Through continuous development, the automotive industry has evolved into an integrated sector characterised by long production cycles, a high degree of coordination and large-scale manufacturing, and is heavily reliant on the automotive parts supply chain. A single car comprises as many as ten thousand components, which are supplied to vehicle manufacturers by suppliers at various levels of the upstream supply chain; consequently, the healthy development of the automotive parts industry is of paramount importance to the automotive sector as a whole.

Through continuous growth and expansion, component manufacturers have acquired certain specialist technologies and manufacturing processes, including design, research and development, manufacturing, inspection and quality assurance. In order to limit the number of suppliers with whom they deal directly, vehicle manufacturers generally delegate authority to component manufacturers, and the automotive components industry has gradually developed a ‘pyramid’-style supply system.

(1) Developments in the global automotive components market

At present, automotive component manufacturers in developed countries continue to dominate the global market. According to the 2024 and 2025 Global Top 100 Automotive Suppliers rankings published by Automotive News, the number of companies from Japan and the United States featured in the 2024 list remained unchanged from 2023; Germany saw an increase of one company compared with 2023, bringing the total to 17; the number of Chinese companies increased by two compared with 2023, rising to 15. In 2025, the number of German companies on the list fell by one year-on-year, whilst the numbers for China, the US, Japan, South Korea and France remained unchanged from the previous year.

(2) Development of the Chinese automotive components market

Following years of development and growth, China’s automotive components industry has gradually expanded and matured. It has moved beyond the pattern characterised by ‘a large number of small enterprises and severe product homogenisation’, and has established a comprehensive components system with a complete industrial chain, providing a reliable foundation for the rapid development of China’s automotive industry.

(3) Developments in the automotive aftermarket

The automotive aftermarket refers to the collective term for a series of commercial activities centred on the various needs and services associated with the use of a vehicle from the time of sale until it is scrapped, encompassing a range of sub-sectors such as vehicle repair, maintenance and automotive accessories. The demand for parts for vehicle repair and maintenance constitutes another key component of the automotive parts market.

There are three main approaches to maintenance and repair in the automotive aftermarket: DIFM (Do It For Me) services at 4S dealerships (which supply parts and provide the service), DIFM services at third-party repair shops, and DIY (Do It Yourself) services, where customers purchase and fit parts themselves.

In developed countries such as Europe and the United States, all three models are relatively common. For example, the United States has a well-established third-party chain automotive repair industry spanning all states; at the same time, due to the culture of car customisation, the self-service model also holds a certain market share. In Japan, several major automotive manufacturers are the primary suppliers to vehicle repair workshops; their directly operated or franchised authorised service centres command a high market share due to their uniform standards and technical expertise. In China, the automotive aftermarket is still in its early stages of development. Due to low barriers to entry, inconsistent service standards and low consumer confidence, the third-party repair sector accounts for a relatively small share of the market.

(4) Development Trends in the Automotive Components Industry

① The competitiveness of the domestic automotive components market is gradually increasing

The rapid development of China’s automotive industry and the growing influence of domestic car brands have driven an increase in the rate of domestic substitution for automotive components. In order to reduce costs and provide efficient services, many internationally renowned automotive component manufacturers have chosen to invest in building factories in China; at the same time, the manufacturing standards of domestic automotive component manufacturers have gradually improved, giving them a competitive edge in terms of cost, quality and service. Vehicle manufacturers are increasingly inclined to source automotive components, including high-end core components, from domestic suppliers, thereby accelerating the trend towards domestic substitution in China’s automotive components sector.

According to figures released by the General Administration of Customs, the value of China’s automotive parts exports has been rising steadily, whilst the gap between export and import values has been widening year on year; domestically produced automotive parts are gradually gaining recognition from international car manufacturers.

In developed countries such as Europe and the United States, the automotive industry has a long history, a comprehensive supply chain and a high level of vehicle ownership; as a result, the automotive aftermarket is generally well-established. Large automotive repair and aftermarket chains have emerged in these markets; with their comprehensive product ranges, well-developed service systems and extensive sales channels, these enterprises have significantly driven the growth of the automotive aftermarket. In developed countries such as Europe and the United States, the automotive aftermarket accounts for nearly 70.00 per cent of the entire automotive industry, whereas in China it currently accounts for only 11.00 per cent.

China has introduced a series of policies to promote the development of the automotive aftermarket. Seventeen departments, including the Ministry of Commerce and the National Development and Reform Commission, have issued the ‘Notice on Several Measures to Revitalise the Automotive Distribution Sector and Expand Automotive Consumption’, which explicitly states that unreasonable restrictions on second-hand car dealerships are to be lifted, the commercial circulation of second-hand cars is to be promoted, and the large-scale development of the second-hand car market is to be supported. At present, third-party repair shops in China’s automotive aftermarket are developing rapidly, with outlets such as TuHu Auto, Tmall Auto and JD Auto—which wield considerable influence within the industry—continuing to expand both in terms of the number of branches and market share.

As a major player in the automotive industry, China’s total vehicle fleet has now surpassed that of the United States. With the increasing age of vehicles in China, the growing maturity of the second-hand car market and the gradual development of the aftermarket, the scale of China’s automotive aftermarket is set to continue expanding. According to a report, the market for vehicle maintenance and parts replacement in China was valued at 966.5 billion yuan in 2022. It is projected to grow at a compound annual growth rate (CAGR) of approximately 8.64 per cent, reaching an estimated market size of 1,463 billion yuan by 2027.