At present, the scale of China's spare parts industry ranks in the forefront of the world, forming the scale of more than 20,000 companies. However, due to the lack of funds for independent development, high energy consumption, and low value-added products, its market competitiveness has gradually declined.
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In China's domestic market, almost all major auto parts are monopolized by foreign advanced manufacturers. The relevant information released by the Ministry of Commerce shows that in the production of automotive EFI systems, engine management systems, ABS, micro-motors and airbags, the share of foreign-funded enterprises reached 100%, 100%, 91%, 97% and 69%, respectively.
Foreign-invested parts and components companies’ sales revenue in China last year was about 900 billion yuan, accounting for 54% of the Chinese parts and components market.
After China liberalized the equity ratio of parts and components companies, the establishment of wholly-owned enterprises by Chinese multinational auto parts companies has become a trend. In recent years, multinational giants such as Delphi, Denso, Sumitomo, Dana USA, Valeo of France, and Fujitsu Electronics of Japan competed to expand investment scale in China.
At present, 70% of the world's top 100 auto parts suppliers have come to China for business, and there are more than 1,200 foreign-funded enterprises that manufacture auto parts in China.
"As the domestic and foreign capitals are more optimistic about the development prospects of China's auto parts and components, in the near future, China is expected to become the world's auto parts production and manufacturing center." Dong Yang said.
