With the rapid growth of China's automobile industry, the auto parts sector has also seen significant development. Over the years, several enterprises in Guangdong Province have actively engaged in technological research and independent innovation, achieving some progress. However, these efforts still fall short of meeting the demands of modern vehicle development. Ye Shengji, deputy secretary-general of the China Association of Automobile Manufacturers, highlighted that the auto parts industry in China lags behind, which hinders the overall growth of the automotive sector. He emphasized that accelerating the development of the auto parts industry is an urgent priority.
**Status: The Current Situation of the Auto Parts Industry in Guangdong Is Not Promising**
The 2013 Guangdong Auto Parts Industry Investment Promotion Conference was held in Zhaoqing, marking the first time that six auto parts industrial parks, including Zhaoqing (Gaoyao), were officially approved. This event was the largest investment promotion conference for the auto parts industry in Guangdong. Peng Ping, deputy director of the Guangdong Provincial Economic and Information Technology Committee, noted that the current state of the auto parts industry in the province is not optimistic and has had a negative impact on the broader automotive industry.
In 2012, Guangdong’s automobile industry generated a total output value of approximately 387 billion yuan, ranking third nationally, with passenger vehicle output value second in the country. The province is home to numerous well-known automakers such as GAC Toyota, GAC Honda, BYD, FAW-Volkswagen, and others, representing European, Japanese, and domestic brands. According to data from key enterprises, Guangdong’s auto vehicle output value is expected to reach 800 billion yuan by 2017, nearly three times that of 2011, potentially making it the top province in the country.
However, Peng Ping pointed out that despite this success, the auto parts industry in Guangdong is significantly lagging behind the整车 (whole vehicle) industry. The local matching rate is low, and the advantages of vehicle and electronic components are not fully utilized. In 2012, the output value of auto parts enterprises above the 2,000-yuan threshold reached 40.5 billion yuan, but compared to the whole vehicle output, the ratio was only 0.12:1, highlighting the gap in development.
**Outlook: A Lot Needs to Be Done for the Auto Parts Industry**
The auto parts industry is both technology- and capital-intensive, making it a major focus for investment. Industry experts believe that supporting local auto parts companies, cultivating industry leaders, promoting advanced R&D, and directing social capital into the sector will be key to future growth. Additionally, the global trend of auto parts procurement presents new opportunities for Guangdong-based companies.
China has become a critical low-cost destination for international auto parts procurement. As domestic competition intensifies and cost-cutting becomes more important, automakers from Europe, the U.S., and Japan have increasingly sourced parts from China. In 2012, China’s total auto product imports and exports exceeded $150 billion for the first time, reaching $162.241 billion, a 9.6% increase year-on-year. Export values rose by 11.2%, with auto parts accounting for $59.926 billion—also up 11.2%.
Guangdong, as a major foreign trade province, exported about $6 billion worth of auto parts in 2012, making up 10% of the national total. Looking ahead, leveraging its economic openness and export potential will be crucial in establishing Guangdong as the leading center for auto parts production and trade in China.
Experts from the Guangdong Modern Automotive Industry Development Research Institute identified several key strengths for Guangdong’s auto parts industry: the advantage of industry and electronics integration, strong logistics infrastructure, strategic location for open cooperation, and a large consumer market. Guangdong has consistently led the nation in auto consumption and is the largest import and export hub for auto parts. In 2012, retail sales of automobiles in the province surpassed 150 billion yuan, accounting for 30% of the province’s total retail sales. This strong and sustained demand provides a solid foundation for the future growth of the auto parts sector.
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