The trend of lightweight vehicles and domestic substitution of auto parts is obvious, promoting the development of domestic enterprises.

1. Overview of China's automotive parts industry market

The upstream of the automotive parts manufacturing industry mainly includes the raw material market, which consists of metals, electronic materials, plastics, rubber, wood, glass, ceramics, leather, etc. The midstream has a rich variety of automotive parts, which includes four parts: components, assemblies, parts, and systems. The downstream includes automobile manufacturers, 4S shops, auto repair shops, auto parts suppliers, and car modification factories.

In a mature automotive industry chain system, vehicle manufacturers focus on model development and design, vehicle assembly, and brand management, while parts manufacturers are responsible for the modular and systematic development, design, and manufacturing of parts. Automotive parts suppliers are usually classified into first-tier, second-tier, and third-tier suppliers.

In 2023, China's total automobile production and sales reached 30.161 million and 30.094 million units, respectively. This indicates that China's automotive market has huge potential, and it also shows that people's quality of life is improving, leading to a continuous increase in demand for automobiles. The China Association of Automobile Manufacturers stated that in 2024, China will continue to adhere to the general tone of seeking progress while maintaining stability, vigorously boost market confidence, implement strategies to expand domestic demand, and actively promote the overall improvement of economic operations, achieving effective qualitative enhancement and reasonable quantitative growth. With the implementation of relevant supporting policies in the automotive industry, it will further stimulate market entities and consumer vitality, and there is full confidence in the overall economic improvement for the year.