The auto parts industry has great potential for development

According to the statistics of the China Association of Automobile Manufacturers, the output value of 10,761 auto parts enterprises from January to August 2009 reached more than 750 billion yuan, and it is expected that the growth of the parts and components market will reach 20% in 2010, and there will be more than 100 cars in China. Component key industrial parks will benefit at the same time.

Surging sales of spare parts

In recent years, the sales revenue of vehicle manufacturers has increased by an average of 28.75% annually, while the sales revenue of auto parts companies has increased by an average of 36.82% annually, which is higher than the industry average. The rise in aggregate indicators has outlined the continuous expansion of China's spare parts industry. By 2009, China's auto parts industry has become a leader in the international market. Many internationally renowned large companies have spotted the potential of China's auto parts market, built factories in China and expanded their business.

It is inevitable that the parts and components industry will become big

Although the production of complete vehicles in China has developed rapidly in recent years, the parts and components industry has lags behind and is not commensurate with the title of “the world’s largest automobile production and consumption country”. Internationally, the proportion of investment in complete vehicles and parts and components should be around 1:3, while the current situation in China is 1:0.3, which is only 1/10 of the international level. With the continuous growth of China's vehicle production and sales, it is inevitable that the parts and components industry will become bigger and stronger. At present, China's auto market is in a period of growth. The market demand for urban and rural markets is huge, and the fundamentals for the development of the auto industry have not changed.

Three characteristics of auto parts investment this year

● Industrial mergers and acquisitions form expansion capabilities

● New energy vehicles will bring new investment opportunities in the parts and components industry

● Venture capital and PE will increase investment in auto parts industry

Expected market focus

First, the remanufacturing of the entire parts and components industry brought about by new energy sources. The concept of new energy does not mean that energy changes, but the entire drive system will undergo great changes.

Second, the changes brought about by the light weight of automobiles will bring about changes in the structure and materials of many components.

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