China's automobile industry has experienced phenomenal growth over the past two decades, with annual vehicle sales increasing from around 2 million units in 2000 to more than 25 million in 2021. This rapid expansion has enabled China to become the world's largest automotive market, accounting for nearly a third of global car sales. The rise of automobile manufacturing in China has also enabled the parallel growth of the country's auto parts industry.
The Chinese government has made the automotive industry one of the priority sectors under its Made in China 2025 plan. This policy support, along with the vast size of China's domestic market, has made it easier for Chinese auto parts companies to expand. .
According to data from the China Association of Automobile Manufacturers, automobile production in China increased 4.4% year-on-year to 26.08 million units in 2021. This production of Chinese automakers is far ahead of that of the second producer, the United States, which manufactured around 9.7 million light vehicles in 2021. Chinese auto parts suppliers have played a huge role in this rapidly growing local production. The scale of Chinese automobile production has allowed parts manufacturers to achieve economies of scale and reduce costs. This competitive force of immense domestic volume has formed the basis for Chinese auto parts companies to go global.
According to Chinese customs data, in 2021, China's exports of auto parts to the world will reach $75.577 billion, a year-on-year increase of 33.76%. Moreover, Chinese auto parts suppliers are not only large in size, but also have a complete industrial chain. They are described by the industry as “international models”. Almost all types of auto parts can be found in China.
The automotive aftermarket, especially the maintenance market, grows year by year with the age of the automobile, because the older the automobile, the more accessories are used, the more there are of repairs per year and the higher the repair cost. At present, the average age of automobiles in China has reached 6 years. The growth of the automobile era and automobile ownership has led to the meteoric development of the automobile aftermarket, which has gradually become a new industrial center, which means that the industry has seen lucrative opportunities, which can also benefit Western companies.
Against the background of high automobile ownership, high automobile age and changing maintenance concepts, the size of the automobile repair and maintenance market continues to swell. Based on the experience of developed countries, China is about to see maintenance demand reach its peak. Over the past ten years, the sales volume of automobiles has been considerable, but the growth rate of new car sales volume has slowed down. In the future, the average age of automobiles continues to increase, which will propel the automotive maintenance industry into a golden age. The size of China's automobile maintenance market had reached approximately RMB 1.533 billion in 2021, and it is expected to exceed RMB 2 trillion by 2027.
This aging trend in the Chinese automobile fleet, even if it remains lower than in most European countries (11 years in France), has stimulated demand for spare parts intended for the aftermarket. As a result, overseas automotive parts and accessories are booming and the cross-border market welcomes potential opportunities.
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