Analysis on the Market Status and Supply Demand Balance of China's Auto Parts Industry in 2023; Supply in the High End Auto Parts Market Is Tight
China's auto parts are still in the stage of import dependence
The industrialization of automobile parts in China has mainly experienced five stages of development. At present, China is in the process of vigorously developing advanced, sophisticated technology and breaking the technological monopoly of foreign countries. Currently, China's core automotive components are still in the stage of import dependence.
China's domestic supply capacity of auto parts has gradually increased
With the expansion of the automotive market and the rapid growth of global procurement, China's automotive parts industry supply system has gradually improved, forming the world's largest industrial system with complete categories and complete supporting facilities. From 2021 to 2022, many listed large auto parts related manufacturers in China continued to be optimistic about and deepen the layout of the auto parts market. Representative enterprises include Junsheng Parts, Tuopu Group, Great Wall of China, Anjie Technology, Aotejia, Huagong Technology, Baolong Technology, Derun Parts, Yinlun Shares, Beidou Xingtong, Tuopu Group, etc.
China's auto parts demand needs to recover
According to the data disclosed by OICA statistics, from 2012 to 2021, the global and Chinese automobile production showed a fluctuating trend. Before 2019, the global and Chinese automobile production trends were basically the same, but in 2020, when the global automobile production significantly declined, China's automobile production maintained a small gap with 2019. From 2021-2022, China's automobile production rebounded somewhat. In 2022, China's automobile production will reach 27011000 units. From this perspective, the market demand for complete vehicle parts and accessories in China has rebounded.
From the perspective of the automotive maintenance market demand in China's automotive parts industry, according to statistics from the Ministry of Public Security, from 2010 to 2018, the growth rate of China's automotive ownership was higher than 9%, maintaining a relatively stable growth rate. By the end of 2020, the national car ownership had reached 281 million vehicles. By the end of 2021, the national car ownership reached 302 million vehicles, and there is a large market demand for car maintenance.
Based on the above situation of supply and demand for auto parts in China, China's domestic supply capacity has increased and demand is also gradually recovering. In terms of the international situation, since 2020, affected by Sino US trade frictions and the global spread of COVID-19, exports have stagnated, further increasing the pressure on business operations. In 2021, the shortage of automotive semiconductors began to spread more widely. Many well-known automotive companies around the world were affected to varying degrees by the shortage of automotive semiconductors. Some models experienced production delays, production reductions, and even production stoppages. As of 2021, China's semiconductor self-sufficiency rate is 15%, of which the self-sufficiency rate of automotive chips is less than 5%, and the import rate of automotive chips is as high as 90% or more. The autonomous and controllable ability of the automotive chip industry chain supply chain needs to be enhanced. To sum up, China's mid and low end components are basically in a state of supply and demand balance, while high-end components are in a situation of oversupply.