Analysis of the Growth of Parts and Accessories Market in 2011

In the context of the continuous growth of the domestic auto industry, the demand scale of the auto parts industry has also expanded year by year. From 2002 to 2009, the sales revenue of the domestic auto parts industry continued to increase, with an average growth rate of 25.4%, faster than the average growth rate of 22.7% in the sales of automobiles during the same period.

In 2009, China produced 13.155 million sets of automotive engines, an increase of 47.08% year-on-year, including 3.136 million sets of diesel engines, an increase of 37.36% year-on-year, and 11.212 million sets of gasoline engines, an increase of 50.43% over the same period last year. Due to the large increase in passenger vehicles and the main use of gasoline as the driving force, the increase in the output of gasoline engines was 13.07 percentage points higher than that of diesel engines. From January to June 2010, 55 domestic automobile engine companies that were included in the statistics range produced a total of 8.3746 million engines, an increase of 49.20% compared with the same period in 2009. In terms of vehicle diesel engines, in the first six months of 2010, 24 diesel engine companies included in the statistics completed 2,015,100 units of production, an increase of 35.21% over the same period of the previous year. For the gasoline engine used in gasoline engines, 41 gasoline engine makers included in the statistics completed 6,355,600 units of production, an increase of 54.28% compared with the same period of the previous year.

In China, due to the high market demand in 2009, OEMs are also willing to accept unacceptable prices. The relationship between supply and demand leads to high profitability of auto parts. In this context, several of China's heavyweight local auto parts companies have also entered the field of vision. Sales of Weichai Power, Wanxiang Group, etc. have entered the top 100 globally. Weichai Power expects the company's net profit for 2009 will be approximately RMB 3.1 billion to RMB 3.7 billion, a year-on-year increase of 50% to 100%. Wanxiang Group completed its tasks in 2009 with an annual operating income of 51.48 billion yuan and a profit tax of 6.231 billion yuan, an increase of 13% and 61% year-on-year respectively. In spite of this, the domestic spare parts industry still lacks enterprises with international competitiveness, and domestic spare parts enterprises need to be further improved in terms of profitability, supporting capabilities, and technical level.