As the quality of Chinese auto parts improves, and pricing levels stay competitive, foreign demand will rise.
(PRWEB) November 07, 2012
The Auto Part Manufacturing industry in China has been bolstered by the fast-growing Automobile Manufacturing industry. China's accession to the World Trade Organization in 2001 also facilitated the development of the automobile parts and accessories market by encouraging an open and rational market structure. And in 2009, the Chinese government launched a series of measures to boost automobile sector growth. In 2012, industry revenue is expected to total $347.3 billion, reflecting annualized growth of 22.6% in the past five years.
The Auto Part Manufacturing industry in China has a very low market share concentration level. Many manufacturers operate on a small scale and are privately owned. The majority of these lack substantial capital, technologies and employees, and only produce single products and spare parts. The low concentration level also reflects the diverse nature of the industry's products. Firms tend to focus on particular parts or markets, and the majority of enterprises manufacture single products. Only some larger firms, like Wanxiang Group, Hyundai Mobis, and Shanghai Huizhong Automotive Manufacturing, produce a wide variety of automobile parts and accessories. Furthermore, the production of advanced automotive parts remains limited and products such as acoustic systems, automobile special-purpose ICs (integrated chips), high-end sensors, and microprocessors are imported from developed countries.
As the technology and the quality of Chinese products improves, and pricing levels remain competitive, demand from foreign countries will increase significantly, says IBISWorld. However, many manufacturers will suffer under the double pressure of rising raw material prices and the decreasing price of automobile parts and accessories from assembly plants.
For more information, visit IBISWorld’s Auto Part Manufacturing in China industry report page.
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IBISWorld industry Report Key Topics
Businesses in the Auto Part Manufacturing industry in China produce parts, accessories and components for motor vehicles, including motor vehicle bodies, mechanical and electronic components, and parts for electric motors. These manufacturers supply motor vehicle assembly and replacement part companies (i.e. the aftermarket).
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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