China’s auto parts exports boosts by 9 times

According to the latest data released by the General Administration of Customs of China, from January to August of 2021, the export value of auto parts products reached 316.58 billion yuan, up 34.6% year by year, and increased by 9 times compared with the 31.22 billion yuan in the same period of 2019.


According to CCTV reporter from Zhaofeng Electromechanical in Hangzhou, Zhejiang, from the second half of last year, a large number of export orders broke out, one is the recovery of previous orders, the second is due to the overall inventory rate of the overseas terminal aftermarket is relatively low, so the order volume of the whole auto parts market has a very obvious increase.  Orders increased by more than 80%, and more than 40% production lines are operating at full capacity, with orders waiting for three months.  

Like Zhaofeng company, the workshop of Huida Machinery, which makes aluminum auto parts such as steering wheels, is busy in Huzhou, Zhejiang province.  Due to the continuous growth of orders, Huida Machinery integrated and expanded its production lines last year, adding three new automatic production lines and increasing production efficiency by 30%.  Han Bin, deputy general manager of the company, said annual production has increased from 5 million kits last year to 7 million kits this year, and sales will maintain a high growth rate of 40-50% in the next year or two.

It is understood that due to the chip shortage, many overseas auto parts factories are facing the situation of the impending suspension of production, global car production is declining.  According to the latest data from AutoForecast Solutions, as of September 5, the cumulative global auto production reduction reached 7.327 million units, an increase of about 440,000 units from the previous week.  Cumulative global auto parts production cuts could climb to 8.547 million units before the chip crisis is over, with the chip shortage showing no signs of abating anytime soon.

auto parts

Although the demand for auto parts and components to provide supporting services for oems has decreased, the demand for new energy vehicles and the after-sales market for maintenance is still strong.

Yang Fudong, assistant secretary general of after-sales parts branch of China Automobile Distribution Association, mentioned that the host supporting OEM is actually less, because car sales are declining, coupled with the conversion of new energy vehicles, a lot of spare parts and auto parts will change.  Oil, engine related, gearbox related, with the development of new energy vehicles will go down, but the chassis, motor, battery, electronic control of these parts may go up.  With the growth of car age and the popularity of the capacity of the car, the after-sales also showed a growing trend, and rose very fast.

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