With the globalization of the automobile industry chain and the global procurement trend, the use of global resources to produce the best products at the lowest cost has become the constant pursuit of the world's auto parts companies. Under the influence of this force, parts and components Labor-intensive industries in the industry are shifting to low-wage-cost countries and regions. Because of its low-cost labor force and broad market potential, China has become the preferred place for international parts companies to transfer production. This provides a very favorable condition for combining the labor force elements of China with foreign technological elements, and thus brings opportunities for the development of China's spare parts industry, especially the labor-intensive component industry.

In addition, since the core technology of parts and components is more transferable than a complete vehicle, China's spare parts enterprises can also cooperate with multinational companies in technology and R&D, and form with international large parts companies (mainly in Europe, the United States, and Japan). Hierarchical supply relations, thus forming some companies with international competitiveness and facing the international market in the global division of labor system.

The great potential of the big country market is accompanied by the steady growth of the Chinese economy. The general improvement of people’s quality of life has led to a high demand for automobiles that has led to a high growth of the Chinese auto industry. China has the largest population in the world and is in the early stage of rapid growth of automobiles in the process of industrialization. The huge potential of the market in the future will make China become “the last piece of fat in the world’s auto market”.

International experience shows that the auto ownership rate increases as the per capita income of the country rises. A per capita GDP of 1,000 U.S. dollars is a sign that cars enter the average family; per capita GDP reaches 3,000 U.S. dollars,

Cars will enter the general family on a large scale.

Since the beginning of the 21st century, with China's economy growing steadily and steadily at an average annual growth rate of more than 7%, China’s auto ownership has accelerated its growth. China has a huge potential automotive market, and competitive labor cost advantages, supplemented by With China's strong manufacturing industry as a whole and raw materials, China's auto parts companies still have considerable competitive advantages in the international market. However, we should also see that China's auto parts industry has the unfavorable factors such as the small-scale and disorderly development of companies, insufficient investment in R&D, and other factors in participating in international competition.

From the standpoint of product competitiveness, most of our products with international competitiveness are labor-intensive and resource-intensive components, and the technical content requirements are not high. Given the large number of products in the auto parts industry and the inability of international monopoly to be formed, the selection of labor-intensive components as a product breakthrough can avoid disadvantages, give full play to their advantages, and rapidly increase their international competitiveness.

Based on the above analysis, we believe that those who have the potential to become future industry leaders will be able to firmly seize market segments, follow policy-oriented and market trends, occupy large market shares in the international market through large-scale production, and use the Companies that have invested or merged in capital markets to increase their technological capabilities and scale.