Analysis of China's Auto Parts Industry

Auto parts usually means all parts and components except the frame of the car. Among them, a part is an indivisible single component. A combination is a combination of parts that perform a job (or function). With the steady development of China's economy, the consumption level of residents is gradually improving, and the demand for auto parts supporting new cars is increasing.

auto parts

At the same time, with the increase in the number of cars in China, the demand for parts and components in the aftermarket such as car maintenance and car modification is gradually increasing, and the requirements for parts are also getting higher and higher. China's auto parts industry has achieved good development results in recent years.

my country's auto parts industry development status

1. Industry introduction: wide range of applications and various types of products

Auto parts usually means all the parts and components except the frame of the car. Among them, a part is an indivisible single component. A combination is a combination of parts that implement a movement (or function). A component can be a part or a combination of parts. In this complex, one component mainly realizes the predetermined action (or function), while the other component only plays auxiliary functions such as connection, fixation, and guidance.

Cars are generally composed of four basic parts: engine, chassis, body, and electrical equipment, so the products of various departments of auto parts are derived from these four basic parts. According to the characteristics of components, it can be divided into engine system, power system, transmission system, suspension system, braking system, electrical system and others (general supplies, loading tools, etc.).

2. Panorama of auto parts industry chain

The upstream and downstream industries of the auto parts manufacturing industry mainly refer to related supply and demand industries. The upstream of the auto parts manufacturing industry chain mainly includes markets that provide raw materials such as steel, non-ferrous metals, electronic parts, plastics, rubber, wood, glass, ceramics, and leather.

Among them, steel, non-ferrous metals, electronic components, plastics, rubber, and glass are in high demand for raw materials. Downstream includes auto vehicle manufacturers, auto 4S stores, auto repair shops, auto parts and accessories companies, auto refitting factories, etc.

The impact of the upstream on the auto parts industry is mainly from the perspective of cost. The price changes of raw materials (including steel, aluminum, plastic, rubber, etc.) are directly related to the manufacturing cost of auto parts products. The downstream impact on auto parts mainly lies in market demand and market competition.

With the development of science and technology, the upgrading of automotive products is accelerating, and the auto parts industry needs to accelerate technological innovation and provide products that meet market demand. Otherwise, facing the cut off of supply and demand, it may lead to structural imbalance and product backlog.

3. Policy advancement: policy plans are implemented frequently to promote the healthy growth of the industry

Because there are about 10,000 auto parts required for each car, these parts also cover other industries and fields, and there are great differences in technical standards and production methods. At present, the national policies related to the auto parts manufacturing industry are mainly distributed in the relevant national policies of the auto industry. On the whole, the state has promoted the coordinated upgrading of my country's auto industry, encouraged research and development, manufactured high-quality, high-tech independent brand cars, and maintained huge support for new energy vehicles. The announcement of a series of automobile industry policies undoubtedly put forward higher requirements for the parts industry. At the same time, in order to promote the active and healthy development of my country's auto parts industry, relevant departments in my country have promulgated industry-related policy development plans in recent years.