Since China's entry into WTO, along with the boom of China's automobile industry, the auto parts industry has maintained a continuous and fast increase, higher than that of cars, passenger cars and trucks, and ranks the first among the 12 sub-industries of auto industry. This shows the tremendous value of investments in the auto parts industry.
In 2005, the output and sales of auto vehicles in China exceed 5.7 million sets. Inventory of auto vehicles has been increasing every year and exceeds 25 million sets. China has become the second largest auto consumption country and tries to become the third largest auto manufacturing country. Being the basis of auto industry, the auto parts industry is exposed to such a huge market of accessories and after-sale and getting more and more attention from investors both abroad and at home. This has resulted in a fast growth of auto parts industry.
In 2005, China's auto parts industry has developed rapidly and has reached an output of more than 400 billion RMB. Meanwhile, China's auto export has experienced a turning point in history. Along with the rapid increase of whole-vehicle export, auto parts export increases fast, with an export volume as high as 15.235 billion US dollars, up by 75.11% as compared with the same period of last year. It is known that China will try to maintain an annual increase of over 40% for automobiles and parts exports during the “Eleventh Five-year Plan”, and reach 70 billion US dollars in 2010.
According to the latest information of the total demand in China's market, conducted by the Industry Economy Research Department of State Council Development Research Centre, inventory of domestic automobile will reach 56.69 million sets in 2010 and 131.03 million sets in 2020. The figure indicates the promising prospects of the domestic auto market in the long run and lays a foundation for development of auto parts industry.
