2008 Report on China's Auto Parts Industry
[2008-12-23 17:04:27]
After years of heady growth, China's auto industry produced 90.4 million vehicles in 2007, making China one of the major car producers in the world. The auto market was still expanding rapidly although there was a mild slowdown in the first half of 2008, with 51.7 million vehicles produced and 51.8 million sold, up by 16.71% and 18.52% respectively from a year ago.
Table: Output of Vehicles in China 1997-2008H1
Period Wagons Buses Cars Total
1997 66 44 49 159
1998 66 51 46 163
1999 76 51 57 184
2000 75 71 61 207
2001 80 83 70 233
2002 109 102 109 320
2003 123 120 202 445
2004 151 124 232 507
2005 151 143 277 571
2006 185 156 387 728
2007 230 179 495 904
2008H1 125 128 267 520
Unit: 10,000 units
China's booming auto market has provided opportunities for its auto parts sector to flourish. By the end of 2007, there had been 7,579 makers of auto parts and fittings, 72.3% of the entire auto industry in terms of the number of manufacturers. And their revenue from major business was RMB752.9bn, about 35.1% of the entire auto industry while the profit of RMB54.5bn, was 41%. As for ownership, most of them are private companies-5,137 makers altogether, about 67.8% of the total number, but their revenue was only 38.5%. By contrast, although there were only 1,120 foreign-owned carmakers, their revenue was RMB269.3bn, 35.8% of the total of the industry, while their profit RMB22.8bn, were all superior to those of China's homegrown companies.
Table：Categories of Auto Parts Makers in China
Manufacturers Numbers of Manufacturers Percentages Sales Revenues (RMB 100 M) Percentages
Private 5,137 67.78% 2,898 38.5%
Foreign-owned 1,120 14.8% 2,693 35.8%
State-owned 1,322 17.4% 1,938 25.7%
Total 7,579 100.0% 7,529 100.0%
Subsectors such as engines, chassis, tires, and auto electronics have been expanding rapidly in the recent years. As to trend of investment, the focus was on a few large categories of products. (i) Parts of engines. Here, makers of engine assemblies, pistons and piston rings, and radiators dominate, and investment is mainly made in engine assemblage and products belonging to electronic fuel injection systems. (ii) Parts of chassis. Gear boxes, gear wheels, breaking systems, and dampers play the major roles, and chassis assemblies attract the most investment. (iii) Nonmetal parts such as rubber, tires, and plastic products, and castings. (iv) Interior decoration of which air-conditioning, seats and backrest adjusters attract the most investment. (v) Parts of auto electric system.
In the competitive landscape, foreign-owned auto parts makers have entered into China one after another since China's accession to the World Trade Organization in 2001 and then China opened its auto parts sector completely. By the end of June 2008, automakers owned or partially owned by foreigners had accounted for more than 60% of the market in China. As for parts of cars (different from wagons, pickups, trucks and others), the market share of foreign-related automakers was bigger-perhaps over 80%. And their market share was even bigger for the sophisticated parts or fields. For example, foreigners accounted for as high as 90% of auto electronics and parts of engines. Multinational companies like Bosch, Denso, Delphi and Hyundai Mobis are the major players in China's auto parts market.
Foreign auto parts makers have brought formidable challenges to China's homegrown ones. So now Beijing is developing policies to encourage home auto parts makers to be more competitive through mergers and acquisitions (M&A) or by going public. As a result, a boom in M&A is on the way.
As for the layout of the sector, currently five major auto-part making regions have come into being in China. They are: Bohai Coastline, Yangtze Delta, Zhujiang Delta, Hubei province, and Mid & Western China. Among them Zhejiang Province has 1,279 auto parts makers, the most in China, and accounts for 16.9% of the auto industry in terms of the number of manufacturers. The top six provinces of China, again in terms of the number of manufacturers, are Zhejiang, Jiangsu, Shandong, Hubei, Shanghai, and Guangdong, which have 58% of China's makers in the auto industry.
And as for demand and supply, China's auto parts sector is able to satisfy 60% of the country's market demand in terms of variety of products, and 70% as for market in general. Here the supplies of labor-intensive and material-intensive products, such as windscreens, tires, fuel tanks, air-cleaners and bearings, are far beyond the market demand, so some of those products are for export, while the supplies of technology-intensive parts, including engines, automatic transmissions, electronic fuel injection systems, airbags, and ABS, are far behind market demand at home, and so the gap is filled mainly with imports.
Chapter One: Overview of China Auto Industry
1.1 Development Environment
1.2 Development Status
1.3 Size of Market
1.4 Manufacturers
Chapter Two: China Auto Segment Markets
2.1 Sedan
2.1.1 Size of Market
2.1.2 Trend of Development
2.2 MPV (Mini Passenger Vans)
2.2.1 Size of Market
2.2.2 Trend of Development
2.3 Pick-ups
2.3.1Size of Market
2.3.2 Trend of Development
2.4 SUV (Sports Utility Vehicles)
2.4.1 Size of Market
2.4.2 Trend of Development
2.5 Light Passenger Cars
2.5.1 Size of Market
2.5.2 Trend of Development
2.6 Light Trucks
2.6.1 Size of Market
2.6.2Trend of Development
2.7 Large- and Medium-sized Trucks
2.7.1 Size of Market
2.7.2 Trend of Development
Chapter Three: Overview of Auto Parts Sector in China
2.1 Overall Status
2.2 Main Features
2.3 Competition Landscape
2.4 Import and Export
2.5 Trend of Development
Chapter Four: Analysis of Auto Electronics Market in China
4.1 Status Quo
4.2 Size of Market
4.3 Competition Landscape
4.4 Niche Markets
4.5 Import and Export
4.6 Market Demand
4.7Trend of Development
Chapter Five: Analysis of Auto Engines Market in China
5.1 Production
5.2 Sales
5.3 Segment Markets
5.4 Import and Export
5.5 Major Manufacturers
5.5.1 Hafei Automobile Group
5.5.2 Dongfeng Automobile Stock Co., Ltd.
5.5.3 Kunming Yunei Power Co., Ltd.
5.5.4 Shanghai Diesel Engine Co., Ltd.
5.5.5 Weifu High-tech Co., Ltd.
5.5.6 Weichai Power Co., Ltd.
5.6 Trend of Development
Chapter Six: Analysis of Auto Chassis Market in China
6.1 Overall Status
6.2 Niche Markets
6.2.1 Auto Chassis
6.2.2 Axle
6.2.3 Main Retarder
6.2.4 Differential
6.2.5 Axle Shaft
6.2.6 Suspension
Chapter Seven: Analysis of Car Body Market in China
7.1 Overview of Car Body Market in China
7.1.1 Overall Status
7.1.2 Manufacturers
7.1.3 Production
7.1.4 Import and Export
7.2 Niche Markets
7.2.1 Car Lights
7.2.1 International Markets of Car Lights
7.2.2 China's Market of Car Lights
7.2.3 Features of China's Car Light Market
7.2.4 China's Import and Export of Car Lights
7.2.5 Trend of Development of China's Car Light Market
7.3 Car Seats
7.3.1 Overall Status
7.3.2 Supply
7.3.3 Business Operations
7.3.4 Import and Export
7.4 Airbags
7.4.1 Overall Status
7.4.2 Layout of the Sector
7.4.3 Market Size
7.4.4 Import and Export
7.4.5 Opportunities in Market
Chapter Eight: Executive Summary
1997-2008H1 Output of Vehicles in China 1997-2008H1
Comparison of Demand in Major Niche Markets of Auto Electronics in China
Joint Ventures of Auto Electronics in China
Industrial Targets of China's Auto Electronics During the 11th "Five-Year Plan"
Competition Landscape of Auto Electronics in China
Average Prices of Car Lights in China 2000-2007
R&D of China's Major Car Lights Makers
Demand for Different Axles in China 2007-2010
Comparison of Models of Purchasing Axles by Large- and Medium-sized Bus Producers in China
Industrial Layout of Suspension Parts for Passenger Vehicles in China
Productions of Auto Engines in China 2005-2007
Sales of Auto Engines in China 2005-2007
Business Operations of Auto Engine Sector in China 2005-2007
R&D and Reserves of Diesel Engines of over 10 liters in China
R&D of China's Homegrown Diesel Engines for Heavy Trucks
China's Production Capacities of Auto Engines 2006-2008
Sales Volumes of Light Passenger Cars in China 2000-2006
Market Sizes of Light Passenger Cars in China 2006-2010
Sales Volumes of Light Trucks in China 2001-2007
Market Sizes of Light Trucks in China 2006-2010
Sales Volumes of Medium- and Large-sized Trucks in China 2007-2010
Sales Volumes of Medium- and Large-sized Buses in China 2007-2010
Sizes of Global Auto Electronics Market
Sizes of China's Auto Electro
