Automobiles and Parts Exports Are in Trouble in the First Five Stages
Changchun, Xinhuanet – April 9 (Reporter Du Xuejing) – At a recent "Seminar on the Expansion of Automobile and Parts Exports" organized by the Ministry of Commerce and the National Development and Reform Commission in Changchun, it was revealed that China's automobile and auto parts exports are still in their early stages. Despite the growing potential, the sector faces several challenges that hinder its development.
Firstly, China's share in the global automobile and parts market remains relatively small. According to estimates from the World Association of Automobile and Parts Manufacturers, the global auto parts market reached approximately $1.2 trillion in 2003. In comparison, Europe accounted for about 25%, while North America held around 30%. China’s presence in this vast market is minimal, indicating a long way to go before it can compete effectively on the global stage.
Secondly, domestic production enterprises lack outward orientation and exhibit uneven development. While China has made progress in manufacturing vehicles, it still lacks the strength to export them on a large scale. The spare parts industry, although growing, is limited in scale and faces issues such as overcapacity, outdated technology, and inefficient production processes. Additionally, there is a lack of specialization, with many companies producing low-value goods rather than high-tech components.
Thirdly, the structure of exported products is not well balanced. Most of China’s auto and parts exports are labor-intensive, with very few high-tech or high-value-added products being sold internationally. For example, core components like electronically-controlled engine systems (such as EFI engines) are largely manufactured by foreign companies or joint ventures in China, primarily to meet domestic demand rather than for export.
Fourthly, product quality remains a concern. Many Chinese auto parts companies lack the necessary quality control systems, experience in mass production, and the ability to innovate. This results in substandard products that fail to meet international standards. Moreover, the pace of quality certification for Chinese auto companies is slow, further limiting their competitiveness in foreign markets.
Lastly, export services are underdeveloped. Companies often struggle with small order volumes, which lead to high maintenance costs and delayed parts supply. Additionally, pre-sale and after-sales support is lacking compared to local competitors, leading foreign customers to lose confidence in the reliability of Chinese auto and parts products. As a result, some orders have been lost due to poor service and inconsistent performance.
To address these issues, experts at the seminar called for stronger policy support, improved technological capabilities, and better infrastructure to help Chinese auto and parts manufacturers expand their global footprint.
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