Development status and Prospect Analysis of auto p

2020 auto parts industry development status and prospects analysis

in recent years, China's auto parts industry, with the support of major national projects and technology projects, has continued to strengthen technological research and innovation system construction through independent research and development, joint venture cooperation and the introduction of technical talents, and gradually achieved breakthroughs in core technologies in some fields. The independent innovation system of Chinese brand auto parts has initially taken shape. After years of development, most Chinese brand parts enterprises have strong manufacturing capacity and certain market competitiveness. The enterprise system management and modular supply capacity have been improved. Through differentiated multi-level development and concentric diversification, they have achieved rapid scale expansion and formed synergy among various sub industries. Domestic auto parts enterprises have the industrialization ability of passenger car and commercial vehicle parts system, parts and subsystems, and realize the full coverage of products. After years of development, China has formed six auto parts industry clusters in Northeast China, Beijing Tianjin Hebei, central China, Southwest China, Pearl River Delta and Yangtze River Delta. With the downward pressure on the auto industry continuing to increase, the overall development of the auto parts market is in good condition, showing a medium and high-speed development trend. Under the trend of globalization, domestic auto parts enterprises have accelerated their expansion and integration into the world's parts procurement system by means of mergers and acquisitions, overseas mergers and acquisitions, equity joint ventures, joint ventures and cooperation

in 2019, the pressure faced by China's automobile industry will further increase, and the production and sales volume and the main economic benefit indicators of the industry will show negative growth. Up to now, the top three provinces in the number of enterprises in China's automobile industry chain are Guangdong, Jiangsu and Shandong, of which Guangdong ranks first in the country with the number advantage of about 67000 related enterprises. In 2019, the production and sales of automobiles were 25.721 million and 25.769 million respectively, with a year-on-year decrease of 7.5% and 8.2% respectively. The decline in production and sales was 4.2 and 5.4 percentage points higher than that of the seven-year development in 2018. The production and sales volume continues to rank first in the world. The pressure of vehicle production and sales was transmitted to the parts industry, and the revenue and profit growth of parts manufacturers stagnated. At present, the global automobile industry is affected by the economic downturn, the trend of the new four modernizations of automobiles, and its own development cycle, and the growth rate of total production and sales has slowed down

as of June 2019, the national car ownership in the first half of 2019 reached 250million and 198million private cars. As of June, the car ownership reached 250million, accounting for 74.58% of the total number of motor vehicles, including 198million private cars (small passenger cars and micro passenger cars registered in the name of individuals). With the continuous development of new energy vehicle industry and the rapid growth of ownership, China's new energy vehicle parts industry has ushered in a period of rapid development

the performance of the automobile sector in 2019 was poor. Even though the valuation of the whole vehicle gradually rebounded, it was still at a historical low; The valuation of parts is better than that of the whole vehicle, but it is still hovering at the bottom of history; From the perspective of industry profitability, affected by the downturn in the auto market, the profit margin of the auto manufacturing industry continued to decline, but the range narrowed. The rebound in foreign capital allocation shows good expectations for China's auto market

electric vehicle parts mainly include three categories: electric drive system, power supply system and auxiliary system. Among them, electric drive system can be basically divided into motor central drive system and electric wheel drive system, including electronic controller, power converter, motor, mechanical transmission device, wheel and other core components. The central drive system of motor includes motor, reducer, differential, mechanical transmission device and wheel; The power supply system is mainly used to provide power, including power supply, energy management system and charger; The auxiliary system includes auxiliary power source, power steering system, navigation system, air conditioner, lighting and defrosting device, wiper and radio, etc

according to the analysis of the "China auto parts industry market panoramic survey and competition pattern analysis report" of the Research Report of Sinopharm Puhua:

I. the development characteristics of China's auto parts industry

(1) the transfer of production and R & D to emerging markets

the global auto parts industry is based on the development of the vehicle market. With the continuous growth of emerging markets represented by China, emerging economies have become the main growth region of vehicle consumption, thus driving the global production and R & D of auto parts to transfer to emerging markets. The compound annual growth rate of China's auto parts industry revenue in was 10.7%, much higher than 19% in North America and 4% in Europe, 3.5% in South Korea and 4.3% in Japan

(2) the continuous expansion of the industry scale and the gradual formation of industrial clusters

the rapidly expanding market space promotes the development of China's auto parts industry towards specialization, systematization and scale, and also provides broad development prospects for enterprises in the industry. With the expansion of the industry scale, China has gradually formed six auto parts industry clusters in the Yangtze River Delta, Bohai rim, Pearl River Delta, Northeast China, central China and southwest China. The cluster development of the industry is conducive to the refinement and specialization of the division of labor, making information transmission faster, logistics transportation easier to organize, and economic benefits can be effectively improved

(3) the relationship between vehicle enterprises and parts enterprises is developing in the direction of marketization

for a long time, the relationship between the whole parts (vehicle enterprises and parts enterprises) of China's automotive industry belongs to the subsidiary development mode, that is, parts are attached to vehicle enterprises. However, with the global economic integration and the increasingly fierce market competition, the speed of upgrading automotive products is gradually accelerating. In order to meet the market demand, automotive manufacturers need to constantly launch new models or use new components. The marketization of the integration and zeroing relationship has become the main development trend. On the one hand, the parts enterprises not only supply products, but also provide systematic solutions to the vehicle manufacturers, which requires the parts enterprises to deepen the early cooperation with the vehicle manufacturers in technology development. The auto parts enterprises with synchronous development ability can participate in the initial R & D process of customers' products and share R & D data with customers, so they can accurately grasp the market demand and occupy an advantage in the market competition of the auto parts industry; On the other hand, the global procurement of vehicle enterprises has broken the traditional integration and division of labor mode. Only by maintaining the leading technological innovation ability and product quality stability, can component enterprises enter the global procurement system of vehicle enterprises, so as to better integrate into the global automotive industry chain

(4) the characteristics of precision manufacturing are obvious

as an intermediate product that has maintained "double reduction" for 10 consecutive years during the preparation of cement mortar, automobile parts and components should fully cooperate with other functional parts and components during product assembly, and the requirements for precision and quality are very high, mainly including the requirements of apparent quality and internal quality. Table "1 turn" means Transformation: there are two measurement dimensions for the quality of products from traditional low value-added products to high-performance and high value-added products. One is the shape and dimensional accuracy of auto parts, and products of the same model should be highly consistent, which is related to the interchangeability and use function of auto parts during assembly. The other is the surface roughness and surface defects of auto parts, which will affect the appearance and use effect of products, It is also related to the brand image of terminal products. The internal quality is the quality of properties, including the strength of fusion joint, residual stress, orientation and density, related mechanical properties, thermal properties, etc., which is related to the stable play of the function of end products, and the realization of the accuracy requirements of auto parts fully reflects the precision manufacturing ability of enterprises

(5) parts upgrading to high-end manufacturing

there are a large number of auto parts enterprises in China. The long-standing problems in the industry are the generally small scale of enterprises, low R & D investment and insufficient product quality competitiveness. On the whole, the overall competitiveness of domestic parts enterprises is still far behind that of international giants. With the gradual maturity of China's automobile industry, consumers' requirements for the safety, comfort, beauty and other quality of automobiles are constantly improving, and vehicle manufacturers' requirements for the technical strength and management ability of parts supply enterprises are also more stringent. At the same time, domestic product quality regulations and policies are becoming more and more perfect. The development trend of the industry has prompted the parts enterprises to constantly upgrade and transform to high-end manufacturing, that is, to control costs through industrial automation, informatization and other technologies, while achieving the improvement of product quality, stability and technical content, so as to maintain sufficient competitiveness in the global automotive industry chain

(6) downstream customers have high stability

before supplying to downstream customers, auto parts manufacturers usually have to accept strict qualification examination from downstream customers, and there is a high entry threshold for entering their supplier system. Enterprises not only need to obtain the internationally accepted quality management system certification in the automotive industry, but also need to pass the customer's comprehensive review of the company's quality management, technical level and other links before becoming candidate suppliers. Before the mass production of relevant supporting parts, it is also necessary to perform a strict product quality advance planning procedure (APQP), and undergo repeated trial assembly and verification. Once the cooperative relationship between the two parties is established, downstream customers will generally steadily expand their procurement volume. As new suppliers may have risks in product quality and delivery speed, which will affect the overall production plan of downstream customers, downstream customers will generally avoid large economic losses caused by frequent replacement of suppliers after determining the list of suppliers, and maintain a relatively stable cooperative relationship with suppliers

II. Market scale of China's auto parts industry

chart: market scale of China's auto parts industry in

(data source: China Research Institute for advanced technology)

in recent years, the development speed of the market scale of China's auto parts industry has stabilized. In 2017, the size of China's auto parts market was 3.74 trillion yuan. Driven by the steady growth of the auto industry, the overall development of the auto parts market tends to be good. In 2019, the market size of China's auto parts industry will reach 4.28 trillion yuan, an increase of 7% year-on-year

as national policies continue to tilt towards the field of new energy vehicles, the market share of electric vehicles will continue to increase in the future, and the market prospect of electric vehicle parts industry is broad. By 2020, the market scale of China's electric vehicle parts industry will exceed 100billion yuan