China’s national economy has kept steady and fast growth since 2000. From 2001 to 2007, the automobile industry was in the golden age. In 2001, the automobile production volume and sales volume reached 2.2469 million sets and 2.3585 million sets respectively in China. The production volume and sales volume of automobiles was 8.7486 million and 8.7915 million by 2007, at an annual growth rate of 25.43% and 24.52% respectively. Despite the global financial crisis since 2008, the domestic automobile industry has enjoyed a rapid growth because of the supportive government policies. From 2008 to 2016, the production volume of automobiles increased from 9.1897 million sets to 28.1188 million sets, at an annual growth rate of 15.00%. The sales volume also increased from 9.3805 million sets to 28.0282 million sets, at an annual growth rate of 14.66%.

Development Status of Automobile Components and Parts Industry in China

The vehicle production and sales volume and car ownership in China keep increasing, and the procurement of auto parts go global. As a result, the automobile parts industry has made great progress. Its development status is as follows:

Since China joined WTO, the automobile parts industry has rapidly expanded. The industrial production value grew at a CAGR of 23.10% from 2001 to 2015, higher than 18.86%, an average annual growth rate of the gross production value.

Due to the support from industry policies and global integration of auto parts procurement, the export scale of automobile parts in China is rapidly expanding. The main export countries and regions are the U.S., Japan and the European Union with developed industry. The export value of China auto parts increased from USD 28.691 billion in 2007 to USD 64.573 billion in 2016 with the annual average growth rate of 9.43%.

However, the production value of China auto parts industry accounts for about 30% of the gross production value of the automobile industry, far lower than that of developed countries (60%-70%). The main reason is that the domestic automobile parts enterprises mostly focus on products with low added value. On one hand, in terms of key components and parts, they are poor in the techniques of designing, developing and manufacturing and the supply chain management, finding it hard to meet the high requirements of vehicle matching in transnational automobile enterprises. On the other hand, they lack technological strengths such as synchronous

development of vehicles and system integration of spare parts. Thus, the imported key parts cannot be replaced on a large scale by the local ones in a short time.

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The post Overview of China Automobile and Components & Parts Industry first appeared on CRI Report.

By analyzing the location of headquarters of large parts suppliers, it is found that most of the Top 100 suppliers are Japanese enterprises, amounting to 28 (29 in 2013 and 2014, 30 in 2015 and 2016). the U.S. follows, which owns 22 suppliers (25 in 2013 and 2015, 23 in 2014). There are 16 German enterprises (21 in 2013, 19 in 2014 and 18 in 2015 and 2016).

Apart from Japanese, American and German enterprises, there are 6 South Korean, 4 French and 5 Canadian enterprises in this year’s Top 100 and there are also 5 Chinese enterprises. Sweden, Spain and Mexico own 2 enterprises respectively in the ranking while India, Holland, Italian, Luxembourg, Singapore, Norway and Switzerland has only 1 respectively.

Among the Japanese enterprises, DENSO (Top 4) ranks the first, the operating revenue of which was USD 36,184 million in last year, and it ranked the second in last year. Among the German enterprises, Bosch ranks the first with operating revenue USD 46.5 billion in last year. There are 2 German enterprises in the Top 3 and the other one is ZF, the operating revenue of which was USD 38.465 million in last year. Lear (Top 9) ranks the first among American enterprises, the operating revenue of which was USD 18,558 million in last year.

In the secondary group, Faurecia has the best performance among French enterprises and ranks 8th and the rankings of Valeo, Plastic Omnium and Michelin have moved up this year. Last year’s operating revenue of Valeo was USD 17,384 million, ranking Top 10. Hyuandai-Mobis ranks Top 7 with operating revenue of USD 27,207 million, and among the six enterprises in the ranking, only Hyuandai Wia and Mando declined in operating revenue. Magna (Top 3) performed the best among the Canadian enterprises, and among the five Canadian enterprises in the ranking, ABC and Multimatic are newcomers in the ranking.

Reference:

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The post Analysis on Top 100 Global Automotive Parts Suppliers by Group first appeared on CRI Report.