Auto parts industry industry in-depth analysis of 2021 auto parts industry industry development prospects forecast


As the foundation of automobile industry, auto parts industry is a necessary factor to support the sustainable and healthy development of automobile industry.
In particular, the current automotive industry is vigorous, independent development and innovation in full swing, but also need a strong parts system as a support.
Need spare parts for vehicle independent brands and technology innovation base, auto industrial independent innovation and produces strong impetus to the development of vehicle industry, they are mutual influence, interaction, there is no vehicle independent brands, strong parts system research and development innovation ability is difficult to spurt, without strong parts system support, independent brands continue to do your will.

The intensifying price war in the vehicle market is also eating into the profit margins of the parts industry, with OEMs increasingly demanding to reduce costs and ensure profits.
Although the output value of China’s auto parts industry is large, it does not play a scale effect, so the integration and reorganization of the auto parts industry is imperative.
It can be predicted that China’s auto parts industry will enter the stage of accelerated integration in the next few years. On the one hand, scale effect can be realized through horizontal and vertical integration among domestic enterprises.
On the other hand, through overseas mergers and acquisitions to achieve the optimal allocation of production, market and other resources in the global scope and obtain advanced technology and management experience.
The auto parts industry has formed six auto parts industry clusters in Northeast China, Central China, Beijing and Tianjin, Yangtze River Delta, Southwest China and Pearl River Delta.
Industrial cluster makes the division of labor more refined, more specialized, easier to achieve scale, information more concentrated and faster, the pace of technological innovation faster, logistics easier to organize, and economic benefits significantly improved.

The auto parts market size is expected to break 500 billion yuan in 2019, with a compound annual growth rate of 13.61%.
In the domestic market size of trillions of vehicles, the auto parts industry accounts for 1/3. Through the car ownership, owners’ annual cost for maintenance and their respective future growth rates, love analysis estimates that the domestic auto parts industry will maintain 13.61% annual compound growth rate in the next 2-3 years, and will exceed 500 billion yuan in 2019.

China auto parts market concentration will be lower than the United States market.
The model of domestic auto parts industry practitioners refers to the giant American companies, but because the gross profit margin is lower than the level of the American counterparts, so the head company needs a longer time to stand out, coupled with the number of domestic auto repair plants is 2.5 times that of the American market, which determines the concentration of the domestic market is lower than the level of the American counterparts.

The number of motor vehicles in China is about 192 million, and the number of motor vehicle drivers is about 205 million. China has entered the era of transport vehicles with great strides.
However, what deserves the attention of the society and the need to take effective measures is that there are data showing that the child injury and death rate caused by road traffic accidents increased by 81% from 1985 to 1999.
Every year, more than 18,500 children under the age of 14 die in traffic accidents in China. Every day, at least 19 Chinese children under the age of 15 die in road traffic accidents.
Seventy-seven people were injured as a result of road traffic injuries.
The mortality rate of Chinese children in traffic accidents ranks first in the world, 2.5 times that of Europe and 2.6 times that of the United States.
According to the Blue Book of China Automobile Society released by the Institute of Sociology of Chinese Academy of Social Sciences, 75.66% of cars in China have not installed child safety seats;
39.95% of parents had let their children sit in the passenger seat;
43.12% of parents chose to hold their children in the car;
10.05 percent of parents believe airbags are effective in protecting children.
Chen Hui, author of the Blue Book of China’s Automobile Society, said these are the main causes of major injuries to children in traffic accidents.
Chen suggested that government departments improve relevant laws and regulations, including specific conditions for the use of child safety seats and punishment regulations, and increase publicity efforts.

As auto parts industry competition intensifying, large auto parts industry merger integration between enterprises and capital operation, excellent auto parts industry enterprises at home and abroad more and more emphasis on the analysis of the industry market research, especially in the current market environment and the further research of customer demand trends, in order to occupy the market ahead of time, to obtain the first mover advantage.
Because of this, a large number of excellent brands rapidly rise, gradually become the industry leader.

Post time: Jul-06-2021