Looking at China’s Auto Industry Chain from the Import and Export of Parts and Components

Looking at China's Auto Industry Chain from the Import and Export of Parts and Components

At present, the ratio of income of my country’s automobile and parts industry is about 1:1, which still has a gap with the ratio of 1:1.7 in the auto power industry. The parts industry is large but not strong, and there are many shortcomings and breakpoints in the upstream and downstream of the industrial chain. The essence of global auto industry competition is the competition of supporting systems, that is, the competition of industrial chain and value chain. Therefore, optimizing the upstream and downstream layout of the industry, accelerating the integration and innovation of the supply chain, building an independent, safe and controllable industrial chain, and enhancing my country’s position in the global industrial chain are the endogenous power and realistic requirements for achieving high-quality development of automobile exports.

The export value of parts and components is generally stable

  1. In 2020, my country’s exports of parts and components will fall more than the entire vehicle

Since 2015, the export of my country’s auto parts (including key auto parts, spare parts, glass, and tires, the same below) has not fluctuated much. Except for the export volume exceeding 60 billion U.S. dollars in 2018, all other years fluctuated around 55 billion U.S. dollars, which is similar to the annual export trend of complete vehicles. In 2020, my country’s total export of auto products will exceed US$71 billion, with parts and components accounting for 78.0%. Among them, the export value of complete vehicles was US$15.735 billion, a year-on-year decrease of 3.6%; the export value of parts and components was US$55.397 billion, a year-on-year decrease of 5.9%, which was higher than that of complete vehicles. Compared with 2019, the monthly difference in parts exports in 2020 is obvious. Affected by the epidemic, exports fell to the bottom in February, but returned to the same period last year in March; due to weak demand in overseas markets, they continued to decline for the next four months, and stabilized and recovered in August. Exports continued to run at a high level from September to December. . Compared with the export trend of complete vehicles, parts and components rebounded to the level of the same period of the previous year one month earlier than complete vehicles, which shows that parts and components are more sensitive to the market.

  1. The export of auto parts is dominated by key parts and spare parts

In 2020, my country’s export of key automobile parts was US$23.021 billion, a year-on-year decrease of 4.7%, accounting for 41.6%; the export of parts and accessories was US$19.654 billion, a year-on-year decrease of 3.9%, accounting for 35.5%; and the export of automotive glass was US$1.087 billion, a year-on-year decrease of 5.2%. ; Automobile tire exports were 11.635 billion US dollars, a year-on-year decrease of 11.2%. Automobile glass is mainly exported to traditional automobile manufacturing countries such as the United States, Japan, Germany, and South Korea. The main export markets for automobile tires are the United States, Mexico, Saudi Arabia, and the United Kingdom.

Specifically, the main types of key parts exports are frame and brake systems, with exports of 5.041 billion and 4.943 billion US dollars respectively, mainly exported to the United States, Japan, Mexico, and Germany. In terms of parts and accessories, body panels and wheels will be the main export categories in 2020, with exports of 6.435 billion and 4.865 billion U.S. dollars, of which wheels are mainly exported to the United States, Japan, Mexico, and Thailand.

  1. The export markets are concentrated in Asia, North America and Europe

Asia (this article refers to the rest of Asia without China, the same below), North America and Europe are the main export markets for my country’s parts and components. In 2020, my country’s largest export market for key parts is Asia, with an export value of 7.494 billion U.S. dollars, accounting for 32.6%; followed by North America, with an export value of 6.076 billion U.S. dollars, accounting for 26.4%; and its export to Europe is 5.902 billion U.S. dollars, accounting for 32.6%. 25.6%. In terms of parts and accessories, exports to Asia accounted for 42.9%; exports to North America were US$5.065 billion, accounting for 25.8%; exports to Europe were US$3.371 billion, accounting for 17.2%.

Although there are trade frictions between China and the United States, my country’s exports of parts and components to the United States will decline in 2020, but whether it is key parts or spare parts, the United States is still my country’s largest exporter, and both of these two items account for 24% of exports to the United States. %, the total export value exceeds 10 billion U.S. dollars. Among them, the main export products of key parts are brake systems, suspension systems and steering systems, and the main export products of parts and accessories are aluminum alloy wheels, car bodies and electric lighting devices. Other countries that export more key parts and accessories include Japan, South Korea, and Mexico.

  1. RCEP agreement regional auto industry chain export relevance

In 2020, within the RCEP Agreement (Regional Comprehensive Economic Partnership Agreement) area, Japan, South Korea, and Thailand are the top three countries in my country’s export of key automobile parts and parts. The products exported to Japan are mainly aluminum alloy wheels, bodies, ignition wiring units, brake systems, airbags, etc.; the products exported to Korea are mainly ignition wiring units, bodywork, steering systems, airbags, etc.; the main exports to Thailand are car bodies, aluminum Alloy wheels, steering systems, braking systems, etc.