Auto Parts Industry Development Status and Trend

Auto parts refer to all parts and components except the car frame, where the part refers to a single component that cannot be split, and the part refers to a combination of parts that realize a certain action or function. As the upstream of the automotive industry, the auto parts industry is an important part of the automotive industry, and the automotive industry to promote each other, common development. Under the background of economic globalization and market integration, with the continuous improvement of vehicle ownership in recent years, the demand for parts in the market after automobile maintenance and automobile modification has also expanded, and the performance requirements for auto parts are getting higher and higher. As the foundation of the automobile industry, the auto parts industry is an important factor supporting the sustainable and healthy development of the automobile industry.

1, China's auto parts industry development overview

At present, the market concentration of China's auto parts manufacturing enterprises is relatively low, and there are many smaller enterprises in the low-end market. At first, smes can obtain a certain profit space by virtue of cost and price advantages, but with the intensification of market competition, the profit space is gradually compressed, and many small suppliers face the risk of being eliminated. However, large manufacturers in the industry can continue to give play to the advantages of independent innovation, gradually expand market share in the market with high-end high-quality products, accelerate the pace of mergers and acquisitions, integrate the industrial chain, and continue to expand to overseas markets. Overall, China's auto parts industry has a trend of further increasing market concentration.

As China's parts industry gradually realizes structure optimization and product upgrading, China's auto parts enterprises have grown from 12,090 in 2015 to 14,018 in 2020, and the main business income in 2020 totaled 36,31.065 billion yuan. The compound annual growth rate of industry revenue is 14.58%, and the whole industry is in a state of rapid growth. In 2018, due to the overall downturn in the industry, the main business income of the auto parts industry declined. However, with the recovery of China's economy and the expansion of domestic demand in the auto industry, the main business income of the industry increased in 2019 and 2020, increasing by 5.98% and 1.55% respectively year-on-year. Reversing the previous downward trend.

In addition, under the influence of the trend of the global configuration of the automobile industry chain, the export market of auto parts and accessories in China has also shown a growing trend. From 2017 to 2020, the export value of China's auto parts and accessories increased from 210.112 billion yuan to 227.703 billion yuan. In 2020, the auto parts and accessories industry was affected by the new coronavirus epidemic, and there was a slight decline compared with the previous year, but the decline was not large compared with the vehicle industry, mainly due to the lack of supply capacity of overseas auto parts and accessories suppliers, overseas import demand for domestic auto parts is still strong, and the domestic car ownership is large. After-sales demand is rising steadily.

Due to the years of competitive development and experience accumulation in China's auto parts industry, the production scale of enterprises, product development capabilities and technological innovation capabilities have been greatly improved.

In recent years, due to the impact of the "National three elimination", "National six new emission standards" and the governance of non-compliant vehicles in the early stage, the phased centralized procurement and replacement of vehicles have been driven, and market demand has been released. Secondly, the "Medium and long-term Development Plan of the Automobile Industry" and the regional automobile industry development plan launched by Zhejiang, Guangdong and other provinces and other policies to promote the guidance, to further promote the product technology upgrade of auto parts enterprises and auto parts enterprises to increase investment in important products in line with the national strategic development plan, and actively layout. In addition, after years of development, domestic enterprises continue to achieve breakthroughs in key technologies, and some enterprises have initially possessed the strength to compete with foreign manufacturers, whether in service or technology. With the continuous improvement of the layout of the automobile industry, the competitiveness of China's auto parts industry continues to increase, and make full use of its own advantages, seize the window of industrial chain transfer and procurement globalization, and deeply participate in the international automobile industry chain. China has gradually become an important area for the layout of parts giant enterprises, and the export amount of auto parts has steadily increased.

With the improvement of industrial concentration, China's auto parts manufacturing enterprises have gradually formed six industrial clusters, forming a cluster effect of the entire auto industry chain such as automobile manufacturing and spare parts manufacturing, which not only reduces transportation costs, but also helps to enlarge the scale advantage, laying a good foundation for the automotive industry to further expand the market size. The six industrial clusters, which include vehicle manufacturers and supporting industrial parks, are located in the Yangtze River Delta region, Southwest region, central region, Northeast region, Bohai Rim region and Pearl River Delta region, which are evenly distributed in all regions of the country. They are not only close to the consumer market, but also have the geographical advantages of exporting overseas. This layout is conducive to the sustainable and healthy development of China's auto parts industry, and gradually transition to the mature market stage of concentration and specialization.

2, the future development trend of the auto parts industry

As the automobile manufacturing industry enters a mature stage of development, Oems pay more and more attention to the production scale, professional division of labor and cost control of auto parts. The future development trend of the auto parts industry mainly has the following directions:

(1) Product integration and modularization: In order to improve the automation level and accuracy of the vehicle installation process, improve production efficiency, optimize the spatial structure of the vehicle, and improve the performance of the vehicle, auto parts are developed from a single component to an integrated and modular unit.

(2) High-end and refined products: With the continuous improvement of China's industrial strength, the production mode of auto parts has gradually developed from the original low-end extensive to high-end fine, and more and more domestic high-end products have begun to replace the original high-end products imported from abroad.

(3) Lightweight products, energy saving: at present, the huge number of cars in the world has increased the oil capital

Source consumption and vehicle exhaust emissions, resulting in global energy security and environmental protection issues, countries around the world have promulgated the corresponding laws and regulations and policies to advocate the concept of energy conservation and emission reduction, environmental protection. In this context, the realization of lightweight and energy-saving vehicles can reduce the consumption of oil resources, reduce exhaust emissions, and reduce the cost of consumers. The development of new energy vehicles is also a global consensus, the EU's public environmental protection emission reduction plan, agreed to the EU countries by 2035 to ban the sale of fuel vehicles, by 2050 to achieve carbon neutrality. China proposed at the 75th session of the United Nations General Assembly that China will strive to complete the carbon peak by 2030 and achieve carbon neutrality by 2060. Therefore, encouraging the development of new energy vehicles and low-energy, small-emission vehicles has become an effective way for the automotive industry to save energy and reduce emissions.

(4) Operation automation and intelligence: With the improvement of China's economic level and the improvement of labor compensation level, the labor cost of manufacturing enterprises will also increase correspondingly, and the original demographic dividend advantage will weaken. Therefore, improving the automation and intelligence level of enterprise operations and strengthening the control of enterprises over production, procurement, sales and transportation can effectively reduce enterprise operating costs and increase enterprise profits.