Analysis and prospect of China's auto parts export trade

Source: Prospective Industry Research Institute 



          China's automobile industry is an important strategic and pillar industry in the national economy, and the output value of the entire industry accounts for 5.3% of the national GDP. In the development and evolution of China's automobile industry for more than 60 years, the auto parts industry has also experienced a tortuous development path. With the continuous improvement of China's auto parts manufacturing technology and development capabilities, with the acceleration of globalization and internationalization, the auto parts industry not only forms a complete industrial chain with domestic vehicle manufacturers, but also continuously exports products to 214 countries and regions in the world every year, playing an increasingly important role in the global automotive OEM supporting market and AM aftermarket, and has become the world's most important auto parts manufacturing and exporter.



First, the main body of China's auto parts export trade


1. The composition of trade entities


     According to the professional statistics of the Auto Branch of the China Machinery and Electronic Commerce Association, by 2014, there were a total of 2 various types of enterprises and companies engaged in auto parts export trade in China. 350,000. These entities constituting export trade can be divided into manufacturing enterprises and trading companies in terms of categories, and state-owned, foreign-funded, joint venture, private and listed companies in terms of property rights structure.


2. The proportion of trade entities


  In 2014, the number of auto parts manufacturing enterprises with foreign capital background in China accounted for 20% of the number of large-scale enterprises, but accounted for 63% of the export share of China's entire auto parts, of which wholly foreign-owned enterprises accounted for 35%. Local state-owned, private and joint-stock enterprises account for 80% of the number of large-scale enterprises and 37% of the export trade share, of which 85% of the products are concentrated in the low-end field.


  According to professional statistics, China's top 10 auto parts exporters are mainly concentrated in foreign-funded enterprises, and the total parts exports of the top ten enterprises account for 10% of the total exports. 36%。 From another perspective, it also shows that China's auto parts export enterprises are relatively scattered, and it is necessary to form a local parts export enterprise group with core competitiveness.


3. Characteristics of trade entities

         Due to their strong advantages in core technology, financial strength, sales channels and intellectual property rights, foreign-funded enterprises, especially multinational parts manufacturing giants, have always occupied a favorable position in the global procurement of high-end parts products and OEMs. In the field of high-tech products such as automotive electronics and core components such as engines and automatic transmissions, the market share controlled by foreign capital is as high as 90%. Nowadays, multinational companies are not only satisfied with calling for wind and rain in the high-end market and dominating the top, but also extending their tentacles to the low-end market, squeezing the traditional export market of local enterprises.

         Private and state-owned enterprises, mainly represented by the Yangtze River Delta and coastal areas, play a resource advantage and regional advantage in the export trade of automobile AM parts, accounting for half of the export trade.

          After the liberalization of China's foreign trade policy and system, professional foreign trade companies have no longer been prosperous, and the proportion has been greatly reduced, but with profound international trade knowledge, world trade rules, mastery of international market information and international business negotiation ability and other advantages, professional foreign trade companies have always played a unique, complementary and active role in the export trade of auto parts.

Second, the scale of China's auto parts export trade


     The real scale effect of China's auto parts exports began in 2002 after joining the WTO, and the total export volume of auto parts increased by leaps and bounds in the following ten years. China's parts enterprises not only meet the OEM supporting needs of domestic automobile OEMs with their own advantages, but also export their products to 220 countries in the world, becoming the world's largest auto parts production and exporter.

Trade data of China's auto parts exports in the past five years:

It can be seen from the above data that the scale of China's auto parts exports has increased significantly every year, accounting for half of the entire auto commodity exports.

          According to the statistics of the China Association of Automobile Manufacturers, China's auto parts share in the global market is increasing, although the global export market has declined, China's auto parts products export growth rate has slowed down, but the global market share has always tended to rise, from 2009 to 5. 23%, 5% in 2010. 74%, up from the current 6% or more.

Third, the market of China's auto parts export trade


  At present, China's auto parts export trade has basically covered all countries and regions in the world. With the continuous improvement of China's auto parts manufacturing level, technical process and development capacity in the past 10 years, China's auto parts export trade has laid the basic pattern of mainly developed countries, supplemented by emerging markets and sub-developed countries.

The following are the top 10 destination countries and related data of China's auto parts export ranking in recent years:

Top 10 countries by export value in 2011:

(1) US 60. $9.4 billion, (2) Japan 20. 0.8 billion US dollars, (3) South Korea 11. $1.5 billion, (4) Germany 9. $2.1 billion, (5) Russia 7. $4.2 billion, (6) Canada5. $9.2 billion, (7) UK5. $3.2 billion, (8) Mexico4. $9.3 billion, (9) Iran 4. $5.5 billion, (10) India4. $3.7 billion.

Top 10 countries by export value in 2012:

(1) U.S. 96. $3.2 billion, (2) Japan 49. $7.2 billion, (3) South Korea 23. $3.3 billion, (4) Germany 11. $7.3 billion, (5) Russia 11. $6.6 billion, (6) Canada8. $7.4 billion, (7) Mexico7. $900 million, (8) Thailand 7. $6.7 billion, (9) UK7. $5.6 billion, (10) Malaysia7. $1.7 billion.

The top 10 countries in terms of export value accounted for 68% of auto parts exports. 88%。

Top 10 countries by export value in 2013:


  (1) United States 161. 0 billion US dollars, (2) Japan 66. $800 million, (3) South Korea 31. $900 million, (4) Russia 25. $500 million, (5) Germany 21. $200 million, (6) UK 21. $70, (8) Mexico 15. $200 million, (9) Brazil 14. $500 million, (10) Canada 13. $500 million.

The total of the top 10 exporters accounted for 57% of the total parts exports. 98%, the United States, Japan, South Korea, the top three export accounted for 40% of the share. 88%。

Top 10 countries by data export value in 2014:

(1) United States, (2) Japan, (3) South Korea, (4) Germany, (5) Mexico, (6) Russian Federation, (7) United Kingdom, (8) Canada, (9) Malaysia, (10) India.

Among them, Mexico increased by 33% year-on-year; U.S. up 15% year-over-year; UK up 13% year-on-year; India grew 12% year-on-year.

Released from January to July 2015

Top 10 countries by export value:

(1) United States, (2) Japan, (3) South Korea, (4) Mexico, (5) Germany, (6) Canada, (7) United Kingdom, (8) Thailand, (9) Malaysia, (10) India.

Among them, Mexico increased by 33% year-on-year; U.S. up 15% year-over-year; UK up 13% year-on-year; India grew 12% year-on-year.

From the above data, it can be seen that the world's major developed countries, especially the automobile industry powers, are China's top 10 parts export market. The United States, Japan, and South Korea have always ranked in the top three, and the United States has always been China's largest auto parts export market. Over the past 10 years, Chinese auto parts exports to the United States have increased by 700%, and its share of total U.S. parts imports has increased from 2% to more than 10%. In 2014, China's exports of auto parts to the United States reached $11.5 billion, up from 53% in 2010. $700 million, an increase2. 14 times.

Fourth, the varieties of auto parts export trade


  With the introduction and innovation of technology and the continuous improvement of technical content, the product categories of China's auto parts export have gradually shifted from labor-intensive and material-intensive low-end products to high value-added and high-tech products, and are forming an export product system with parts and functional parts as the main body.


 1. Classification of export products


  China's auto parts export trade can be divided into three categories of products according to the international competitiveness of products:

The first category is highly competitive and high-price products: material-intensive, labor-intensive, low value-added products, mainly including: starting motor, alternator, universal joint, ball cage, brake pad, brake disc, three filters (air filter oil filter filter), water pump, clutch, radiator, support, control arm, etc.

The second category is parts whose competitiveness is close to that of foreign countries/: Please remember our domain name/products: key assembly and system parts products with relatively mature technology and relatively advanced manufacturing technology. The main representative products are: automotive electronic and electrical devices, electronically controlled fuel injection devices, chassis parts (shock absorbers, steering parts), air conditioning compressors, engine parts, etc.

The third category is the parts and components products that are currently weakly competitive: high-tech products that are monopolized by foreign technology and cannot break through intellectual property rights, or are just starting out, and these products still need to introduce technology, digest and absorb, innovate continuously, and gradually develop and then enter the international market after joint ventures and cooperation. The main representative products are: mechatronics products, automatic transmissions, intelligent products and other parts that represent the current development direction of automotive technology.


2. Relevant data of parts and components export products


  According to the latest statistics of customs in 2015, among the classified products of auto parts, the export of automobile transaxles 3. $9.7 billion, the highest growth rate of 14. 70%, the export amount of the body is 0. $8.3 billion, up 3 year-over-year. 94%; The export amount of airbag devices is 3. $0.9 billion, up 5 year-on-year. 67%; Shock absorbers increased by 9% in the first half of the year. 67%, the export amount ranked first in the subdivision category, a total of 11. $400 million.