The growing demand from international buyers for Chinese auto parts has positioned the domestic industry for significant growth. Under the national "Eleventh Five-Year Plan," there has been a strategic focus on enhancing the overall competitiveness of the auto parts sector, which has opened up numerous opportunities for China's automotive industry. As a result, China is now playing a leading role in the global auto parts market, especially in this new phase of development.
However, the industry faces considerable challenges. Rising raw material costs have placed increased pressure on production expenses, while fierce competition from multinational giants makes it difficult for many local companies to remain viable. Additionally, the strict quality certification systems, rigorous product support requirements, and high technological barriers imposed by major automakers pose serious challenges for domestic suppliers.
Currently, major global automotive corporations have set up joint ventures in China, and their supply chain partners have also entered the market. Companies like Delphi, Visteon, Bosch, and Denso have established nearly 500 local parts manufacturers through joint ventures, majority stakes, or full ownership. This expansion reflects the deepening integration of foreign players into China’s automotive supply chain.
According to available data, in the commercial and passenger vehicle sectors, most components are still sourced from local manufacturers. However, in the premium car segment, particularly in mid-to-high-end models, over 80% of parts—sometimes exceeding 90%—are supplied by joint ventures or wholly-owned subsidiaries of foreign companies. In areas such as automotive electronics and engine components, foreign firms dominate, accounting for more than 95% of the market share.
This trend highlights both the opportunities and the challenges facing China’s auto parts industry as it strives to compete on a global scale. While the industry has made impressive progress, it must continue to innovate, improve quality, and build stronger partnerships to maintain its position in an increasingly competitive environment.
Changshu Enzyme Biotechnology Co., Ltd. , https://www.nmnglutathione.com