Automotive Lightweighting & Localization Trends Accelerate Domestic Enterprise Growth

1. Market Overview of China's Automotive Components Industry

The upstream sector of automotive components manufacturing primarily involves raw material suppliers, including metals, electronic materials, plastics, rubber, wood, glass, ceramics, and leather. The midstream encompasses diverse component categories, spanning parts, subassemblies, assemblies, and integrated systems. The downstream includes automakers, 4S dealerships, repair shops, parts distributors, and vehicle customization providers.

Within China’s mature automotive industrial chain:

• OEMs focus on vehicle design, assembly, and branding;

• Components suppliers specialize in modular and systemic R&D, design, and manufacturing. Suppliers are classified as Tier 1, Tier 2, and Tier 3, based on integration levels.

2. Production & Sales Data (2023)

• Total vehicle production: 30.161 million units

• Total vehicle sales: 30.094 million units

These figures highlight both the vast market potential and rising consumer demand driven by improving living standards.

3. 2024 Outlook (China Association of Automobile Manufacturers, CAAM)

In 2024, China will adhere to the principle of “maintaining stability while pursuing progress”, prioritizing market confidence restoration and domestic demand expansion. Policymakers aim to foster holistic economic recovery, balancing qualitative enhancements with rational quantitative growth.

Supported by targeted automotive industry policies, these measures are expected to:

• Stimulate market vitality and consumer engagement;

• Boost sector-wide economic resilience;

• Reinforce optimism for sustainable industry transformation.