During the "10th Five-Year Plan" period, China's automotive parts industry experienced significant growth. The industry was able to meet the demands of high-speed vehicle production and social maintenance services, with a strong capability in developing and supporting spare parts for commercial vehicles and low-end passenger cars. Additionally, it had the ability to introduce and adapt mid-to-high-end passenger car components.
The automotive parts sector saw rapid development, with a sharp increase in the number of companies and overall performance metrics. According to the "Automotive Yearbook" from 2000, there were 1,500 parts companies generating a current value of 59.7 billion yuan. By 2004, this figure had risen to 197.2 billion yuan, reflecting an average annual growth rate of 34.8%. During the same period, the number of auto companies increased by about 500 annually, mainly concentrated in the Pearl River Delta, Yangtze River Delta, and Bohai Rim regions. From 2000 to 2005, the industry’s sales revenue grew at an average of 26.05% per year, with parts companies seeing a faster rise of 36.82% annually.
Profits and taxes in the automotive sector also showed steady growth, rising at an average of 26.25% annually between 2000 and 2005. However, after reaching a high growth rate before 2003, the industry faced two years of negative growth (2004–2005), with total profits and taxes declining by 5.7% annually on average. While original equipment manufacturers (OEMs) suffered a steep drop of 41.45%, auto parts companies only declined by 6.45%.
Technological advancements and foreign collaborations led to the introduction of high-tech products. Companies like Shanghai United Electronics and Beijing Delphi Wanyuan integrated advanced technologies from Bosch and Delphi, producing high-quality systems such as engine management and ABS. Many foreign firms, including Bosch, ZF, and Denso, established joint ventures in China, significantly boosting domestic production capabilities and technical standards.
Export volumes surged, surpassing imports for the first time in 2005. This marked a turning point, shifting from net import to net export. Products evolved from low-value Accessories to high-tech components, entering OEM markets and international procurement systems. This trend reflected growing international competitiveness of Chinese auto parts.
Domestic companies also made progress in self-developed products. Firms like Geely, Chery, and Weichai introduced advanced engines and electronic systems, enhancing their brand reputation. Meanwhile, private enterprises played a key role, with companies like Wanxiang and Zhejiang Sanhua emerging as global players.
By 2005, the auto parts market reached approximately 580 billion yuan, with exports reaching 120 billion yuan. Over 10,000 companies operated nationwide, with state-owned and large-scale enterprises accounting for 71.3% of the total. Private firms accounted for 42%, while foreign and joint ventures held 10.5% each. Foreign and joint ventures generally had higher profitability and efficiency compared to domestic counterparts.
The industry was concentrated in regions like Zhejiang, Jiangsu, and Guangdong, with many companies achieving high output efficiency. Despite the growth, most firms remained small, with only a few reaching the scale of global giants. Overall, the auto parts industry demonstrated strong potential and a clear path toward greater innovation and global integration.
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