Analysis of the basic situation of the auto parts industry: China's auto parts industry has achieved good development achievements

The upstream of the auto parts industry includes steel, plastic, rubber and other production raw materials, and the downstream mainly targets the supporting market of OEMs and the after-sales service market. There are many industries involved in the upstream

1. Industrial chain structure of auto parts manufacturing industry The upstream of the auto parts industry includes steel, plastic, rubber and other production raw materials, and the downstream mainly targets the supporting market of OEMs and the after-sales service market. There are many industries involved in the upstream, especially steel and other industries occupy an important strategic position in the national economy. The development of the parts industry can effectively drive the development of such industries; from its downstream, the auto parts industry is an important component of the auto industry In part, the auto parts industry is the foundation. Without a strong parts industry as the foundation, there will be no independent, complete and internationally competitive auto industry. 2. The correlation between the auto parts manufacturing industry and the upstream and downstream industries and the value-added space of the industrial chain From the perspective of upstream industries, the price of raw materials produced in the parts industry is mainly determined by the market prices of bulk commodities such as steel, oil, and natural rubber. In recent years, due to the frequent fluctuations in the prices of iron ore, petroleum, natural rubber and other resource commodities, it has caused certain pressure on the stability of the production and operation of the domestic auto parts industry. From the perspective of downstream industries, benefiting from the development of the domestic and foreign vehicle industry and the expansion of the consumer market, the domestic auto parts industry shows a good development trend. The downstream customers of domestic parts suppliers are mainly domestic and foreign vehicle manufacturers and their parts suppliers, and the customer concentration is high. Therefore, parts companies are in a relatively weak position in the negotiation with downstream customers. However, for some parts suppliers with leading advantages in a certain market segment, their market position and technological advantages will help to enhance the market voice and bargaining power, so they have the ability to transfer costs downstream. 3. Value-added space and market development of the industrial chain of the auto parts manufacturing industry The cost of the auto parts manufacturing industry is subject to the upstream industry and its own management level, while the parts required by the downstream auto manufacturers mainly come from fixed suppliers. The largest buyer of auto parts is the auto parts dealer, which is also the main channel for auto parts sales. Profit margins depend on the industry status, competition structure and bargaining power of parts and components companies with downstream industries. A huge "automobile aftermarket" is entering a period of rapid growth, and the auto parts industry has broad prospects. 2. Market environment and influence of auto parts industry In order to further standardize the automotive aftermarket, improve the overall technology level of the automotive service industry chain, integrate resources from all parties to promote the development of automotive industrialization, and establish a national automotive service industry new technology and new product promotion platform, the National Automotive Service High-tech Industrialization Committee focuses on automotive beauty Decoration and supplies, automotive electronics. With the improvement of living conditions of our residents, automobiles have become a trend of life and an indispensable means of transportation. Although the country's macroeconomic conditions and regulatory efforts have changed in recent years, and there have been some fluctuations in the growth rate of my country's automobiles, the rigid demand for consumption in the passenger vehicle market still exists, and my country's passenger vehicle consumption will continue to rise steadily for a period of time in the future. The introduction of more incentive policies for the new energy auto industry in my country will stimulate the rapid increase in the demand for new energy auto parts, and new energy auto parts enterprises will develop rapidly. According to the China Automobile Industry Information Network, in May 2016, the production and sales of automobiles reached 2,064,900 and 2,091,700, a year-on-year increase of 5.01% and 9.75%. The market of the auto industry has not yet reached saturation, and its expansion will bring further growth of the auto parts industry. The popularization and application of network technology has had a profound impact on many traditional industries, especially after the State Council proposed the concept of "Internet +". In the field of auto parts, "Internet + parts" is also gaining momentum. Auto parts companies are working to integrate Internet e-commerce channels with traditional channels. 3. China's auto parts industry in recent years The growth rate of vehicle production and sales continues