China's auto parts exports a record high
The value of auto parts exports has been at a record high for three months since September, according to data from the China Association of Automobile Manufacturers.
November’s total was US$5.96 billion, an increase of 41.9 percent compared with the same period last year and a month-on-month increase of 7.8 percent compared with October.
Yang Fudong, assistant to the secretary general of the China Automobile Dealers Association, said more than 70 percent of China's auto parts exports are used in the independent after-sales market.
Yang said the after-sales market had grown very fast in recent years with the longer service life of a car leading to greater demand for replacement parts.
Huachuang Securities noted that auto parts companies mainly rely on downstream recovery, increased global share and new orders, as well as lower fixed costs boosting profit margins.
The firm said in a report that global share can increase because Chinese auto parts companies have more cost-effective products, better services and stronger capital expenditure capabilities.
After the COVID-19 pandemic, China’s auto industry is expected to grow next year. Its total vehicle sales are expected to rise 4 percent to reach 26.3 million units in 2021 amid a stable macro-economic environment and a return of consumer confidence.
The opportunities ahead are attributed to a number of factors, including sustained and stable economic recovery, continued implementation of government policies to stimulate consumption, good pandemic prevention and control as well as vehicle promotions.
Next year will usher in development opportunities and challenges, the auto manufacturers association said, and market players needed to be aware of the complex overseas market situation and how the pandemic will affect the auto markets there.