ShaoXing Change Auto Synchronizer Ring Co.,Ltd , https://www.sxcjautoparts.com
**Abstract**
In the first half of 2013, a comprehensive review of the auto parts industry’s development over the past six months revealed a positive trend. The market showed signs of recovery, with improved data and increased confidence among industry players. This period marked a glimmer of hope for the auto parts sector, especially in key areas such as engines, transmissions, and automotive electronics. These segments are increasingly focusing on energy efficiency, smart technology, and connectivity. As we analyze this growth, we also aim to identify emerging trends that will shape the future of the industry.
The production and sales figures for vehicle engines released during the first half of the year were particularly encouraging. Engine production reached 9.947 million units, while sales hit 99.28 million units—both rising by 11.87% and 10.68%, respectively. These numbers suggest a recovering market. Similarly, listed auto parts companies reported slight increases in operating income and net profit, showing an overall upward trend. This reflects growing optimism within the sector.
Amidst market adjustments, the pace of industrial technological upgrades has accelerated, particularly in the areas of energy efficiency, environmental protection, and safety. Major auto parts companies have seen significant changes in their product structures, with new products and markets driving much of the growth. Foreign-invested companies have shown strong market penetration, with more focus on advanced technologies and product innovation.
**New Products and New Markets Are Growing Rapidly**
Across various segments—including engines, transmissions, automotive electronics, axles, and motors—new products and emerging markets are experiencing rapid growth. In the engine sector, natural gas-powered vehicles saw a sharp increase, with 43,562 units sold in the first half of the year, doubling the previous year's figure. Xichai, a leading engine manufacturer, expanded its presence in non-road machinery, buses, and overseas markets. From January to May, it exported nearly 6,000 engines, marking a 14.7% increase compared to the same period last year.
In the heavy-duty transmission market, Fast performed well despite a challenging environment. While the domestic heavy truck market declined by 17%, Fast experienced growth, with production, sales, and revenue all increasing by over 10%. Its new products gained traction in the passenger car, overseas, and lightweight segments. Light-weight transmission sales are expected to jump from 35,000 units last year to 100,000 this year, driven by strong demand and international expansion.
In the automotive electronics field, Hangsheng, a leading company, expects about 40% of its revenue to come from new products this year. Its upgraded in-vehicle infotainment systems have secured numerous new orders, maintaining a 20% growth rate. The company has also expanded into body control electronics and secured orders for TPMS (tire pressure monitoring systems) from major automakers like FAW, Jianghuai, and Great Wall. Additionally, it signed a strategic agreement for 100,000 Beidou navigation vehicle terminals.
With the rise of new energy vehicles, connected cars, and lightweight technologies, related auto parts and materials are also seeing rapid development. Market restructuring effects are expected to continue throughout the second half of the year.
**Foreign-Funded Parts Companies Perform Strongly**
At the Shanghai Auto Show in April, foreign parts companies were highly visible, with major players like Bosch, Delphi, Visteon, Aisin, and BorgWarner showcasing their latest innovations. Their messages emphasized a strong commitment to the Chinese market, including plans for increased investment, local R&D centers, and expansion strategies. According to their reports, China accounts for roughly 10% of the global market, with ambitions to reach one-third or even higher in the future.
The sheer size of the Chinese market continues to attract multinational parts companies. Since last year, the localization process of these giants has accelerated significantly. This includes not only product and talent localization but also a deeper understanding of China’s policies and market demands. Many of the products showcased at the Shanghai Auto Show align with national energy-saving and environmental regulations.
Moreover, foreign companies are deepening their partnerships with local automakers. Joint ventures between Chinese automakers and foreign parts firms have continued to grow. For example, ZF and Zhaben Heavy Duty formed a joint venture in Chongqing, while Shaanxi Auto Parts and Eberhoff established a partnership to provide emission-compliant after-treatment systems. Faurecia and Changan Group also announced a new joint venture, and Faurecia signed a three-year collaboration with FAW Foundry to develop a magnesium alloy seat frame.
These expanding capabilities, growing market shares, and accelerating localization efforts signal a strong push by multinational auto parts companies into the Chinese market. This trend is expected to continue through the second half of the year.
**Policy Becomes the Driving Force for Industrial Transformation and Technology Upgrades**
Fu Yuwu, chairman of the China Automotive Engineering Society, highlighted that the future of automotive technology will revolve around energy conservation, environmental protection, and safety. The four key trends—electrification, miniaturization, lightweight design, and intelligence—are central to the industry’s transformation and upgrading.
Industry policies have played a crucial role in driving these changes. In the second half of 2013, many parts companies will face increasing regulatory pressures. Policies such as the “Methods and Indicators for Evaluation of Passenger Vehicle Fuel Consumption†issued by the Ministry of Industry and Information Technology and the “Opinions of the General Office of the State Council on Strengthening Energy Saving and Emission Reduction of the Internal Combustion Engine Industry†have been instrumental in promoting technological progress.
Wei Anli, deputy secretary general of the China Internal Combustion Engine Industry Association, explained that the current policy focus is on supporting industry leaders to build stronger innovation systems, enhance independent research capabilities, and drive technological upgrades. These efforts are already yielding positive results and are becoming a key driver for the industry’s long-term development.