Auto parts industry has huge market potential and independent brand suppliers will welcome development opportunities.

In recent years, the growth of the car is higher than the market expectations, the amount of insurance has exceeded 200 million in advance for 2-3 years. It is predicted that 2019 will surpass the United States and become the largest country in the world. Restricted by various resources, China’s car ownership is unlikely to reach the level of moderately developed countries, with a peak of 280 vehicles per 1,000 people. By then, if China’s population is kept at 1 billion 400 million, the number of cars owned by the whole country will reach 390 million.
With the rapid development of China’s auto industry, the increase of car ownership and the expansion of auto parts import market, the auto parts industry in China has developed rapidly, and the growth rate is higher than that of the whole vehicle industry in China. In the end of 2011-2017, the size of the global auto parts market expanded from 9 trillion and 900 billion yuan to more than 12 trillion yuan, of which the scale of China’s spare parts industry rose from 2 trillion yuan to 3 trillion and 800 billion yuan, and zero, according to the forecast analysis report on the deep Market Research and investment prospects of the China auto parts manufacturing industry. The potential market potential of the component industry is huge.
The development time of China’s spare parts enterprises is relatively short. It is basically from the low technical content and the more marginal parts and components. It relies on a relatively single product and a small number of customers to develop. The value of the single vehicle is low in the early development and the market share is scattered.
With the rapid development of China’s automobile industry, the auto parts manufacturing industry has also achieved rapid development. The internal competition of the auto parts industry in China is very fierce, mainly by the threat of foreign enterprises, the low technical level and weak supporting capacity of Chinese domestic enterprises. In recent years, some important parts of the domestic leading enterprises have been acquired by foreign capital, and the infiltration of foreign capital has shifted from large enterprises to some small and medium-sized spare parts enterprises. The massive invasion of foreign capital is threatening the development of independent brands, and the auto parts enterprises are facing serious threat of survival.
According to statistics, foreign capital accounts for 60% of China’s auto parts market. The expert estimate of the car parts industry is up to 80%, and the market share of foreign capital control is up to 90% in the key parts of automotive electronics such as high and new technology products, engines, transmission and other core parts. Nowadays, multinational companies are not only satisfied with the wind and rain in the high-end market, but also extend their antennae to the low end market, which makes the independent parts enterprises lose their final territory and complete the overall occupation of the spare parts industry.
With the domestic consumption upgrading, the strong rise of independent brands and the increasing trend of international integration, we should lay down the distribution of the dips and seize the growth opportunities for the suppliers of high quality parts and components in the different sectors of the industry. Since 2015, with the gradual promotion of the market share of the independent brand passenger car market, a new round of domestic substitution is opened, and the independent brand parts supplier also ushered in more supporting opportunities.
With the rapid development of the automobile market, China’s automobile industry has become the biggest cake in the world automotive industry. While the cake is getting bigger and bigger, China’s auto parts enterprises also usher in an outbreak period. China’s auto parts manufacturing industry is expected to achieve an annual growth of more than 20% in the next five years.
As the demand for new cars continues to drive passenger car sales, the aftermarket will become a new growth engine for the spare parts industry. “Those who get spare parts get the world.” The National “Twelfth Five-Year Plan” of the automobile spare parts industry pointed out that we should speed up the realization of the autonomy of the key parts of the automobile industry. Therefore, in the next 5 to 10 years, the automotive parts industry will be one of the most promising industries in China, will maintain a high growth rate.

Post time: Aug-01-2018
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