Looking at the Breakthrough Path of Chinese Auto Parts from the Reconstruction of the Global Industr
1. Market status: growth slows down but resilience stands out
1. Export scale and growth rate
In January-February 2025, China's auto parts exports reached US$14.78 billion, a slight increase year-on-year, continuing the low-speed growth trend of single digits in recent years. This growth rate is significantly slower than the 9.1% export growth (US$88.4 billion) in 2023, but remains stable overall.
Structural characteristics: The export of parts and components is mainly to developed countries (such as the United States), while the export of complete vehicles is concentrated in developing countries, reflecting China's dual role in the global automotive industry chain - both providing high-value-added parts to mature markets and exporting complete vehicle products to emerging markets.
2. Pressure from industrial chain transfer
In recent years, international automakers have accelerated the shift of parts production bases to low-cost regions such as Mexico and Southeast Asia, resulting in the pressure of order diversion for China's parts exports. For example, the North American market has reduced its dependence on the Chinese supply chain through the "nearshore outsourcing" strategy, further intensifying competition.
2. Growth drivers: New energy and globalization
1. Explosion of demand for new energy vehicles
Under the wave of electrification, the "three-electric" system of batteries, motors, and electronic controls and lightweight materials (such as aluminum alloy components) have become new growth points. The export share of new energy vehicle parts will increase significantly in 2024, especially the demand for battery modules and smart driving sensors for the European market will surge.
2. Global procurement trends
Chinese auto parts companies have deeply integrated into the supply chain of international auto companies by virtue of their cost advantages and technological iteration capabilities. For example, BYD's blade batteries and CATL's power batteries have entered the procurement systems of leading auto companies such as Tesla and BMW, driving an increase in the proportion of high-end parts exports.
III. Challenge Analysis: Difficulties in Breaking Through Under Internal and External Troubles
1. International trade barriers are rising
The EU's anti-subsidy investigation on Chinese electric vehicles and the US tariff policy have indirectly affected the export of upstream parts. For example, the obstruction of electric vehicle exports may lead to a decline in orders for supporting parts.
2. Dual pressures of cost and quality
Fluctuations in raw material prices (such as lithium and copper) have squeezed corporate profit margins, while international customers are becoming more stringent in their requirements for component quality certification (such as ISO/TS 16949). Small and medium-sized enterprises are facing pressure to upgrade their technology and meet compliance costs.
3. Risk of industrial chain relocation
The rise of emerging manufacturing bases in Mexico and Eastern Europe has diverted orders for traditional fuel vehicle parts. For example, international suppliers such as Bosch and Continental have expanded their factories in these regions, weakening China's share in the mid- and low-end markets.
IV. Future trends and suggestions: technology upgrade and market diversification
1. Technical path: intelligence and lightweight
- Intelligence: With the growing demand for high value-added products such as LiDAR and automotive chips, it is necessary to increase R&D investment to break the overseas technology monopoly.
- Lightweighting: The application of materials such as carbon fiber and magnesium alloy will be key, targeting the emission reduction needs of European automakers.
2. Market strategy: emerging markets and localized production
- Expand into emerging markets such as the Middle East and Latin America to avoid trade barriers between Europe and the United States. For example, the UAE's automobile imports in 2024 will increase by three digits year-on-year, which has great potential.
- Localize the supply chain by building factories overseas (such as Chery’s joint venture in Spain) to reduce tariff and policy risks.
3. Policy coordination: strengthening the industry support system
It is recommended that the government increase export tax rebates, set up special funds to support companies in obtaining international certification, and build a cross-border supply chain service platform to help small and medium-sized enterprises "go overseas in groups."
In 2025, China's auto parts exports need to cope with the "headwinds" of trade frictions and industrial chain reconstruction, and also seize the "tailwinds" of new energy and intelligence. Only through technological upgrading, market diversification and global layout can the core position of "Made in China" in the global automotive industry chain be consolidated.
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