Acquisition and M&A Plan Can Save China's Auto Parts Market

In 2011-2012, there will be limited acquisitions and mergers, or 50% of companies will have no acquisitions and mergers at the moment, so managing and integrating foreign companies’ imports and exports and international acquisitions remains a challenge. China's auto parts sales growth has been destabilizing since its decline in 2009. China’s auto parts exports have grown by 50% in 2010, and its export growth to the United States and Japan has been 55%. The market share of the parts and components in these European and American countries has been drastically intensified, and the United States still remains the major source of Chinese auto parts exports.

Demand in the domestic aftermarket will also become the main growth driver for China's auto parts market in the future. In terms of interest rates, the interest rate gap between auto parts suppliers and OEMs was slightly reduced last year, but the former is still higher than the latter. China The profit rate of auto parts is about 20% higher than that of automakers, but it is more than double the profit of the auto parts market in 2008. The high growth rate of sales of auto parts in China continues to maintain the highest level of profitability in the world, and due to the increase in the number of cars in China and the aging of auto ownership structure, the post-sale market has unlimited potential, China auto parts industry In the future, we will continue to maintain high profits and high production and utilization rates. Although the working capital demand of China's auto parts suppliers has been significantly improved in 2010, the demand is still higher than that of its global counterparts. In the next three years, Chinese auto parts and components still need to face the corporate and acquisition aspects.