The domestic auto parts industry has ushered in a golden period of development.

For the development prospects of the auto parts industry, Liu Wenting, a wealth researcher who was interviewed by the Securities Daily, said that on the one hand, auto parts are the upstream of the automobile industry and will directly benefit from the development of the automotive industry. In the context of the rapid development of intelligent electric vehicles, the automotive industry is ushering in major changes, whether it is the introduction of new models or the iterative speed of cars are significantly accelerated, while the strong support of superimposed policies, China’s intelligent electric vehicle penetration continues to rise. On the other hand, China has achieved curve overtaking in the field of intelligent electric vehicles, and the independent automobile brand has developed rapidly. With the continuous improvement of the technical level and innovation ability of China’s auto parts enterprises, the domestic auto parts industry has ushered in a golden period of development.

In this regard, Yuan Huaming, general manager of Huahui Chuangfu Investment, said in an interview with the “Securities Daily” reporter that the performance of the auto parts sector is relatively strong this year. Because this year is the year of “steady growth,” with the support of policy guidance, automobile consumption has increased, and the demand for upstream auto parts has also been boosted. At the same time, this year, the domestic new energy resources automobile industry continued the rapid development momentum, led to the domestic auto parts field of technological innovation, a number of high-quality auto parts enterprises are expected to stand out, and form a global competitiveness. In addition, the auto parts sector after the adjustment at the beginning of the year is more full, the valuation also has a margin of safety and attractiveness.
From the performance point of view, Flush data shows that as of the closing on August 8, a total of four listed companies in the auto parts sector took the lead in disclsing the interim report. Among them, Hua’an Xinchuang and Lizhong Group achieved year-on-year net profit growth in the first half of this year, up 5.45% and 0.54% respectively. Excluding the companies that have already disclosed the interim report, there are 73 companies that disclose the mid-report performance forecast, and 24 companies have pre-performance in the first half of this year, accounting for 32.88%.
On August 4th, China Passenger Car Association released data on new energy passenger car market in July. It is estimated that the wholesale sales volume of New Energy Passenger car manufacturers was basically unchanged from June’s 570 thousand units, an increase of about 120% year on year.

According to statistics from the China Association of Automobile Manufacturers, the production and sales of new energy vehicles were 617 thousand and 593 thousand respectively in July, up 1.2 times year on year. The production and sales of new energy resources vehicles soared, driving up the demand for auto parts. Major auto parts companies have increased in the field of new energy resources vehicles layout. Auto part companies are looking to cash in the growing demand for new energy vehicles in China and the resultant growth opportunities by ramping up manufacturing operations.