industrial chain, domestic auto parts industry still has an important feature of low market concentration. At present, the automotive parts companies generally have low pricing capacity. The automotive parts industry in China started later than the vehicle industry, with a less technical accumulation; products  are mainly concentrate on raw material-intensive and labor-intensive products, involving the safety, environmental protection, comfort and other areas of subdivision, China's own-brand auto parts companies and foreign manufacturers still have some big gaps.

News resource:askci.com