Looking at the current auto parts industry, there are four major development trends:

 

① Globalization of procurement

 

       In the context of global integration, in the face of increasingly fierce competition, in order to reduce costs, the world's major automobile companies have gradually reduced the self-made rate of auto parts while expanding production scale, and adopted a global procurement strategy for parts. At the same time, in order to gain greater benefits, international component suppliers have reduced or even stopped the production of some of their non-competitive products, and instead sourced products with comparative advantages worldwide.

 

②System supporting and modular supply are gradually emerging

 

       Increasingly fierce market competition has forced OEMs to shift from purchasing individual components to purchasing entire systems. This change will not only help OEMs to take full advantage of the professional advantages of component companies, but also simplify the product matching process and shorten the development cycle of new products. As system suppliers become more and more deeply involved in the R & D, design, and production processes of new products by vehicle manufacturers, their technical and economic strength is gradually becoming stronger. The system matching has given birth to the modular supply of component companies. In the modular supply, component companies assume more new product and new technology development work. Vehicle manufacturers are increasingly relying on component companies in product and technology. Component companies are playing an increasingly important role in the automotive industry.