China's automobile production and sales continue to rank first in the world, and the booming automobile market has driven the rapid development of China's automobile parts industry. According to the 2018 White Paper on China's Automotive Parts Industry released by the New Frontier Industry Research Center, the proportion of China's automotive parts manufacturing industry output value to the total automotive industry output value has remained at around 40% since 2012. In 2017, the sales revenue of China's automotive parts industry was 3739.2 billion yuan, a year-on-year increase of 8.20%. The development speed of China's automotive parts market tends to be stable.
The total number of automobile parts enterprises in China exceeds 10000, with less than 6000 enterprises above designated size, of which private enterprises account for a large proportion, accounting for 49.25%. The majority of private automotive parts enterprises in China have sales revenues below 100 million yuan, resulting in the automotive parts industry being too dispersed and lacking market competitiveness. The automobile market in our country is booming, but the manufacturing technology level of automobile parts is relatively low. We are optimistic about the huge development prospects, and advanced foreign enterprises are rapidly entering the domestic market layout.
At present, most of the internationally renowned automotive parts enterprises have entered the domestic market, and foreign-funded enterprises account for 22.20% of China's automotive parts enterprises. Foreign funded enterprises have strong financial and technological capabilities, with a relatively small number of enterprises but a large market share of over 70%. In the fields of core components such as automotive electronics and engines, foreign market share is as high as over 90%. Local enterprises in our country have a serious lack of competitiveness in the high-end market of automotive parts.
The automotive industry is an important pillar industry of the national economy, and the automotive parts industry is the prerequisite and foundation for the sustained and steady development of the automotive industry. The rapid development of China's automotive market and the entry of advanced foreign enterprises have all driven the steady development of China's local automotive parts technology. However, China's automotive parts industry is still in its growth stage and there is still a significant gap compared to international advanced technology. There is still a lot of room for improvement in the future.
With the continuous improvement of the industrial chain, China has become an important part of the global automotive supply system, occupying an increasingly important position in the global automotive supporting market and becoming one of the world's most important countries for manufacturing and exporting automotive parts. China's automotive parts are mainly exported to countries and regions such as the United States, Japan, and the European Union, and gradually expanding into emerging markets such as Latin America.
From 2011 to 2014, China's automobile parts exports showed a trend of increasing year by year. Affected by the overall global economic downturn and trade barriers, China's automotive parts market experienced negative growth in 2015. In 2016, there were signs of recovery, with exports increasing by 4.29% year-on-year and a cumulative export value of 64.573 billion US dollars. In 2017, the export value slightly decreased by 1.23% again, with a cumulative export amount of 63.778 billion US dollars. The export of automotive parts is greatly influenced by the international political and economic environment.
Industry analysts from Xinsijie stated that China's automotive parts industry started relatively late and has a slower development speed compared to the entire vehicle market. The booming domestic automobile market has attracted many foreign-funded enterprises to enter and layout. Compared with foreign-funded enterprises, domestic enterprises in China have weaker technological and innovation capabilities, and their competitiveness in the core component field is seriously insufficient. There is still huge room for improvement in the future. With the rapid development of the automotive market, China's automotive parts industry chain has gradually improved and has become one of the world's important automotive parts production countries. However, the export market is relatively unstable, and the industry needs to control risks in advance.
