China's auto parts industry is developed along with the vehicle industry. Before the 1980s, the auto parts industry developed relatively slowly. After the 1980s, through the continuous technology introduction and transformation of component companies, separation from vehicle manufacturers, and private enterprises through the methods of reducing costs, improving production processes, improving product quality, the domestic auto parts industry has developed rapidly. After joining the WTO, due to the further opening of the auto parts market, international auto parts companies are optimistic about China's fast-growing auto market and low-cost advantages, and accelerate the process of establishing joint ventures or wholly-owned factories in China. During the "10th Five-Year Plan" period, under the impetus of the national industrial policy and the rapid growth of the automobile industry, the technical level and production management level of China's auto parts enterprises have been greatly improved, forming a large number of powerful parts manufacturing enterprises. Some of the companies that have developed rapidly have already had strong market competitiveness. The products have entered the global procurement network of vehicle manufacturers and entered the mainstream markets such as Europe, America and Japan.
At present, China has become the world's largest automobile consumer market. The world-famous automobile manufacturers set up factories in China through various means. China's automobile market has gradually developed into a buyer's market. The market competition will become increasingly fierce, and the continuous decline in vehicle prices will be An irreversible trend. As the vehicle manufacturers are relatively concentrated, in order to pass on the production cost, it is inevitable that the component suppliers will reduce the cost and lower the price. Therefore, the overall bargaining power of the auto parts enterprises is weak, and more technological innovations and process optimization are needed to adapt to the market demand. At the same time maintain its own profitability.