"Going global" has become one of the most significant keywords for the Chinese automotive industry in recent years.
In 2023, the total export volume of Chinese automobiles reached 5.221 million units, a year-on-year increase of 57.4%. The total value of exported vehicles reached $101.6 billion, with an annual growth rate of 69%. Both the total export volume and total value ranked first in the world. The competitiveness of China's automotive industry in the global market is continuously enhancing, and this improvement is evident not only in complete vehicles but also in the auto parts industry.
According to data from the General Administration of Customs, in the first half of this year, China's auto parts export value reached 324.6 billion yuan, while the total export value of complete vehicles (including chassis) was 391.76 billion yuan. Auto parts have become an important category in China's cross-border e-commerce exports.
Statistics from the eBay platform indicate that over the past decade (2015-2024), sales of auto parts exported by Chinese sellers have seen tremendous growth. Notably, the sales of headlamp and taillight assemblies have increased nearly 20 times, bumpers have surged 59 times, steering gears have grown nearly 200 times, air conditioning compressors and clutches have expanded nearly 300 times, and catalytic converters have soared over 1000 times. In just 2023, auto parts sellers in the Yangtze River Delta region recorded sales growth of over 20% for automobile lights, steering components, and suspensions on the eBay platform, while sales of automotive lights and brake-related parts grew by over 70% and 110%, respectively.
Recently, Lin Wenkuai, General Manager of eBay's International Cross-Border Trade Division for the Greater China Region, stated at the "Auto Dynamics Globally, Win on eBay—eBay Greater China Auto Parts Industry and Ecology Summit Forum" held in Changzhou, that this year, for the first time, eBay has chosen Changzhou and Shenzhen to convene Chinese automotive parts sellers for a conference focused on the development of the supply chain and ecosystem.
Ye Junhong, the head of Jiangsu Dachen Optoelectronics Technology Co., Ltd., who registered for auto parts cross-border business on eBay back in 2009, has experienced the rapid growth of this industry. Having transitioned from trading engine parts in earlier years to focusing on collision and easily damaged parts in recent years, their factory is located in the Menghe Town of Changzhou's automotive parts production cluster, where over 95% of the import-export trade is composed of automotive products. In Ye’s words, “Now, even the pancake vendors in the little town are talking about cross-border e-commerce!”
As an early entrant into the auto parts cross-border e-commerce sector, Song Lei, founder of Shanghai Yinshi Network Technology Co., Ltd., believes that “the worse the economic environment, the greater the demand for auto parts.” In times of robust economic growth, consumers are more likely to purchase new cars; however, during economic downturns and soft consumption, they will opt to repair their old cars, thus leaning towards buying parts. "Sales of auto parts are inversely related to the sales of complete vehicles and mirror the economic situation," he added.
However, there are still numerous challenges for Chinese auto parts going global. On one hand, due to the vast array of categories, it has been difficult for any auto parts to achieve blockbuster status, making flexible production a significant challenge. On the other hand, logistics remains a major hurdle for auto parts cross-border e-commerce, currently accounting for around 45% of the total cost of exporting auto parts. Additionally, challenges related to patents and compliance cannot be overlooked.