China Auto Parts Exports Hit $13.25 Billion, Up 30% Year-To-Year

SHANGHAI - December 7, 2007:

In the first ten months this year, China exported $13.25 billion worth of auto parts products, up 30 percent year-on-year, China’s Ministry of Commerce said.

"The total auto parts exports in the first nine months have surpassed the total exports last year," said Wang Qinhua, deputy director of State Imports and Exports office of Mechanical and Electricity Products.

"China-made auto parts are increasingly recognized by global automakers and entering global OEMs sourcing lists,” Wang added.

"China’s total automobile output is expected to reach 9 million units this year and the country is likely to become the second largest automaker in the world,” said Huo Guangyi, chairman of the Automobile and Motorcycle Parts Division of All-China Federation of Industry and Commerce.

Huo said that China has 4,712 major auto parts suppliers, which yields a total output value of 550 billion yuan ($74.40 billion).

Last year, China exported a total value of $11.5 billion of auto parts, up 35 percent from one year earlier.

"All global auto parts giants listed in world top 500 have business operations in China,” Huo said. “They have established either joint ventures or wholly owned businesses in China.”

Despite its rapid growth in recent years, China’s auto parts industry is still plagued by many problems, such as low industry concentration, lack of widely recognized brands and weakness in high technology, Huo said.

Furthermore, auto parts business in China is becoming less profitable due to intensifying competition and fast growing operation costs, Huo added.

For more information about the burgeoning auto industry in China please visit http://www.gasgoo.com/Autobiz/list/7/China-News.html