With the domestic automobile market entering the stage of structural competition, relevant enterprises have opened the globalization strategy by going to sea. In the context of the broad development space in the overseas new energy vehicle market, going to sea is expected to provide new development opportunities for domestic parts companies. "The general car and parts of the zero ratio is 1:3 (a variety of original parts of the cost of a car is three times the price of the vehicle), in the overseas new energy vehicle market is booming driven by domestic auto parts companies to go to sea business will certainly do a lot." Yan Shuai, general manager of Guangdong Yuincubated Industry Big Data Research Co., LTD., said in an interview with Securities Daily. According to data released by Expert Market Research, the global auto parts market size is about 380 billion US dollars in 2020 and is expected to grow to 453 billion US dollars by 2026, with a compound annual growth rate of 2.97%.
Oriental Securities data show that from 2021 to 2023, China's new energy passenger vehicle penetration rate has increased rapidly, and the sales penetration rate of new energy passenger vehicles from January to November 2023 is 34.3%, an increase of 6.1 percentage points over the same period in 2022. From January to November 2023, China's auto parts exports reached 563.364 billion yuan, an increase of 14.6%. There are many types of auto parts involved, and from the classification of listed companies in the A-share market, it involves multiple subdivisions such as intelligent, thermal management, automotive electronics, electric drive motors, lightweight and structural parts, and charging and replacing. Cicc said that China's auto parts exports have continued to grow in the past 30 years, and the past three years have been particularly fast. At the same time, Chinese auto parts companies continue to develop overseas markets. Data show that from 2010 to 2022, the average overseas income of the A-share auto parts sector has increased rapidly from 7% to 25%. Dai Chang, chief analyst of the automotive industry at Guohai Securities, said that as of the end of 2023, a number of Chinese auto parts companies have entered the production stage of their production bases in Mexico, and the overseas business of some companies is expected to turn from losses to profits in 2024.
"It is a positive development trend for auto parts companies to open their global business and help companies expand their market share. By establishing production bases and procurement networks on a global scale, companies can make better use of local resource advantages, reduce production costs and optimize the supply chain structure." Liu Chunsheng, associate professor of Central University of Finance and Economics, told Securities Daily. Recently, A number of A-share listed auto parts companies have announced the development of their global business. Desai Siwei recently revealed that the company has comprehensively promoted the internationalization strategy, accelerated the construction and expansion of overseas research and development manufacturing bases, and invested more resources to develop international business. For example, the production capacity of the second factory of European companies has gradually increased, the construction of 3D laboratories has been orderly carried out, and research and development and service supporting facilities have been further strengthened. Automotive electronic products and parts system supplier Huayang Group told reporters: "The company continues to increase overseas market development and has made good business progress." At present, the automotive electronics business has obtained projects from Honda, Toyota, Hyundai Group and other customers; Precision die casting business for Bosch, BorgWarner, Continental, ZF and other overseas customers supporting products; At the same time, we actively cooperate with independent brand car companies to go to sea, and have obtained a number of independent brand overseas platform projects, and actively promote the landing of overseas production bases."
Focusing on the field of new energy vehicle thermal management system, Sanhua Intelligent control revealed that the company's customers are all over the world in Europe, America, Asia and other places, and has established overseas production bases in the United States, Mexico, Poland, Vietnam and other places, and the global production and supply layout has been formed. Topu Group recently released a 2023 performance forecast, is expected to achieve a net profit of 2.05 billion yuan to 2.25 billion yuan during the reporting period, an increase of 20.58% to 32.34%. For the reasons for the pre-increase in performance, the company said that the sales of lightweight chassis, thermal management and other businesses grew rapidly, the automotive electronics business ushered in a harvest period, and a number of projects such as smart electric door systems were gradually mass-produced, the proportion of international business continued to increase, and the value of bicycles supporting the head intelligent electric vehicle enterprises continued to increase. Orient Securities auto analyst Jiang Xueqing said that in order to accelerate the internationalization strategy, some auto parts companies in recent years through the implementation of raised funds to invest in projects to build overseas factories. At present, a number of companies' overseas business profit turning point has appeared, and it is expected that the proportion of profit contribution will gradually increase. After some auto parts companies put into production overseas orders, overseas factories are also expected to gradually realize losses. "With the maturity of overseas factory operations, domestic auto parts companies are expected to obtain recognition from overseas customers, continue to develop new customers and new projects, promote the expansion of overseas factory supporting categories, and achieve the increase of bicycle value." Hong Yong, a think tank expert of China's digital Reality Integration 50 Forum, said.
