After more than 10 years of development, China's automobile and parts industry has initially formed a competitive automobile and parts manufacturing system. At the 5th China International Auto Parts and Related Products Exhibition held recently, Yan Jianlai, Director of the Parts and Components Department of the China Association of Automobile Manufacturers, disclosed that at present, the number of auto parts companies that are well documented in the National Bureau of Statistics statistics is approximately. It has more than 4,600 units and annual sales revenue is 267.1 billion yuan. If no statistics are counted, the number of auto parts companies in China will probably be between 30,000 and 40,000. Annual sales income exceeds 300 billion yuan.

According to statistics, among the more than 4,600 auto parts companies, there are more than 1,200 foreign-invested companies. At present, most of the world-famous automotive and parts companies have established joint ventures or wholly-owned enterprises in China. The massive entry of these companies brought advanced technologies and management, which promoted the improvement of the overall level of China's auto parts industry. A number of domestic automobile and parts companies with high technological content, good efficiency, and large scale have gradually grown up. Initially formed a competitive automobile and parts manufacturing system and a relatively complete supporting network system. Not only meet the needs of the domestic market, but also some auto and parts products have entered the international market, in recent years the rapid growth of China's auto and auto parts exports.

Yan Jianlai believes that China's auto parts industry has major problems in its competitive strengths: product structure cannot adapt to changes in market structure, R&D capability is difficult to adapt to technological development, manufacturing capacity is still relatively weak, and technology and business talent are lacking. Yan Jianlai believes that China's spare parts industry is currently relying excessively on and relocating joint venture Chinese and foreign technology and over-reliance on foreign advanced manufacturing and experimental equipment. Except for a few companies that have developed during the expansion of the parts and components market, most parts and components investment has failed to fully realize its effectiveness and even lost the opportunity for technological upgrading.

Yan Jianlai believes that the world’s nine largest automotive multinationals, General Motors, Ford, Daimler-Chrysler, Volkswagen, Toyota, Renault-Nissan, Peugeot-Citroen, Honda, and BMW have all entered China, and world-renowned auto parts manufacturers have come to China. China's investment in plant construction or technical cooperation with domestic parts and components plants, because these companies belong to different systems and standards, Japan, the United States, Europe, China's parts industry system and standards are not uniform, limiting the scale of business operations. In addition, the world-famous auto parts manufacturers have come to invest and build factories in China. There have also been phenomena of increase in sole proprietorships, reductions in cooperation and joint ventures, and it is not conducive to upgrading the technology and management of domestic parts and components factories.

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