27
2025
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03
Basic hollowing out and marginalization of domestic automotive parts technology
At present, there are over 100000 automotive parts companies in the north and south of China, including approximately 13000 medium-sized enterprises. Last year, according to statistics, the industrial output value of automobile parts enterprises in China was about 3.8 trillion yuan, with a main business income of 3.5 trillion yuan. The average profit margin of the entire industry was 6% to 8%, which was only about half of that of foreign-funded enterprises. This indicates that under the same cost of equity investment, the net profit obtained by foreign-funded enterprises is more than twice that of domestic enterprises. Although the base of Chinese automotive parts enterprises is relatively large, the key core components with high profits are basically monopolized by foreign-funded enterprises. Some high-precision and cutting-edge automotive parts still rely on imports, especially in recent years, with the increasingly strict requirements for automotive emissions and the continuous upgrading of emission standards in China, the dependence on foreign investment in post-processing electronic control has almost reached 100%.
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