What are the opportunities for auto parts in the domestic market?

Opportunity 1: the high growth of domestic automobile market

"China's demand for the quantity of the car in the next ten years will maintain an average annual growth rate of 13% - 15% of the rate, compared with the world automobile power, China's auto market has a rapid growth in a relatively long period of time, this is probably from 2009 to 2023, in the span of 15 years, this is a a very good opportunity for the development of all the parts for domestic enterprises."

There is a special national situation in our country, and our income gap is larger than those of the automobile powers. The size of the income gap will play a vital role in the popularity of durable consumer goods. The smaller the income gap, the shorter the popularity of durable consumer goods, and vice versa.

A relatively large income gap, China determines that the popularity of the automobile speed is relatively slow, the automobile market in China will maintain sustained growth for a longer period, it also won a relatively long time of development in a certain period of time is still relatively weak competitiveness of enterprises with independent brands.

Opportunity two: the pace of internationalization of domestic automobile industry

"In 12th Five-Year, the state will energetically promote the internationalization of the auto industry and encourage the auto enterprises to go out. And with the internationalization of the vehicle factory, it will also play a very good pulling role for the independent parts and components enterprises in China, "Xu Changming said.

"The selling point of our car products and the rapid growth of the consumers in a certain period of purchase point of high degree of agreement. In a certain period, the fastest growth of sales volume of automobile products is South America, and the growth of Asia and Africa market is also fast. And the people of these countries are more inclined to lower the price of automobile products. At the same time, as the country actively promotes the internationalization of the automotive industry, China will soon become an automotive powerhouse. Under such a big background, parts enterprises will also usher in new opportunities for development.

Opportunity three: the rapid development of Autonomous Vehicle Enterprises

"A new change is taking place in China's automobile market, that is, the two or three line market, especially the three line market, is becoming the main growth point and supporting point for the development of Chinese automobile industry in the future. The three line market consumers for foreign cars is not so sensitive, economic applicability instead they pay more attention to the car, and affected by the Chinese tradition, have their own preferences on the vehicle shape, according to these characteristics, the independent brand car in which has more development advantages."

With the gradual strengthening of domestic independent brand enterprises, it will also promote the rapid development of domestic spare parts enterprises. At the same time, the domestic independent brand enterprises are facing the challenge. One of the challenges is that the cost advantage of independent component enterprises is being weakened. With the rising of the price of production factor, the cost of independent component enterprises is increasing gradually. As a result of the continuous expansion of the scale and the continuous development of the R & D, the cost of the wholly foreign-owned and joint venture parts enterprises has been decreasing.