There is a severe gap in the domestic market for high-end automotive components, and companies urgently need to enhance their overall strength.
Release time:
2025-11-10
Although China’s automotive parts enterprises have a relatively large base, key core components with high profit margins are largely monopolized by foreign-funded companies. Some high-precision and cutting-edge automotive components still rely on imports. In recent years, as China has increasingly tightened its vehicle emission requirements and continuously upgraded emission standards, the country’s dependence on foreign suppliers in the area of aftertreatment electronic control systems has nearly reached 100 percent.
Although China’s automotive parts enterprises have a relatively large base, key core components with high profit margins are largely monopolized by foreign-funded companies. Some high-precision and advanced automotive components still rely on imports. In recent years, as China has increasingly tightened its vehicle emission requirements and continuously upgraded emission standards, the country’s reliance on foreign suppliers for post-treatment electronic control systems has nearly reached 100%.
According to data from the Qianzhan Database, in December 2016, China's imports of auto parts totaled US$3.167 billion, representing a year-on-year increase of 14.75%. For the full year 2016, cumulative imports reached US$29.942 billion, with a cumulative year-on-year growth rate of 8.96%.
The following is a statistical breakdown of China's automobile parts import value from January to December 2016:
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Import Amount: Automotive Parts (in 100 million U.S. dollars)
Date Monthly Value Monthly YoY (%) Cumulative Value Cumulative YoY (%)
December 2016 31.67 14.75 299.42 8.96
November 2016 28.77 20.61 267.69 8.29
October 2016 25.24 17.23 238.94 6.98
September 2016 26.19 26.59 213.60 5.84
August 2016 26.95 27.55 187.41 3.47
July 2016 24.12 0.48 160.47 0.30
June 2016 24.61 1.87 136.34 0.26
May 2016 25.20 9.51 111.74 -0.38
April 2016 24.30 0.58 86.55 -2.92
March 2016 24.85 2.27 62.24 -4.26
February 2016 18.71 14.96 37.39 -8.16
January 2016 18.68 -23.55 18.68 -23.55
Although China’s automotive parts industry has continued to expand in size and scale since the reform and opening-up policy was introduced, domestic independent parts manufacturers remain significantly behind their foreign-invested counterparts. Moreover, most domestic enterprises engage in vicious, homogeneous competition, price wars, and insufficient investment in innovation, resulting in weak core competitiveness of their products. In addition to the relatively low level of R&D investment, due to technological barriers imposed by foreign companies, certain critical components are still predominantly supplied by foreign firms. In areas such as engine powertrains, automatic transmissions, electronic and electrical systems, and general-purpose electrical systems—as well as in specialized, high-precision, high-value-added, and high-profit component segments like fuel supply systems, ignition systems, and energy-specific parts—China largely remains a blank slate, with foreign companies dominating the supply and virtually all these components being reliant on imports. This reality of heavy reliance on imported core components has severely squeezed the profit margins of both the broader automotive industry and individual parts manufacturers, leaving them in an extremely challenging position.
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