Development of auto parts industry

Development of auto parts industry
As the foundation of automobile industry, auto parts are the necessary factors to support the sustainable and healthy development of automobile industry. In particular, the independent development and innovation carried out in the automobile industry with vigour and vitality needs a strong parts system as support. The independent innovation of parts and components has a strong driving force for the development of the vehicle industry. They influence each other and interact with each other. Without the independent brand of the vehicle, the R&D and innovation ability of the strong parts system is difficult to burst out.
From January to December 2005, the total industrial output value of China's auto parts and accessories manufacturing enterprises reached 383,800,952 thousand yuan, an increase of 18.67% over the same period last year; The cumulative product sales revenue reached 375,265,815 thousand yuan, an increase of 20.21% over the same period last year; The total accumulated profit was RMB 21,462,002, which was 9.09% lower than the same period last year.

From January to December 2006, the total industrial output value of all auto parts and accessories manufacturing enterprises in China reached 539,704,996 yuan, an increase of 34.35% over the same period last year; Cumulative product sales revenue of 527,234,933 thousand yuan, an increase of 34.71% over the same period last year; The total accumulated profit was 32,605,652 thousand yuan, an increase of 46.79% compared with the same period last year; By the end of December 2006, the number of enterprises above designated size in the whole industry was 6,142.
From January to November 2007, the total industrial output value of all auto parts and accessories manufacturing enterprises in China reached 683,525,503 yuan, an increase of 37.34% over the same period last year; The cumulative product sales revenue reached 663,529,269 yuan, an increase of 37.45% compared with the same period last year; The total accumulated profit was 48,487,363 yuan, an increase of 68.61% compared with the same period last year; By the end of November 2007, the number of enterprises above designated size in the whole industry was 7,171.

From January to October 2010, the total profit of the auto parts industry is still growing, but the growth rate is slowing down. The import and export volume also increased, but the import products were mainly high-profit, high-value-added and high-tech products such as transmission and engine parts, while the export products were mainly labor-intensive and resource-consuming products with low entry barriers and thin profits, such as tires and electronic instruments. The downstream vehicle industry has experienced excess capacity in a certain period of time. Although there was an unconventional and rapid growth in 2010 under various stimulus policies of the state, the growth of production and sales slowed down in 2011, and the pressure of excess capacity increased. Affected by this, the parts industry may face greater profit pressure in the second half of the year. The main problem facing the industry is that the upstream and downstream are squeezed at both ends and the industry faces double pressure. The parts industry is squeezed at both ends and lacks the bargaining power for the upstream and downstream. Upstream raw materials are mainly steel, rubber, plastics, fabrics, etc., whose prices are ultimately determined by the prices of steel, oil, natural rubber and other commodities. Auto parts enterprises can only avoid risks by judging the price trend of upstream commodities. At the same time, the downstream vehicle manufacturers are mostly large enterprises and groups, which are in a strong position in the interest game with the parts manufacturers and have strong negotiating ability, and can transfer the cost pressure to the auto parts industry. Therefore, the parts are actually in a "sandwich" position squeezed at both ends.

In 2011, the output value of China's auto parts sales exceeded 2 trillion yuan and will continue to grow by more than 20% in the next few years. It is expected that the output value of China's auto parts industry will reach 2.5 trillion yuan by 2015. Since 2002, China's automobile production and sales have maintained a rapid growth for nearly 10 years, and the automobile industry has developed into a pillar industry of China's economy. In 2009, China's auto production and sales both exceeded 13 million units, ranking first in the world. By 2011, China's auto production and sales exceeded 19 million units, ranking first in the world for three consecutive years.
With the increasing competition in the auto parts industry, mergers and acquisitions and capital operation among large auto parts enterprises are becoming more and more frequent. The outstanding domestic auto parts production enterprises pay more and more attention to the research of the industry market, especially the in-depth study of the development environment of enterprises and the change of customer demand trend. Because of this, a large number of domestic excellent auto parts brands rise rapidly, gradually become the leader in the auto parts industry, see "China auto parts Manufacturing industry in-depth market research and investment prospects forecast analysis report"!

Data from the Ministry of Commerce shows that foreign capital controls the vast majority of the market share of auto parts, and the sales revenue of domestic parts only accounts for 20%-25% of the whole industry. Auto parts manufacturers with foreign capital account for more than 75% of the whole industry, and wholly-owned enterprises account for 55% of these foreign suppliers. Sino-foreign joint ventures account for 45%, and local parts are mainly used in self-owned brand cars, with a low market share. In automotive electronics and engine parts and other high-tech fields, foreign capital market share is as high as 90%, among which, in the output of electric injection system, engine management system, ABS, airbag, automatic transmission and other core parts, foreign enterprises account for 100%, 100% and 91%, 69%, respectively.

It is a global trend for auto parts manufacturers to break away from vehicle manufacturers and form specialized parts groups. Almost all the world-renowned automobile and parts enterprises have established joint ventures or wholly owned enterprises in China, and the number of imported technology joint ventures has exceeded 1,000. A number of domestic automobile and parts enterprises with high technology content, good benefits and large scale have gradually grown up. As the international automobile industry begins to implement the "global procurement" strategy of spare parts and the international multinational automobile enterprises implement the localization strategy, there will be a huge gap of spare parts in the domestic market. By 2010, China's domestic output value of auto parts will reach about 700 billion yuan.
In a certain period, although the overall global economy is down, according to the actual procurement practice in the past four to five years, the results of Chinese procurement are not as optimistic as predicted by a large number of companies, and almost more than 80% of the companies did not reach their purchase volume and cost reduction targets. With the appreciation of RMB and the decline of export tax rebate rate, Chinese procurement is facing greater pressure, international buyers have shifted their eyes to Vietnam, India, Thailand, Australia and other countries and regions. From the above point of view, China's auto parts industry will accelerate growth under the current financial crisis.