Going to sea is a key step for domestic auto parts enterprises to break through the plight of the involution and open up the international market, the following inventory of auto parts exports in 2024, sorting out the distribution and demand of the main global auto parts market, and providing auto parts enterprises with market dynamics and development direction prediction.
1. Overall Export of Auto Parts in China in 2024
According to data from the General Administration of Customs collated by China Association of Automobile Manufacturers (CAAM), the cumulative export value of auto parts and components products reached US$87.03 billion in January – October 2024, up 5.7% year-on-year.
The export situation of complete automobile vehicles is also outstanding. From January to October 2024, the number of automobile exports amounted to 5,284,900 vehicles, a year-on-year increase of 24.8%, and the total export amount was 98.304 billion U.S. dollars, a year-on-year increase of 18.6%.This growth is not a coincidence, but the result of a combination of factors.
Firstly, the continuous upgrading and technological innovation of the domestic auto parts industry have significantly improved the quality and performance of products and enhanced their competitiveness in the international market.
Secondly, the gradual recovery of the global automobile market, especially the growth of consumer demand for automobiles in emerging economies, provides a broad market space for China’s auto parts exports.
2. Market distribution and growth
In today’s globalized business landscape, the auto parts industry is characterized by diverse market distribution and growth.The following is a detailed analysis of the major markets in Asia, North America, Europe and Latin America.
01. Asian Markets
The Asian market has always been an important region for China’s auto parts exports.Geographical proximity makes the transportation cost relatively low and the delivery cycle shorter, which is conducive to meet the urgent needs of customers.
Asian emerging economies such as India, Indonesia and other countries in the rapid development of the automobile industry, the demand for auto parts products continue to increase.
China and Asian countries have been strengthening their industrial cooperation, which has further promoted the trade of auto parts products through the establishment of industrial parks and technical cooperation.
02. North American market
The U.S. is one of the largest automotive markets, with its auto parts demand market accounting for a quarter of the global share (Source: EWTO Research Institute) , and the U.S. is also one of the best-selling overseas markets for Chinese cross-border auto parts sellers.
By 2024, the U.S. passenger car fleet will be further aging, with the average vehicle age rising to 12.6 years, a record high.
Given the high cost of local labor, many car owners prefer to replace auto parts and perform routine maintenance by hand.In addition, a large number of car owners are keen on personalized DIY modification, making auto parts products in the United States has always maintained a strong rigid demand.
The report released by eBay further pointed out that the U.S. market demand for car and truck parts and accessories has grown significantly, in which the sales of air filter housing has doubled, and the sales of key parts such as brake calipers and shock absorbers have surged by more than two times.
E-commerce shopping behavior is also promoting the growth of the U.S. auto parts category, in recent years, the North American auto parts online growth rate of 12%, much higher than the offline 3.8%.In the future, online sales of auto parts products are expected to account for more than 20% of total sales.
03 . European Market
The demand for auto parts products in Europe, a traditional market, is not only huge, but also in the process of rapid expansion.
The European Commission forecast data show that in 2023 the European automobile and motorcycle parts market size will reach 1.2 trillion euros, an increase of 4.5%.
This increase is mainly due to the rapid increase in European car ownership and the popularization of new energy vehicles.
At the same time, European consumers’ pursuit of automobile personalization, comfort and safety has also greatly contributed to the rising demand for personalized accessories.
In the UK market, consumables and replacement parts account for more than 50% of the total auto parts demand, while engine parts account for 18% of the market share.
UK car owners tend to maintain their vehicles at home, making categories such as car wash tools, cleaners, polishing and waxing products popular.
According to eBay, due to the lack of new car manufacturing parts and new car supply chains, the demand for the used car rebuild market is particularly strong, with products such as car and truck shock absorbers and maintenance kits growing by more than 2.5 times.
The German tire market accounts for more than 40% of all auto parts demand.Germany has strict winter tire regulations, and October tends to be the time of year when people concentrate on buying winter tires.
In addition, the German market sees a surge in demand for automotive accessories such as fuel tanks, radiators, and driveshafts in 2023 (Source: eBay).
Both countries, which are also affected by snow and ice weather conditions, show a concentrated growth in the demand for skid chains and skid tires between October and December every year.
04. Latin American markets
Latin America’s auto parts demand is very large, perhaps with the relatively low level of local automobile manufacturing, maintenance parts demand is greater.Among them, Mexico is one of the countries with the most automobile exports from China.
After a trough in 2020, China’s exports of vehicles and parts products to Mexico have made a strong recovery, growing 44.6% year-on-year to 2022 and 97% compared to 2018.
In Latin America, automotive spare parts and decorative accessories are hotter, and these relate to maintenance needs.
In addition, external in-car multimedia devices produced in China, with their advanced functions and excellent performance, have also won wide acclaim in Latin America.
3. Market category demand analysis
In different countries, different categories of products have their own unique market demand characteristics and development trends.
01. Tires
Tires are one of the important categories in the auto parts field.The U.S. and European markets have a high demand for Chinese tire products, which is mainly due to the advantage of Chinese tires in terms of price/performance ratio.
However, these markets often have strict model and certification requirements for tires.
For example, the U.S. market has clear regulations on indicators such as wet grip and abrasion resistance of tires, while the European market emphasizes the environmental performance and low-noise characteristics of tires (source: reports from market research institutes).
Therefore, Chinese tire companies need to pay close attention to changes in market standards, and continuously improve product quality and performance to meet the needs of different markets.
02. Head and tail lights
In the field of automotive lighting, Jiangsu and Zhejiang regions are rich in resources in the manufacture of LED lamps, making automotive headlamps an important export category.
With the development of automotive intelligence and electrification, the lighting effect, energy-saving performance and intelligent control of headlamps and taillamps are increasingly demanding.
For example, technologies such as adaptive headlamps and matrix headlamps are gradually becoming standard in high-end models (Source: industry research report).
Chinese auto parts companies need to increase R&D investment and enhance the technological content of their products to adapt to the market development trend.
03. Bumper
Zhejiang and Shandong regions, as the main production bases of bumpers, provide sufficient supply for export.The U.S. market has a high demand for bumpers for pickup trucks, which is related to the usage habits and road conditions of U.S. consumers.
However, different countries and regions have different requirements for bumper material, strength and appearance design.
For example, the European market pays more attention to the lightweight and anti-collision performance of bumpers, while the Japanese market has higher requirements for the exquisite appearance of bumpers (Source: Industry Analysis Report).
Therefore, enterprises need to customize their production and export of bumpers according to the characteristics of the target market.
04. Vibration dampers
Countries such as the United States, Germany, the United Kingdom, and Australia have a strong demand for China-made vibration dampers.The quality and performance of shock absorbers have a direct impact on the driving comfort and maneuverability of automobiles.
Consumers in these countries have higher requirements for the driving experience of their cars, and therefore have a higher demand for high-quality vibration dampers (Source: Market Demand Survey Report).
Chinese shock absorber companies need to continuously improve their product R&D capabilities and manufacturing processes to meet the high performance requirements of the international market for shock absorbers.
05. Turbocharging
Turbocharging products are more popular in the U.S., German, and U.K. markets, and most of them are tuning parts.
As the pursuit of automotive power performance continues to improve, the application of turbocharging technology in automotive engines is becoming more and more widespread (Source: International Automotive Market Research).
Chinese turbocharging enterprises need to strengthen cooperation with the international tuning market, understand the latest tuning needs and trends, and launch personalized products that meet market demand.
06. Auto Glass
Auto glass is mainly exported to the United States, South Korea, Germany, Japan and other automotive powerhouses.These countries have large automobile production, and have strict standards for the quality, optical properties and safety performance of automotive glass (source: auto glass industry research).
Chinese auto glass enterprises need to adopt advanced production technology and equipment in the production process to ensure that their products comply with international standards, and continue to introduce auto glass products with innovative features, such as heat-insulating glass and UV protection glass.
07 .Car foot mat upholstery
China has a clear advantage in production resources in the field of interior trims such as automobile foot mats and seat covers.However, there are differences in the style, material and environmental requirements of interior products in different markets.
For example, the European market prefers environmentally friendly and minimalist interior products, while the U.S. market prefers luxurious and comfortable interior styles (Source: Interior Market Analysis Report).
Therefore, enterprises need to design and produce products according to the demand characteristics of different markets.
4. Conclusion
China’s auto parts export performance will be strong in 2024, with the market distribution mainly focusing on Asia, North America and Europe, and the demand for market categories diversified.For auto parts factories and distributors, this is both an opportunity and a challenge.
Through in-depth understanding of market demand, continuous improvement of their own strength, and the development of a reasonable strategy to go to sea, will certainly win a broader space for development in the international market.
Article source: Auto Parts Circle
