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Development Tendency of Chinese Automobile Spare Parts Industry 2017-2021

Development Tendency of Chinese Automobile Spare Parts Industry 2017-2021

1.International industry transition is accelerating, accelerating M&A activities

In a long period, most automobile spare parts suppliers sold products with low price. Comparing with multi-national giant retailers with billions of trunover, Chinese automobile spare parts enterprises' scales are too small. Chinese exporting manufacturers are always famous for low prices. In order to effectively reduce the cost of production and expand new markets, large multi-national enterprises not only transfer manufacturing processes to low labor cost countries, but also expand this range of transition to R&D, design, purchase, marketing and after-sales service. The transferring scale is getting larger, and the level is getting higher.

Till 2010 there were already many automobile spare parts suppliers who built factories in China in form of joint venture or other way.

If Chinese automobile spare part suppliers want to occupy a place in international market competition in the future, merging and regrouping to form large-scale parts enterprise groups is the best method. The merging of automobile accessory suppliers is more urgent than merging of whole automobile industry. if no large-scale automobile spare parts suppliers show up, the cost cannot reduce, the quality cannot be improved, the development of the whole industry will be very difficult. Under the background that automobile accessory suppliers are small-scaled,  weak, lack of research and development ability. Therefore, if the auto spare part industry wants to develop quickly, it must accelerate merging and build size effect.


2.Automobile spare parts suppliers positively implement systematically developing, modular manufacturing, integrated supplying, accelerate cluster development in automobile spare parts industry.

From the inspection of the process of the automobile accessory industry of main automobile manufacturing countries worldwide, the cluster development of auto spare parts industry is as important as automobile industry. In order to become stronger, they must develop to an industrial cluster, it is a strategic choice of automobile accessory industry. 

The finished automobile enterprises use platform strategy, systematic development, modular manufacturing, intergrated supplying in product development, which becomes the future tendency of automobile spare parts industry. Meanwhile, the feature of industrial cluster shows up in auto spare parts industry. 

3.The globalization of the purchasing auto spare parts will become a trend, but China will still focus on exporting and internationalization in a period.

With the change of organization structure in automobile spare parts industry, more and more finished automobile factories will implement global purchasing of auto spare parts. But Chinese great scale manufacturing, low price and high quality won't change in a short period, so Chinese automobile spare parts industry will still focus on exporting and internationalization.

In a certain period, International purchasing agents become more and more rational and practical about purchasing in China, through selecting and training potential core suppliers; increasing the integration of logistics; strengthening the communication with factories belong to foreign capital enterprises in China, develop their interests in exporting; dispersing the purchasing, comparing with other new markets to decide the purchasing partners, to push the purchasing process in China.

According to the analysis, International purchasing agents become more and more careful with purchasing in China. But in the future decade, exporting and internationalization will still be the main point of Chinese local auto spare parts manufacturers. The main reasons are:

1)Automobile spare parts industry is an international industry, Chinese automobile spare parts suppliers will surely enhance their international developing speed, some enterprises that got the benefits of international purchasing have sent out positive signals;

2)For Chinese spare parts enterprises, especially those assorted parts suppliers , the competition becomes more cruel, internationalization is one of the way out;

3)With these years’ fast development, related assorted manufacturers have reached one-billion scale, they already got the economic strength of international expanding;

4)Foreign capital and joint capital enterprises will increase exporting too, which will make China the true center of manufacturing, then form a positive industry circle.


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