Auto parts as the basis for the automotive industry, is supporting the automotive industry sustained and healthy development of the necessary elements. Particular, the current auto industry is vigorous, full swing to carry out self-development and innovation, but also requires a strong component system for support. Own brand of vehicle spare parts and technical innovation need to be based on, parts of the innovation and the development of vehicle industry, a strong driving force of their mutual influence, interaction, and not the vehicle’s own brand, a strong component system R & D innovation is difficult to burst, without a strong support system spare parts, forcing their own brand do masterpiece unsustainable.

January to December 2005, China’s total auto parts and accessories manufacturers to achieve total industrial output value of 383,800,952 yuan, up 18.67% over the previous year; to achieve total sales revenue 375,265,815 yuan, up 20.21% over the previous year; to achieve total profit amounted to 21,462,002 yuan, 9.09% lower than the same period last year.

2006 January-December, China’s total auto parts and accessories manufacturing enterprises realized total industrial output value of 539,704,996 yuan, up 34.35% over the previous year; to achieve total sales revenue 527,234,933 yuan, up 34.71% over the previous year; to achieve total profit amounted to 32,605,652 yuan, up 46.79% over the previous year; as of end of December 2006, the number of above-scale enterprises industry-wide as 6,142 homes.

From January to November 2007, China’s total auto parts and accessories manufacturers to achieve total industrial output value 683,525,503 yuan, an increase over the previous year 37.34%; to achieve total sales revenue 663,529,269 yuan, an increase of 37.45 over the previous year %; achieve total profit 48,487,363 yuan, an increase over the previous year 68.61%; As of late November 2007, the number of above-scale enterprises industry-wide as 7,171 homes.

 [2] From 2010 1-10 months to see the operation of the industry, gross profit automotive parts industry is still growing, but growth slowed; both import and export volume has increased, but the imported products to high transmission and engine parts margin, high value-added, high-tech products, exports to tire and electronic instrumentation, and other barriers to entry is low, profit margins, mainly labor-intensive and resource consuming. Downstream vehicle industry is currently overcapacity, although the country in 2010 under the stimulus appeared unconventional, high-speed growth, but growth slowed in 2011 sales, excess capacity pressures, affected, components industries under six months may be subject to greater pressure on profits. The main problem facing the industry by squeezing two upstream and downstream, the industry is facing the dual pressures of two parts industry is squeezed by the industry, the lack of bargaining power of upstream and downstream. Upstream raw material is mainly steel, rubber, plastics, fabrics, etc., and ultimately by the price of steel, oil, natural rubber and other commodity prices decided by auto parts companies only to determine the upstream to avoid commodity price risk. Meanwhile, the downstream vehicle manufacturers mostly large enterprises and groups, and parts manufacturers in the interests of the game in a strong position, negotiating skills, able to pass on cost pressures automotive parts industry, therefore, in fact, in two parts by squeezing the "sandwich" sandwich position.

 [2] made parts mainly for own-brand cars, with low market share of Commerce Department data show that foreign control of the vast majority of market share in auto parts, domestic parts industry-wide sales revenue accounted for only 20% -25 %, with a foreign background, auto parts manufacturers, more than 75% of the entire industry, in which foreign suppliers, 55%-owned enterprises, joint ventures accounted for 45% local parts are mainly used in automotive brands, market share rate is low. In the automotive and engine parts and other high-tech fields, up to 90% market share of foreign capital, which, automotive injection systems, engine management systems, ABS and airbags, automatic transmission and other core components of the production in the foreign percentage is 100%, respectively, 100% and 91%, 69%.

Auto parts manufacturers from automobile companies and the formation of specialized parts group, is becoming a global trend. The world’s leading auto and auto parts enterprises, almost all of China established a joint venture or wholly-owned enterprises, and technology joint venture has more than 1000. Number of domestic high-tech, effective, large-scale auto and auto parts enterprises to gradually grow up. With the introduction of the international automotive industry parts, "global sourcing" strategy and the implementation of multinational auto companies localization strategies, the domestic market will be a huge gap in parts accessories. By 2010, China’s domestic auto parts output will reach 70 billion yuan.

At present, although the overall global economic downturn, but nearly four to five years, according to the actual procurement practices, the results of China sourcing is not as large as the company forecast optimism, almost 80% of companies did not meet their purchases and reduce the cost of purchasing the target. With the appreciation of the RMB and the export tax rebate rate of decline, more pressure on China sourcing, international buyers have to look at the same time transferred to Vietnam, India, Thailand, Australia and other countries and regions. From the above it seems that China’s auto parts industry in the current financial crisis will accelerate growth.