Analysis of Future Development Trend of China's Auto Parts Industry


In a certain period of time, China's auto parts industry is facing problems such as exchange rate wars and inflation. To solve these problems, we must not only improve our own technological level, and raise the value-added of our products to resist the problems of exchange rates and inflation. We must also focus our attention on the future, grasp the future trends of auto parts, and make sure of the flaws. Analyze the future development trend of China's auto parts industry.

First, the acceleration of international industrial transfer, active mergers and acquisitions.

In a certain period of time, the sales of most auto parts companies in China are relatively low. Compared with multinational giants with sales of up to ten billion US dollars, the scale of Chinese auto parts companies is obviously small.

China’s manufacturing exports have always been known for their low prices. Large multinational corporations have effectively reduced production costs and explored emerging markets. They not only transferred large-scale production and manufacturing links to low-cost countries and regions, but also extended the scope of transfer to R&D, design, and procurement. In terms of sales, sales and after-sales services, the scale of transfer has become larger and higher. In 2010, many multinational parts and components companies have already established plants in China through joint ventures.

For Chinese parts and components companies to have a place in the future international market competition, the quickest way is through mergers and reorganizations to form large-scale component enterprise groups. The merger and reorganization of parts and components companies is more urgent than that of whole vehicle companies. If there are no large parts and components companies, the costs will not come and the quality will not go up. The development of the entire industry will be extremely difficult.

In the context of the small size of China's spare parts enterprises, weak strength, and lack of research and development capabilities, if the parts and components industry wants to develop rapidly, it must speed up mergers and reorganizations to form economies of scale.

Second, auto parts enterprises actively implement systematic development, modular manufacturing, and integrated supply. The characteristics of industrial cluster development are obvious.

From the perspective of the development of the auto parts industry in the world’s major automobile-producing countries, the development of auto parts industry clusters is in an equally important position with the development of the auto industry. To be bigger and stronger, we must develop into an industrial cluster. This is an auto component. The strategic choice of the industry.

Vehicle companies use platform strategies for product development, systematic development, modular manufacturing, and integrated supply, and have gradually become the development trend of the auto parts industry. At the same time, the clustering characteristics of the auto parts industry have become increasingly evident.

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