In recent years, the trend of localization of auto parts in China's automotive industry has been continuously strengthened. This trend is mainly influenced by national policy support, cost advantages, and improvements in technological capabilities.

First, domestic auto parts companies are continuously improving their technological capabilities and production capacity to meet market demand. Compared to traditional automotive powerhouses, there is still a significant gap in design, research and development, and production capabilities in China's auto parts industry. However, with the rapid development of the Chinese automotive market in recent years, domestic parts companies have increased their investment in technological research and innovation, continuously improving product quality and performance. At the same time, many domestic parts companies have enhanced their production capacity and manufacturing level through cooperation with internationally renowned companies and the introduction of high-end equipment, gradually gaining recognition from numerous vehicle manufacturers.

Secondly, localization can reduce costs and improve production efficiency. Traditionally, Chinese automotive companies have heavily relied on imported parts, which has led to relatively high production costs. However, by using domestic parts, companies can effectively reduce procurement costs and simultaneously reduce the links in the supply chain, breaking the dependence on imports. More importantly, localization can provide faster response times and flexibility to meet changes in market demand.