What Are the Development Trends in the Automotive Parts Industry?

[DeDelaney]

It exhibits four major trends: globalization of procurement, system integration, the gradual rise of modular supply, accelerated industry transfer, and increasing market share concentration among dominant enterprises. Below is relevant information: 1. Against the backdrop of global integration and facing increasingly fierce competition, major global automotive companies are reducing their in-house production rates of auto parts while expanding production scale, adopting a global procurement strategy for parts. Simultaneously, international parts suppliers, to maximize profits, are reducing or even ceasing production of products where they lack competitive advantages, instead procuring products with comparative advantages globally. 2. Intensifying market competition is compelling vehicle manufacturers to shift from purchasing individual parts to procuring entire systems. This shift not only allows vehicle manufacturers to leverage the specialized expertise of parts suppliers but also simplifies the product integration process and shortens the development cycle for new products.