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In recent months, consumer car costs are expected to see a decline, as evidenced by Hainan Mazda's announcement that the prices of over 200 parts and components for models like Premar and Fujimair will be reduced by an average of around 18%, with some parts seeing reductions exceeding 50%. This trend is not isolated—Nanjing Fiat recently announced a comprehensive price cut on its auto parts, while BYD also revealed plans to adjust the retail pricing of all its parts. Following the fierce vehicle price wars, a new battle has now erupted in the auto parts market.
As the automotive industry faces declining sales, the cost of car ownership has become a major concern for consumers. Automakers and dealers have started to realize that lowering accessory prices can be more effective than simply reducing the price of the entire vehicle. Nanjing Fiat, for example, has publicly highlighted its 50 consumables with lower prices, showcasing its competitive edge. Meanwhile, a German automaker has set up a new parts base in Changchun, promising cheaper spare parts in the near future.
These moves have been well-received by dealers. A Nanjing Fiat dealer noted that although after-sales repair profits have slightly decreased, the availability of cheaper parts has led to increased sales. Similarly, Beijing Hyundai dealers mentioned that many customers choose their vehicles due to lower maintenance costs. In response, they plan to adjust part and labor prices according to new manufacturer guidelines to maintain their competitive advantage.
Chen Yusong, manager of the automotive division at Xinhuaxin Market Research & Consulting Co., Ltd., points out that parts typically make up about 70% of a vehicle’s total cost structure. A significant portion of vehicle price reductions comes from lower component costs. Since parts are often sold together, their pricing tends to follow similar trends. Industry analysts suggest that as production scales up and more manufacturers enter the parts market, competition is driving down prices. Currently, both manufacturers and distributors enjoy relatively high profit margins, but there is still room for further price cuts in the parts sector.
With this shift, the auto industry is witnessing a transformation—not just in how cars are priced, but in how maintenance and repair costs are managed. As consumers become more cost-conscious, the pressure on automakers to offer affordable parts is likely to grow.
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October 05, 2025