As U.S. auto sales decline, the Chinese automobile market as the world auto market, "a brother." At present, China's automobile market has become the car brand gathered consumer market. As the world's major car producing countries and consumer markets, China's auto parts industry also developed rapidly.

It recently held the Eleventh International Electrical Products Expo's report shows that rapid growth of Chinese auto parts market, the scale of 1700 from 2000 billion to 1 trillion yuan this year will reach 1.4 trillion yuan. Since joining the World Trade Organization, China's auto industry assets increased year by year, has now become an important economic pillar industry, and auto parts industry is the basis for the entire automotive industry has become a key decision factor in the success of the automotive industry.

Insiders pointed out that China's automobile production and sales although it has become a global power, but the irrational industrial structure, technological level, self-development capacity is weak, imperfect consumer policy issues are still outstanding, energy, environmental protection, urban transportation and other constraints become increasingly apparent. Parts enterprises with foreign investment continues to suppress, the Chinese auto parts industry is extremely critical.

Investment potential

China's huge market potential and cheap labor is attracting more and more international auto parts enterprises. It is reported that China has emerged a number of the auto parts export oriented enterprises. In 2009, China's auto export value reached 19.7 billion U.S. dollars. Including auto parts, car accessories and body products accounted for 43% of exports, an increase of 51%. As the vehicle falling profits, rising raw material prices, coupled with overall level of China's auto parts industry, the product has reached international standards, procurement of foreign auto giants have parts made in China. According to statistics, more than 5,000 auto parts enterprises in more than 1,200 foreign-invested enterprises. End of last year's top 100 global automotive suppliers, at least 70% of business in China.

Datong Securities chief strategist HU Xiao-hui that the output from the car to see, by 2010 China will exceed 17 million in the next few years will maintain rapid growth. Began in 2007, China's auto industry, big leap, in fact, indicates that the industry will nurture the next 10 years, great opportunities will be related to the auto parts investment focus. From the auto parts industry, automotive lithium batteries in the future should be long-term concern.

Independent innovation is the key

Although China's auto parts industry has made considerable progress in recent years, but from the global market, China's auto parts industry scattered, industry concentration is not high, the vast majority of small-scale enterprises have neither sufficient operating funds, and lack R & D capability, can not develop the advanced products that meet market demand. These problems not only hampered the healthy development of China's auto parts industry, but also on the vehicle manufacturing industry produces a considerable constraint.

There are reports that China is in transition, some parts of industrial parts manufacturers as the "Little Giant", a huge development opportunities, car parts industry in the industrial chain will become the next number of years one of the most promising industries. But with the increasingly fierce market competition, the competitive parts of China increasing pressure, in order to govern parts industry scattered, chaotic and poor economic problems so that parts enterprises to reduce costs, bigger size, must use the power of the market economy, take advantage of economies of scale effects. Chinese Vice Premier Zhang Dejiang recently visited the Fourth China International Auto Parts Expo had emphasized to enhance the level of design and manufacture of automotive components, to promote the development of China's auto industry to enhance the level of China's automobile industry is essential. To strengthen the auto parts industry, infrastructure, accelerate the achievement of key parts of technical autonomy, self-development of the Chinese auto industry to enhance the capacity and international competitiveness. In response, the industry, from the long-term development, parts enterprises should also increase through technological innovation and R & D level, for the early access to high value-added, high-tech product areas, such as car navigation systems, shock absorbers, brakes , engine, battery, air conditioning, compression and other fields.