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 auto and auto parts exports are still in their early stages, facing several challenges. The seminar highlighted five major issues affecting the sector.
First, China's share in the global automotive and parts market remains very small. According to estimates from the World Association of Automobile and Parts Manufacturers, the global parts market reached approximately $1.2 trillion in 2003. Europe accounted for around 25%, while North America took up about 30%. In contrast, China's contribution was minimal, indicating a significant gap in market presence.
Second, domestic manufacturers lack a strong export orientation and exhibit uneven development. Chinese automakers are not yet capable of large-scale exports, and the scale of spare parts exports is limited. Issues such as overcapacity, small-scale operations, outdated technology, and slow product updates are widespread. Additionally, the industry suffers from low product concentration and an irrational structure among parts and component companies. Many firms produce low-volume, technologically limited products with low specialization and high costs.
Third, the structure of exported products is unbalanced. Most of China’s auto parts exports are labor-intensive goods, with very little high-tech or high-value-added products being exported. For instance, electronically controlled components like EFI engines are still largely produced by foreign companies or joint ventures in China, primarily to meet domestic demand rather than for export.
Fourth, product quality remains a concern. Many Chinese auto parts companies lack the capability to maintain consistent quality, experience in mass production, and the ability to develop new products. This leads to substandard exports. Moreover, the pace of quality certification across the industry is slow, further hindering international competitiveness.
Lastly, export services are weak. Companies often face difficulties due to small order volumes, high maintenance costs, and delayed parts supply. Additionally, pre-sale and after-sales support is lacking compared to local competitors, which has led some foreign customers to lose confidence in the reliability of Chinese auto parts, resulting in lost orders.
These challenges highlight the need for strategic improvements in technology, quality control, and service infrastructure to enhance China’s position in the global automotive market.
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