Can the auto parts under the "four modernizations" still maintain the "trend" of reverse growth?

At present, China domestic epidemic has basically ended, and automobile production and consumption are accelerating the recovery. According to data from the China Federation of Trade Unions, the cumulative domestic car sales were 884,500 units, -1.6% year-on-year. Among them, the fourth week of April has achieved a year-on-year increase of 12.3%, and car sales have basically recovered to the same level last year, which will directly drive auto parts Business operations.

According to reports, auto parts made nearly 7 billion less in the first quarter, and 26% of companies still bucked the trend. At present, the domestic epidemic situation has tended to calm down, and automobile production and consumption are accelerating the recovery. According to data from the China Federation of Trade Unions, the cumulative domestic car sales were 884,500 units, -1.6% year-on-year. Among them, the fourth week of April has achieved a year-on-year increase of 12.3%, and car sales have basically recovered to the same level last year, which will directly drive auto parts Business operations.

Affected by the epidemic, sales in overseas markets are still sluggish. Under this circumstance, some domestic auto parts companies are also seeking new opportunities, or will accelerate the process of import substitution in China's auto parts industry. In the past few years, the rise of smart cars is triggering the competition of various manufacturers in the industry chain. The current global automotive industry is ushering in a key opportunity for the transformation and upgrading of "electrification, intelligence, networking, and sharing". Industry is an important foundation to support the healthy and sustainable development of the automotive industry. Innovation and scale are the basis of survival. Domestic auto parts opportunities and challenges coexist.

At present, the automation level of most foreign auto parts manufacturers is already at a high level, and the basic information system has been maturely applied. At present, they are looking for lean improvement; the automation level of domestic manufacturers is slightly lower, subject to cost pressures, and needs to be further Import.

This epidemic has prompted many car companies to experience extreme situations. The interruption of supply and suspension of production indicate that many domestic and foreign car companies have a lot of room for improvement in supply chain optimization. The automotive industry is one of the industries with a relatively high degree of globalization. The supply chain is lengthy and complicated. The occurrence of the epidemic has also promoted customers' consideration of their own safety. In the future, smart and environmentally friendly vehicles will be more favored by everyone, and investment in component technologies based on this may become the next outlet.

At present, the global automobile industry is ushering in the era of "electrification, intelligence, network connection and sharing". Even as the global auto market continues to decline, the wave of "new four modernizations" of automobiles is still surging. In the future, autonomous driving, intelligent network connection, and new energy vehicles will be the focus of auto parts and automotive transmission systems, and will also strengthen their core competitiveness in the "sensors, software, and services" three sectors. The transformation and upgrading of traditional auto companies is actually the intelligent upgrade of the whole vehicle drive under auto parts. The intelligentization of auto parts and auto transmission can lead the development direction of the auto industry. Parts companies should achieve advance layout and advance research and development, so as to occupy favorable conditions in future competition.

At present, there are more than 100,000 local auto parts companies in China, and these companies have created more than 80% of auto parts in the world. According to data from the General Administration of Customs in 2019, the export volume of Chinese auto parts companies exceeded 60 billion U.S. dollars last year, of which 40% were exported by foreign subsidiaries of Chinese companies. The Chinese parts market is also an important part of global production capacity allocation.

The cooling of the automobile market has made it difficult for everyone to live, and it is necessary to strengthen the cultivation of ‘inner strength’. In the future, major multinational auto companies will transfer and deploy more global models, more complete and more homogeneous supply chain systems to China, to take root in China and face the world, and use more products or parts produced by Chinese factories to meet the global market. Demand or parts demand from factories in other parts of the world to circumvent and prevent another possible black swan in the future.

With the development of the Internet of Vehicles, future automotive lightweight customers and orders will drive high growth. The long-term outlook for BBW is expected. BB is to replace the traditional mechanical or hydraulic system with an electric system. It is the long-term development trend of automobile braking technology, and it is also an essential core part of automobile automatic driving. Through technological and functional innovation, to upgrade the product structure and seize the international market is becoming the direction of efforts and thinking of the auto parts industry.