What is the development trend of auto parts industry

China's auto parts market policy history

China's auto parts industry has mainly experienced four stages of development. After 1978, especially after entering the 80's, China comprehensively implemented the reform and opening up policy, carried out industrial and enterprise management system reform, and introduced foreign advanced technology. Starting from the "Sixth Five-Year Plan", according to the national unified planning, the parts and components enterprises carried out planned technological transformation, and at the same time introduced technology and key equipment according to the needs. To the "14th Five-Year Plan" period, auto parts and components key tasks to make up for short boards, forging long boards, to create a safe and controllable industrial chain system, to strengthen the construction of innovation capacity system, to attack the industrial short board problems, to resist the risk of "neck".

China's auto parts market development characteristics

Driven by the policy, China's auto parts industry as a whole is booming. But in 2020 in the new crown pneumonia epidemic under the impact of global automobile production fell sharply, auto parts suppliers sales revenue decline; thanks to China's effective control of the epidemic, strong domestic market demand, international and domestic double-cycle and promote automobile consumption and other policies to effectively promote, the new crown pneumonia epidemic on China's automobile sales impact is relatively small and quickly recovered, the impact of China's auto parts industry suffered relatively small. China's auto parts industry suffered relatively little impact. Crisis breeds change and opportunity, 2020 industry elimination, industrial fusion, integration intensified, head enterprises gradually highlighted, digitalization in the whole industry chain accelerated penetration. The development of China's auto parts market presents four relatively significant features.

China's auto parts prices and market size to maintain the growth trend

From the point of view of China's auto parts development status quo, automotive electronic components and other raw materials are very dependent on overseas imports, the field of electronic components, price increases are more pronounced, due to the core producers from Japan and South Korea, the difficulty of exporting and production difficulties Suddenly increased, directly leading to the components and therefore a large-scale price increases. mcu prices rose more than 30%, while mlcc, resistors, silicon, panels and LED chips and other prices rose 1-2 times, the current stagnation of overseas greatly influence the normal operation of the domestic market. Auto parts prices are mainly affected by the cost of raw materials as well as market supply and demand, in general, in the short term, all types of auto parts market prices will continue to remain at a high level.

Then from the performance of China's auto parts industry operating income, in recent years by the car market sales downturn, since 2018 China's auto parts industry slowed down, the annual revenue of parts and components enterprises in 2018, the phenomenon of decline. 2020 auto parts manufacturing industry operating income reached 3.63 trillion yuan, a year-on-year increase of 1.55%. However, under the impetus of the policy, the operating income of China's auto parts industry still maintains the growth trend. After preliminary statistics 2022 auto parts manufacturing industry operating income of 3.88 trillion yuan, an increase of 3.63%.

China's auto parts scale is expected to exceed 4.8 trillion yuan in 2028

Benefiting from the development of the vehicle industry at home and abroad and the expansion of the consumer market, the domestic auto parts industry has shown a good development trend. In the next few years, the auto parts industry will end the period of rapid growth, more toward the steady development.

Despite the cooling of the auto consumer market under the influence of the epidemic, the strong support from the policy level has solidified the foundation for the development of the auto parts industry. The industry's long-term positive momentum remains unchanged, with technological innovation, China's domestic parts and components supporting system gradually aligned with the world, China's auto parts industry will continue to maintain a good development trend. Forward-looking forecast, to 2028, China's auto parts industry, the main business income will exceed 4.8 trillion yuan.

For more research and analysis of this industry, please refer to "China Auto Parts Industry In-depth Research and Investment Strategy Planning Analysis Report" by Foresight Industry Research Institute

.