Gaining Momentum: Recent Trends in China's Automobile Parts Market

As a key link in the global production and supply chain of auto parts, China now houses almost all the world-leading auto parts manufacturers and is itself a huge exporter of home-made auto tires, glasses and audio products. The scale of China’s auto parts and accessories industry approached RMB1.5 trillion in 2010, with the CAGR of 30% in the past five years.

We observed that major competitors in China’s auto parts market post the following development momentum respectively:

• Multinational auto parts companies: Monopolistic core technologies, intensive localisation and active M&As
• Local manufactures: Development polarisation, accelerating industry integration and leading companies’ speeding up internationalisation
• Local entire auto part supporting enterprises: Transition from providing support to the group to seeking independent development

Looking forward, after-sale market with its huge needs will become the main growth engine of auto parts market. And with the increase of potential overcapacity risks, the industry will enter an accelerating integration stage.