China Auto Parts Industry
2 min readChina’s Auto Part Industry Report
Together with the development of China’s economy，relatively rapid growth has been maintained in China’s auto part market in the recent years.Currently，there are about 5000 large part enterprises in China，whereas 15%of these enterprises get a monthly profit of 50 million yuan.Part cost takes up over 70%of the total auto cost；therefore，the development of auto part industry directly influences the automotive industry development.Only continuously increase in auto part sales revenue certainly can a boom in China’s automotive industry be ensured.Auto part，as a sub-branch of automobile industry，contributes a lot to the development of China’s auto industry.
After entry into WTO，China’s automotive industry encounters quite a lot globalimpact，as foreign auto part manufacturers are attracted by the broad market in China and accelerate their steps into China’s market.At present，foreign invested auto part enterprises have accounted over 500 in China.A market share from transnational part manufacturers has exceeded 20%.Facing such fiercely completion，China’s auto part industry is in urgent need of improving the backward situation of sma1l scale and low concentricity.
Four Types of China’s Auto Part Manufacturers
China’s auto part manufacturers can be divided into the following four types：the first is part plants affiliated to large automotive groups.Depending on state owned parent groups，these plants are accustomed to China’s traditional plan production mode and deviates from market orientation in price mechanism.The secondis state-owned part manufacturers，most of which are acquired due to long-term poormanagement.The third is private companies，most of which are developing quickly and shoulder the future of China’s auto part industry to some extent.The fourth is sma11 factories.Due to the old management system and low-level quality guarantee system，these factories can hardly exist，not to mention develop.Most likely they wi1l be out of the market or be acquired in the near future.
