Opportunity 1: High growth of the domestic automobile market

"In the next ten years, my country’s demand for automobiles will still maintain an average annual growth rate of 13%-15%. Compared with the world’s automobile powers, my country’s automobile market has a relatively long period of rapid growth. This time is about From 2009 to 2023, the span is about 15 years. This is a good development opportunity for all domestic parts companies."

Our country has its own special national conditions, and our income gap is larger than those of auto power. The size of the income gap will play a vital role in the popularity of consumer durables. The smaller the income gap, the shorter the popularization time of consumer durables, and vice versa

The relatively large income gap determines that the popularity of automobiles in my country is relatively slow. As a result, the automobile market in my country will maintain a longer period of continuous growth. This will also win a market for self-owned brand companies that are still relatively weak in competitiveness during a certain period of time. Relatively long development time.

Opportunity 2: Accelerating the pace of internationalization of the domestic automobile industry

"During the Twelfth Five-Year Plan period, the country will vigorously promote the internationalization of the auto industry and encourage auto companies to go global. With the internationalization of automakers, it will also play a very good role in boosting my country’s independent parts and components companies. "Xu Changming said.

"The selling points of our auto products are highly compatible with the buying points of consumers who have grown rapidly in a certain period of time. In a certain period of time, the sales volume of auto products has grown the fastest in South America, and in Asia outside of Japan and South Korea. , And the African market is also growing rapidly. The people in these countries are more inclined to low-priced auto products. At the same time, as the country actively promotes the internationalization of the auto industry, my country’s becoming a powerful auto country will be just around the corner. Under the general background, parts and components companies will also usher in new development opportunities.

Opportunity 3: The rapid development of independent vehicle companies

"China’s automobile market is undergoing a new change, that is, the second and third-tier markets, especially the third-tier markets, are becoming the main growth point and support point for the development of my country’s auto industry in the future. Consumers in the third-tier markets are not so sensitive to foreign famous cars. On the contrary, they pay more attention to the economic applicability of automobiles. At the same time, they have their own preferences for the appearance of automobiles under the influence of traditional Chinese thinking. In view of these characteristics, independent brand automobiles have more advantages in the development."

With the gradual strength of domestic independent brand enterprises, it will also stimulate the rapid development of domestic parts and components enterprises. While welcoming opportunities, domestic self-owned brand enterprises are also facing challenges. One of the challenges is that the cost advantage of independent parts companies is being weakened. As the prices of production factors continue to rise, the costs of independent parts companies have gradually increased. However, due to the continuous expansion of scale and the continuous advancement of research and development, the costs of wholly foreign-owned and joint venture parts companies have continued to decrease.