News and Information

24

2018

-

10

Chinese component manufacturers must overcome five major hurdles.

Source:

Slower growth in the new‑car market is set to become the new norm. From a macroeconomic perspective, uncertainty in China’s automotive sector has been mounting in the first half of this year, driven by factors such as escalating U.S.–China trade tensions and the accelerated deleveraging of major global economies—both of which have already exerted significant pressure. In the first half of 2023, global auto sales growth decelerated to 2.2% year over year, while China’s vehicle production and sales expanded by 4.2% and 5.6%, respectively, compared with the same period last year. Looking ahead, domestic auto production and sales growth may continue to moderate and eventually settle into a slower, more stable trend. Consequently, the volume of component supply to automakers will also fluctuate, making it increasingly difficult for companies to boost profits solely through market‑size expansion; cost reduction and efficiency gains will become essential.
　　 A slowdown in the growth of the new-car market will become the new normal.
 
　　 From a macroeconomic perspective, uncertainty in China’s automotive market has been mounting in the first half of this year, driven by factors such as escalating U.S.–China trade tensions and the accelerated deleveraging efforts of major global economies, all of which have already exerted significant pressure. In the first half of 2023, global vehicle sales growth slowed to 2.2% year over year, while China’s auto production and sales expanded by 4.2% and 5.6%, respectively, compared with the same period last year. Looking ahead, the pace of growth in domestic auto production and sales is likely to decelerate further and become the new norm, leading to corresponding fluctuations in the volume of component supply for automakers. Consequently, boosting corporate profits will no longer rely solely on expanding market scale; cost reduction and efficiency gains will become the dominant theme. Companies that fail to adapt promptly risk being marginalized or even phased out.
 
　　 The impact of raw material price volatility has increased.
 
　　 Last year, rising prices for rubber and steel dealt a blow to automotive parts suppliers, pushing some companies into a period of operational downturn. Today, as an upstream sector of the automotive industry, the parts industry must not only meet downstream vehicle manufacturers’ growing demands for higher product system integration and cost reduction, but also contend with mounting raw-material price pressures from upstream suppliers. Competition in certain niche segments has already become extremely fierce. In the first half of this year, component prices—covering chips, PCBs, plastics, and other upstream inputs—continued to climb, leading to a steady decline in the gross margins of automotive electronics firms. Consequently, mitigating the impact of volatile raw-material costs has become a central focus of research for parts manufacturers.
 
　　 Policies for new-energy vehicles and vehicle-to-everything (V2X) connectivity are being upgraded rapidly.
 
　　 In recent years, guided by policy signals and major industry trends, many component manufacturers have focused their efforts on entering the new‑energy vehicle and intelligent connected‑vehicle sectors. At present, new‑energy vehicles remain a key investment hotspot in China, but market development will be subject to stringent regulation, and the level of policy support will evolve in tandem with technological advancements. Internationally, policies governing new‑energy vehicles and vehicle‑to‑everything (V2X) systems vary across countries and regions. To mitigate earnings volatility stemming from policy shifts, automotive component firms should intensify their research into global regulatory frameworks and strengthen their ability to anticipate future developments.
 
　　 International procurement and global supply-chain requirements are increasing.
 
　　 The development of global platforms and the implementation of global procurement by vehicle manufacturers are placing new demands on domestic component suppliers, requiring them to enhance their capabilities in providing worldwide supply chains and operating internationally. Coupled with growing global economic uncertainty and the potential for a continued deterioration in the international trade environment, component firms must accelerate the expansion of their overseas operations and assume responsibility for the risks associated with international investment—such as cross‑border operational challenges, exchange‑rate fluctuations, trade protectionism, technical barriers, and cultural conflicts. For China’s automotive component industry to grow and strengthen, it must engage in simultaneous global product development with vehicle manufacturers, secure global project awards, and establish a globally integrated supply‑chain network.
 
　　 Intensified talent mobility is highlighting the challenge of retaining top talent.
 
　　 For the components industry, both managerial and R&D talent—and even the high‑end, multidisciplinary professionals cultivated over years by companies—are increasingly mobile. While this trend helps raise the overall level of R&D and manufacturing across the sector, it undermines firms’ long-term capability building. Take the automotive electronics industry as an example: companies in this field require a substantial pool of senior talent who understand automobiles, management, and electronics. Developing such core personnel internally typically takes three to five years, yet once they reach maturity, they are constantly poached by headhunters. Consequently, retaining top talent has become an urgent issue that demands immediate attention.

Enterprise, automotive, components, global, policy, talent, electronics, supporting industries, new energy

Previous:

Analysis of Industry Concentration in China’s Automotive Rubber Components Sector, 2018

Next:

How many types of automotive shock absorbers are there?

Latest Updates

2025-03-15

Chongqing Jialong Sealing Components Co., Ltd. has obtained a patent for the structural design of a waterproof protective cover assembly, which can be quickly installed on the tailgate support rod of a vehicle.

On February 24, 2025, according to information from the National Intellectual Property Administration, Chongqing Jialong Sealing Components Co., Ltd. has been granted a patent titled “Combined Structure of Waterproof Protective Sleeve,” with authorization announcement number CN 222512130 U and an application date of December 2024. The patent abstract indicates that this utility model pertains to a combined structure for a waterproof protective sleeve, comprising a detachable corrugated hose and a connecting end piece. One end of the corrugated hose is fitted with the connecting end piece, which features an open chamber that communicates directly with the corrugated hose. This design is both simple and ingenious, employing a corrugated tube and a connecting end piece in a separable configuration, enabling quick installation onto automotive tailgate support rods. According to data from Tianyancha, Chongqing Jialong Sealing Components Co., Ltd. was established in 2001 and is headquartered in Chongqing. The company primarily operates in the rubber and plastic products industry. Its registered capital stands at RMB 8 million, with paid-up capital of RMB 6.88 million. Based on big data analysis by Tianyancha, the company has made external investments in one enterprise, participated in one bidding project, and holds one trademark and 58 patents. Additionally, it possesses ten administrative licenses. Source: Financial World

2020-05-12

5.1 Environmental Impact Assessment Report for the Relocation and Reconstruction Project of the Intelligent Production Line for Automotive Rubber and Plastic Vibration-Damping Components (3)

Raw Material Storage: Solid and liquid reagents, as well as chemical reagents with differing chemical properties or incompatible fire‑extinguishing methods, shall be stored in separate cabinets. Hazardous materials must be segregated by hazard class and stored in designated toxic‑substance cabinets, which shall meet the requirements of being airtight, robust, well‑ventilated, and dry.

2020-05-12

5.1 Environmental Impact Assessment Report for the Relocation and Reconstruction Project of the Intelligent Production Line for Automotive Rubber and Plastic Vibration-Damping Components (2)

In this project, the vulcanization process employs different molds depending on product size and type (with or without a reinforcing skeleton). Since products cured in different molds vary in weight, the enterprise is unable to estimate the vulcanization output per batch. Accordingly, for the purposes of this assessment, the production takt time has been calculated based on the rubber‑mixing capacity of the compounding workshop.

COOKIES

Our website uses cookies and similar technologies to personalize the advertising shown to you and to help you get the best experience on our website. For more information, see our Privacy & Cookie Policy

COOKIES

Our website uses cookies and similar technologies to personalize the advertising shown to you and to help you get the best experience on our website. For more information, see our Privacy & Cookie Policy

These cookies are necessary for basic functions such as payment. Standard cookies cannot be turned off and do not store any of your information.

These cookies collect information, such as how many people are using our site or which pages are popular, to help us improve the customer experience. Turning these cookies off will mean we can't collect information to improve your experience.

These cookies enable the website to provide enhanced functionality and personalization. They may be set by us or by third-party providers whose services we have added to our pages. If you do not allow these cookies, some or all of these services may not function properly.

These cookies help us understand what you are interested in so that we can show you relevant advertising on other websites. Turning these cookies off will mean we are unable to show you any personalized advertising.

Sorry，当前栏目暂无内容!

您可以查看其他栏目或返回 首页

Sorry，The current column has no content!

You can view other columns or return Home

Here, your voice matters most. Whether you have valuable suggestions for our products or services, questions that need answering, or experiences you’d like to share, we’re eager to hear from you.

Submit

* Please fill in the fields above (fields marked with an asterisk are required). We will respond to your feedback as soon as possible.