Friday, January 4, 2013

Chinese Auto Parts Market will Maintain 20% Growth Rate in Next Five Years

Development prospects of China's auto parts industry are optimistic

Recently, the China auto parts industry annual meeting in 2012 was held in the Chinese auto parts manufacturing base in Hannan, Wuhan, more than 350 manufacturers from home and abroad unanimously were optimistic about the development prospects of China's auto parts industry at the development forum of China's auto body parts industry. From cost competition to the quality competition, the transformation and upgrading of China's auto parts is ushering in a new era. China's auto market has at least 10-20 years of rapid growth, but the auto parts service and after-sales service market will be a long-term, stable and a huge market.

Legacy Parts

China's auto market seems to have ushered in the era of micro-growth

In 2011, the Chinese auto parts sales value has exceeded 2 trillion RMB, which will remain more than 20% increase in the next few years. Scale output value of China's auto parts industry is expected to reach 2.5 trillion RMB in 2015. Since 2002, China's auto production and sales have maintained 10 years' rapid growth; the automobile industry has developed into a pillar industry of China's economy. In 2009, China's auto production and sales both exceeded 13 million, ranking first in the world. By 2011, China's auto sales exceeded 19 million, which ranked the highest in the world for three consecutive years. The data released by the China Association of Automobile Manufacturers shows that in the first 10 months of this year, China's auto production and sales have exceeded 15 million, after several consecutive years of rapid growth, the growth of China's auto market is slowing down, which seems to have ushered in the era of micro-growth. However, as part of the auto industry, the development prospects of the 2010 legacy body kit industry remain favorable. Dong Jianping, deputy secretary general of the China Association of Automobile Manufacturers, said that from January to August this year, the total industrial output value of China's auto parts manufacturing industry reached 1.44 trillion RMB, which is an increase of 15.5% over the same period last year, though slightly lower than 23.9% growth rate of the same period last year, but is higher than 12.6%growth rate of the industry.

China's auto parts industry will be facing competition in product quality in the future

Experts generally believe that in the next five years, China domestic parts market will maintain at least 20% average annual growth rate. However, businessmen at home and abroad being optimistic about the growth opportunities in the auto parts industry in China are not only in the market itself, but also the auto parts product upgrades and technical transformation. Zhao Guoqing, vice president of Great Wall Motor Company Limited, said after the cost and price competition, China's auto parts industry will be facing competition in product quality in the future. Future market structure is whose product quality is good, who occupy a large market share.

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