The performance of the auto parts sector will improve in 2024

Industry insiders believe that driven by the rapid growth of the new energy vehicle market and the continuous efforts of national policies, the auto parts industry has shown strong resilience. Many companies have promoted steady performance improvement through coordinated efforts in domestic and foreign markets, technological innovation and global layout.

Wu Gaobin, Secretary-General of the New Productivity Committee of the China Association for Promoting Democracy, analyzed to reporters that the increase in sales of new energy vehicles in my country has brought more orders and market share to auto parts companies. At the same time, the Chinese government attaches great importance to the new energy vehicle industry and has introduced a series of policy measures, such as car purchase subsidies and exemption from purchase tax, which also provide strong guarantees for the development of the new energy vehicle industry. It is expected that the overall performance of the auto parts industry will maintain stable growth in 2024.

In addition, under the wave of "going overseas", my country's auto parts companies are exploring foreign markets through factory construction, mergers and acquisitions, etc., which is also an important reason for the performance growth of many companies in 2024. Ji Xuehong, director of the Automotive Industry Innovation Research Center of North China University of Technology, told reporters that overseas market expansion is gradually becoming a key opportunity to promote industry growth. In recent years, my country's auto parts exports have continued to grow, laying a solid foundation for further expansion of overseas markets. The overseas market of auto parts companies is expected to continue to expand.

With the continuous expansion of the new energy vehicle market, the demand for core components such as batteries, motors, and electronic controls will become increasingly strong, and related parts companies will usher in more orders and profit margins. On the other hand, with the support of national policies and the transformation and upgrading of the automobile industry, parts companies are expected to make breakthroughs in technological innovation, product upgrades, and other aspects, and further improve their performance.

The current global automotive industry is in a period of profound change, and the trend of electrification, intelligence, and networking is unstoppable, which provides Chinese auto parts companies with an opportunity to "change lanes and overtake". Domestic auto parts companies have increasingly accumulated profound technology in the fields of new energy vehicles and intelligent networked vehicles, and some companies have the strength to compete with international giants. In addition, domestic parts companies continue to strengthen brand building and continuously optimize supply chain management, so that the competitiveness of both domestic and foreign markets continues to improve.