Analysis of the current auto parts industry in China

At present, auto parts industry is around the safety, environmental protection and energy conservation, this industry become “ low carbonization, information technology and intelligent”, the product structure, production methods, service model and industry chain.

In the context of cross-border and integration, grasp the development of the parts industry,follow the development trend of the industry is essential. The following is the 2017 China’s auto parts industry status analysis:

Independence innovation system initially formed

With the flourishing motor industry, China’s auto parts industry scale and capability of production and research gradually improve. In the one hand, the international component giants “localization” strategy to promote the effective promotion of China’s auto parts product features and manufacturing level; on the other hand, China’s parts and components enterprises to speed up technological upgrading, and actively participate in global competition, brand impact is expanding.

“China’s auto parts industry development report (2015 ~ 2016)” (hereinafter referred to as “Blue Book”) data show that in 2015, China’s auto parts enterprises to achieve the main business income of 321.17 billion RMB, the total profit of 244.67 billion RMB, showing Sustained steady growth trend.

In addition, the initial formation of independent innovation system is also the development of China’s parts industry in a major bright spot. 86 companies accumulated R & D investment of 13.24 billion RMB, an increase of 4.89% to 12.598 billion RMB in 2014. Powertrain, China’s own brand gradually mastered the direct injection, turbocharged, high pressure common rail technology; transmission, independent brands have gradually realized the AT, DCT, CVT and other transmission independent research and development, some products has been successfully put on the market.

Still face the lack of core technology challenges

“Although the auto parts industry has made great progress, but the whole industry is still have many problems of a large quantity, small scale and small level of industrialization. Such as electronic control and other key components cannot be independent research and development, part of the basic raw materials, Equipment, equipment were reply on imports.

As automatic transmission industry, most of China’s automatic transmission market is occupied by a joint venture and foreign-funded enterprises, independent market share of small market share. Although DCT, AT, CVT and other automatic transmission are related to research and development and production, but some of the core components still need to rely on imports, has been listed product reliability remains to be improved.

At the same time, independent parts enterprises adopt mergers and acquisitions, joint ventures and cooperation, to accelerate the development of globalization, in the “going out” process; parts enterprises are also facing fierce competition and challenges.

Emerging parts industry to accelerate the pace of development

New energy vehicles and intelligent network of vehicles as a new industry, is gradually becoming an important part of the automotive industry, the relevant parts of the industrialization process gradually accelerated in the product technology, reliability and other aspects of a significant increase. Such as new energy auto parts, the basic formation of the power battery, motor, electronic control system-based industrial chain. Data show that in 2015, China’s power lithium battery production reached 15.45GWh, an increase of 277.67%.

At the same time, intelligent network of automotive parts and components are also rapidly developing. Independent parts enterprises and IT companies have accelerated the layout, trying to seize the technology and market.

With the improvement of safety standards and requirements and the improvement of enterprise technology, driving support related technology has been rapid development. A small number of independent brands and universities began to provide small-scale ADAS parts for commercial vehicles, such as Neusoft Group, Tsinghua University. Many international enterprises have announced the initial time to launch automatic driving car from 2020 to 2025, we can see that the future ADAS products will gradually become the standard car. China’s vehicle companies also attach great importance to ADAS system market applications.