Auto Parts Meets the Challenges of Opportunity

High Growth of Chinese Auto Market

The next decade, China's demand for cars will remain in the average annual growth rate of 13% -15%, compared to the vehicle power on the world, there is a relatively long period of rapid growth in China's auto market, this time probably from 2009 -2023 years, the span is about 15 years, this is a good opportunity for the development of auto parts of the domestic enterprises. China has its own specific national conditions, our income gap compared to those car powers. The size of the income gap will play a crucial role in the popularity of consumer durables speed. The income gap is smaller, the shorter the time the popularity of consumer durables, and vice versa. The income gap is relatively large, determine the popularity of cars in China is relatively slow speed, and thus China's auto body parts market will maintain a longer period of sustained growth, which also own brand is still relatively weak for competitive enterprises win a relatively the long development time.

Internationalization of China Automobile Parts Industry

During the twelfth five-year period, China will vigorously promote the internationalization of the automotive industry, the auto companies are encouraged to go out. With the internationalization of the subaru car parts OEMs, it will also play a good role in boosting China's own parts enterprises. Worldwide automotive products sales grew fastest in South America, Asia, Japan and South Korea outside the African market growth soon. And the people of these countries, more emphasis on the inexpensive automotive products. At the same time, as the country is actively promoting the automotive industry in the international road, China has become the vehicle power will be just around the corner, in this context, the parts enterprises will also usher in a new development opportunities.

Rapid Development of autonomous auto Parts Companies

China's auto parts market is undergoing a new change, that is, the second and third tier markets, especially in third-line market is becoming a major growth point and strong point of the future development of China's automobile. Third-line market consumers to foreign luxury car is not so sensitive to the contrary, they pay more attention to the economic suitability of the car. With the domestic independent brand enterprises gradually powerful, it will also boost the rapid development of the domestic parts enterprises. Domestic independent brand enterprises ushered in the opportunity at the same time, it is also facing challenges. One of the challenges is the cost advantage of the independent parts enterprises being undermined. With the rising prices of production, the cost of the independent parts enterprises will improve gradually. Parts enterprises and wholly foreign-owned and joint venture due to the continuous progress of the constant expansion and research and development, but the costs continue to decline.

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