The auto parts industry is gradually advancing to the central and western regions, and the number of enterprises accounts for more than 20%. The central and western auto parts enterprises continue to rise. Under the pressure of rapid market iteration, most independent component companies despise R&D investment and have been in a state of following for a long time. The following is an analysis of the status quo of the auto parts industry.

　　The continuous growth of auto production and sales has driven the development of the auto parts market. In recent years, the scale of my country's auto parts market has maintained growth. In 2018, auto parts sales revenue was nearly 4 trillion yuan. By 2019, my country's auto parts market may reach 4.38 trillion yuan. The auto parts business report pointed out that the average compound growth rate for 2019-2023 is about 7.15%, and it will reach 5.77 trillion yuan in 2023.

　　In China, with the rapid development of China's automobile industry, the number of domestic cars has increased year by year, and more and more cars are scrapped. The waste of resources and environmental pollution caused in the process of automobile scrapping has made domestic resources more tense and environmental pollution. Even worse, as the country pays more and more attention to resource conservation, energy conservation, emission reduction and circular economy today, the remanufacturing of auto parts has also received attention from relevant government departments and has begun to develop. Now analyze the status quo of the auto parts industry from the three major market conditions.

　　Affected by the overall sluggish macro environment of the auto industry, the profit level of auto parts has also shown a downward trend. According to the statistics of the Prospective Industry Research Institute, in 2014, the profit of my country's auto parts segment reached 21.31%, and by the first half of 2019, it had dropped to 19.63%. Analysis of the status quo of the auto parts industry shows that the current status of China's auto parts companies is, on the one hand, "dragged" by vehicle companies; on the other hand, due to the upgrading of China's own brand products, more high-quality imported parts are used.

　　Benefiting from the support of industrial policies and the global integration of auto parts procurement, my country's auto parts exports remain stable, and the main export countries and regions are the United States, Japan, and the European Union, which are industrially developed. Analysis of the status quo of the auto parts industry shows that in 2017, the total export value of auto parts was 63.778 billion U.S. dollars, maintaining above 60 billion U.S. dollars.

　　In the domestic auto parts market, foreign and Hong Kong, Macao and Taiwan-invested enterprises only account for 49.25%, but their market share is as high as 70%. Analysis of the status quo of the auto parts industry, and in high-tech fields such as automotive electronics and key engine parts, the market share of foreign capital is as high as 90%. In the field of engine management systems (including electronic injection), ABS and other core components, foreign-funded enterprises accounted for 95% and 90% of them, respectively.

　　As my country’s auto parts industry has lifted its shareholding restrictions, foreign auto parts giants have built factories in the Chinese auto market in the form of sole proprietorship or holding joint ventures, providing supporting parts to joint venture brand auto companies, occupying the Chinese auto parts market. The higher market share has grabbed huge profits and squeezed the living space of local parts companies.