After many years of training and accumulation, some auto parts companies in China have already begun to develop their own research and development capabilities. However, domestic self-owned branded parts and components companies are still concentrated in low-end auto parts markets such as hubs, cylinder blocks, connecting rods, glass, filters, drum brakes, water pumps, radiators, flywheels, horns, friction disks, and batteries; The key parts and components of automobiles, such as engine management systems, electronic fuel injection systems, automatic transmissions, transmission systems, and brake systems, are still monopolized by foreign companies.

Therefore, in recent years, the domestic auto parts industry has been closed down almost all of the domestic self-owned brand companies, foreign companies in China's new and expanded key parts and components companies continue to increase. This is a phenomenon that deserves great attention.

According to statistics and estimates from authoritative organizations, in the auto parts industry in China, there are 55% of foreign-funded enterprises and 45% of foreign-funded joint ventures; the proportion of foreign-funded enterprises is only 20%, but it accounts for more than 80%. The automotive key parts and components market, more than 50% of sales revenue and total profits; domestic independent brand enterprises in the number of up to 80%, but it occupies less than 50% of sales revenue and total profits.

The foreign brands' OEM companies and host companies select component suppliers, pay attention to the original allocation, and have exclusiveness, and they almost do not consider accepting Chinese independent brand component suppliers.

For a long time, domestic self-owned auto parts companies with weak foundations and weak overall strength have been largely supported by domestic auto brands and host companies, mainly supplying domestic automakers and host companies with their own products. . Therefore, the market of China's own-brand auto parts companies is limited.

Under the situation that the sales volume of some domestic self-owned brand vehicles has continuously declined, the domestic self-owned brand vehicle companies will inevitably reduce the purchase volume of domestic self-owned brand components and increase the purchase volume of foreign brand parts and components in order to improve their product quality and market competitiveness. In this way, the development space of domestic auto brand auto parts enterprises will inevitably become smaller and smaller.

As a result of a combination of factors such as rising prices of raw materials, crowding out of foreign companies, bullying by vehicle companies, hollowing out of technology, and increasingly fierce market competition, the number of domestic auto parts companies that have closed down will inevitably increase.

There are currently about 200,000 auto parts companies in China, including more than 13,000 enterprises above designated size. At present, in the Chinese market, the top 100 auto parts suppliers with large production scale can only supply less than 50% of auto parts; in developed countries, the top 20 parts suppliers with larger production scale can supply 80 parts. % of auto parts. Some authoritative sources predict that in the next five years, the market will eliminate 90% of domestic auto brand auto parts companies; after 2020, the auto parts industry in China may only have about 2,000 companies left.

In any case, domestic self-owned brand companies will occupy a place in the low-end auto parts market. This is determined by the domestic auto brand auto parts companies' commitment to the low-end market over the years.

Domestic key brand auto parts companies cannot compete with strong foreign-funded companies in terms of technology accumulation, product development capabilities, business management capabilities, and production capabilities, and are easily squeezed out of the market.