(1) Overview of Global Automotive Parts Market Development: The automotive parts industry in developed countries has developed over a long period of time and has become characterized by large scale, strong technical strength, sufficient capital strength, high industrial concentration, and global synchronous support. According to the "Top 100 Global Automotive Parts Suppliers List" released by Automotive News from 2021 to 2023 (ranked annually based on the previous year's revenue), the top 100 global automotive parts companies are mainly distributed in major global automotive production and sales countries such as Japan, the United States, Germany, South Korea, and China. The top ten suppliers on the list have achieved operating revenues exceeding 10 billion US dollars in each year, concentrated in traditional automotive industry powerhouses such as Japan, the United States, and Germany. As the production focus of the global automotive industry gradually shifts towards emerging markets represented by China and India. In the 2023 ranking, Chinese power battery company CATL ranks among the top five. The number of Chinese automotive parts companies on the list has also increased from 78 in 2021 to 103 in 2023, and the ranking of Chinese companies on the list has improved to varying degrees.

Data source: American Automotive News

(2) Overview of the Development of China's Automotive Parts Market As a core link supporting and influencing the development of the automotive industry, automotive parts will play a crucial role in building an automotive technology innovation system, promoting the transformation and upgrading of the automotive industry, and sustainable development under the new requirements of "Made in China 2025" and the strategy of building a strong automotive country. At present, China has basically established a relatively complete system of parts supply and after-sales service, providing strong support for the development of the automotive industry. The rapid development of the automotive industry directly drives the high-speed development of China's automotive parts industry. In recent years, thanks to the growth of production and sales scale in China's automobile market, the continuous transfer of global vehicle and component production capacity to China, the expansion of the automobile parts export market, and technological upgrades within the industry, China's automobile parts industry has maintained a high-speed development trend. According to relevant statistics, the market size of China's automotive parts industry exceeds 5 trillion yuan. Based on the current favorable trend of consumer recovery in China's automobile market and rapid growth in the production and sales of new energy vehicles, the automotive parts industry also has good growth expectations.

(3) At present, the development trend of China's automotive parts market mainly includes the following directions:

① The "Medium - and Long Term Development Plan for the Automotive Industry" points out that the automotive production mode is evolving towards a fully interconnected and collaborative intelligent manufacturing system, and the upstream and downstream relationships of the industry are becoming closer. Joint development between vehicle manufacturing enterprises and suppliers, with suppliers participating in the entire process of component design, development, experimental verification, etc. The suppliers provide overall solutions for vehicle manufacturing enterprises; The integration and modularization of automotive components refer to the integration of functions that were previously implemented by multiple components into a single module component through new designs and processes, achieving the technical means of replacing multiple components with a single module component, and improving the degree of universality and standardization. Deep cooperation between vehicle manufacturing enterprises and component enterprises in research and development, procurement, and other aspects can help establish a safe and controllable key component matching system, promote the systematic upgrading of automotive vehicle and component manufacturing technology and processes, and promote the coordinated development of the entire industry chain.

② Lightweight components are one of the important ways for traditional fuel vehicles to save energy and for new energy vehicles to improve their range. At present, the measures for lightweighting automobiles both domestically and internationally mainly include lightweight design and the use of high-strength and lightweight materials, such as high-strength steel, aluminum alloy, magnesium alloy, carbon fiber, plastics and other new automotive materials. Among them, plastic has the characteristics of light weight, easy molding, strong corrosion resistance, and elastic deformation. Increasing the use of plastic components in the entire vehicle can reduce the cost and weight of the vehicle, and increase the effective load of the vehicle. Therefore, the development trend of automotive lightweighting will increase the share of automotive plastic parts in automotive components, bringing more development opportunities to the upstream automotive plastic parts industry.

③ In recent years, China's automotive parts companies have continuously improved their market competitiveness through independent research and development of technology accumulation, deep cooperation with multinational automotive parts manufacturers, and other means. Currently, some high-quality parts companies have the ability to independently assemble basic components and gradually break the monopoly of foreign-funded enterprises in the core component field. The number of Chinese automotive parts companies on the Global Top 100 Automotive Parts Suppliers list released by Automotive News has increased from 8 in 2021 to 13 in 2023, and the ranking of Chinese companies on the list has improved to varying degrees. With the rapid development of China's new energy vehicle industry and the emergence of new forces in domestic car manufacturing, it can drive the development of local supply chains, especially in the field of new energy vehicle components, providing opportunities for domestic substitution and bringing new development opportunities to the automotive parts industry.