Introduction to the current market status and development trends of auto parts

The current state of the automotive parts market is characterized by market growth and strong demand for new energy-related parts. Future development will focus on electrification and intelligence. Details are as follows:
Market Overview
Market size continues to expand: The global automotive parts market is huge and growing. According to Business Research Insights, the global automotive parts market size will reach US\$2.33 trillion in 2023 and US\$2.41 trillion in 2024, representing a year-on-year increase of 3.43%. The Chinese market is also expanding. In 2022, the size of China's automotive parts market reached approximately 4.9 trillion yuan, a year-on-year increase of 6.2%, accounting for 31.4% of the global market share. It is expected that the size of China's automotive parts market will reach approximately 5 trillion yuan in 2025.
Surging demand for new energy vehicle parts: The rapid development of new energy vehicles has created new growth points for the parts market. In 2024, domestic sales of new energy vehicles reached 12.25 million units, with a penetration rate of 45%. This has led to a significant increase in the demand for core components such as batteries, motors, and electronic controls, and has also driven the development of new energy vehicle intelligent components such as wire-controlled chassis.
Intense market competition and low concentration: The global automotive parts industry exhibits a giant effect, with companies such as Bosch, Denso, and Continental controlling a large portion of the trade volume. However, the overall market concentration remains relatively low, with the market share of major companies generally below 3%. The market has numerous companies and diverse business models, resulting in fierce competition.
Domestic market concentration: The domestic automotive parts industry chain is characterized by concentration at the top and regional concentration. With the growth of market share of leading new energy vehicle companies such as BYD and Li Auto, parts suppliers are gathering around them, forming industrial clusters, improving production efficiency, and reducing logistics costs.
Vast overseas market potential: The European and American passenger vehicle markets account for approximately 28% of the global market. Overseas automakers urgently need to reduce costs, while domestic automakers' overseas factory construction creates a need for nearby supporting facilities. Domestic parts companies are expected to gain a higher share in the overseas market due to their efficient management and low costs.