Findings on the Development of China's Auto Parts Industry

Held by a famous and professional e-commerce platform called Gasgoo, the activity about "the top 100 of the most competitive automotive part suppliers in 2010" conducted a comprehensive analysis on competition situation of China's auto parts industry. This activity was designed to reveal market development and changes in China's auto parts industry, and explore some suppliers who have long-term competitiveness in this relatively complex market.

The most important feature of this activity was that there was an extensive involvement of auto parts buyers. There was a total of more than 3,000 Chinese and foreign hosts as well as purchasing and technical experts involved in the selection. And more than three hundred procurement and technology executives became judges in the final phase. After a detailed investigation, the organizers summarized five major findings on the development of this industry.

Firstly, when compared to the vehicle, the technical level of China's auto parts is more close to the international advanced level. To some extent, it is due to the efforts and contributions made by the multinational auto parts companies in China. And compared with multinational automobile companies, they invest more in the research and development. They set up more than 100 technical centers, established specialized R & D teams, trained technical personnel, and developed the new technology according to the needs of automobile enterprises.

Secondly, in the latest five years, the overall development of China's domestic companies is faster than that of multinational enterprises in China. And those domestic auto parts companies have greater opportunities for development in the next five years. This situation is mainly resulted from the following three reasons. One is that the rapid development of China's local brands of vehicles plays a considerably leading role in the parts and components enterprises in China. The second is that the global sourcing in the international market has greatly improved the development of China's local parts enterprises in the first two years. The third one is that the international automobile companies start the localization development, and the purchasing system requires more efforts on the development of the local parts enterprises.

Thirdly, in next five years, this field will gradually accelerates the pace of integration. And enhancing the competitiveness is the crucial element for the survival and development of the component companies.

Fourthly, the Chinese government makes the greatest effort to promote the new energy vehicles at a worldwide level, in particular the development of electric vehicles. This measure will bring a lot of development opportunities to the automotive electrical and electronic parts industries.

Fifthly, a large number of traditional Chinese auto parts enterprises need to re-evoke the entrepreneurs' spirit.