Industry Analysis & Industry Trends
The development of the Auto Parts Manufacturing industry is being driven by the fast-growing Automobile Manufacturing industry (IBISWorld industry report 3721) and strong growth in the number of automobiles in use across China. At the end of 2014, the total number of automobiles in use in China was nearly 154.5 million; this number is expected to continue increasing rapidly in future years.
China's accession to the World Trade Organization (WTO) in 2001 helped facilitate the development of the automobile parts and accessories market by encouraging an open and rational market structure. However, membership in the WTO also meant that China had to reduce its tariffs and nontariff barriers, and open up its service sector.... purchase to read more
Industry Report - Industry Investment Chapter
The Auto Part Manufacturing industry in China has a medium capital intensity level. For every dollar spent on wages (including management and administration costs and R&D), about 37 cents are invested in capital.
Large-scale production requires significant capital for the installment of automated processes, equipment and machinery. Significant investment is also needed to upgrade plant and equipment, and for process and product development. Many manufacturing processes involve repetitive activities that are automated to increase production speed and cost efficiency.
Small-scale manufacturers generally have lower capital investment levels than larger firms. This is due to the high cost of acquiring new equipment, which larger firms are usually more able to afford... purchase to read more