The Breakthrough Path of Chinese Auto Parts from the Perspective of Global Industrial Chain Reconfig
1. Market Status: Growth Slows, But Resilience Emphasizes
1. Export scale and growth rate
In January and February 2025, China's auto parts exports reached US$14.78 billion, a slight year-on-year increase, continuing the recent trend of slow, single-digit growth. This growth rate slowed significantly compared to the 9.1% export growth (US$88.4 billion) in 2023, but remained stable overall.
Structural characteristics: Component exports are mainly to developed countries (such as the United States), while complete vehicle exports are concentrated in developing countries, reflecting China's dual role in the global automotive industry chain - providing high-value-added components to mature markets and exporting complete vehicle products to emerging markets.
2. Pressure from industrial chain transfer
In recent years, international automakers have been rapidly shifting their parts production bases to low-cost regions like Mexico and Southeast Asia, leading to pressure on Chinese parts exports to divert orders. For example, the North American market has adopted a "nearshoring" strategy to reduce its reliance on the Chinese supply chain, further intensifying competition.
II. Growth Drivers: New Energy and Globalization
1. Explosive demand for new energy vehicles
Driven by the surge in electrification, the "three-electric" systems of batteries, motors, and electronic controls, as well as lightweight materials (such as aluminum alloy components), have become new growth drivers. By 2024, the export share of new energy vehicle parts will increase significantly, with a particular surge in demand for battery modules and smart driving sensors destined for the European market.
2. Global procurement trends
Leveraging cost advantages and technological advancements, Chinese auto parts companies are deeply integrated into the supply chains of international automakers. For example, BYD's blade batteries and CATL's power batteries have entered the procurement systems of leading automakers like Tesla and BMW, driving a rise in the proportion of high-end parts exports.
III. Challenge Analysis: Difficulties in Breaking Through Under Internal and External Troubles
1. Escalation of international trade barriers
The EU's anti-subsidy investigation into Chinese electric vehicles and the US tariff policy have indirectly affected the export of upstream components. For example, the export bottleneck of electric vehicles may lead to a decline in orders for supporting components.
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 tightening their requirements for component quality certification (such as ISO/TS 16949). Small and medium-sized enterprises are facing pressure from technology upgrades and 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 of the mid- and low-end markets.
IV. Future Trends and Recommendations: Technology Upgrading and Market Diversification
1. Technology Path: Intelligence and Lightweighting
- Intelligence: With growing demand for high-value-added products such as LiDAR and automotive chips, increased R&D investment is needed to break the monopoly of overseas technologies.
- Lightweighting: The application of materials such as carbon fiber and magnesium alloy will become 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 circumvent trade barriers between Europe and the United States. For example, the UAE's automobile imports are expected to grow by triple digits year-on-year in 2024, showing huge potential.
- Localizing 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 enterprises in obtaining international certification, and build a cross-border supply chain service platform to help small and medium-sized enterprises "go overseas in groups."
By 2025, China's auto parts exports will need to navigate the headwinds of trade friction and industrial chain restructuring while also capitalizing on the tailwinds of new energy and intelligent technologies. Only through technological upgrades, market diversification, and a global presence can China consolidate its core position in the global automotive industry chain.
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