China Auto Parts Market Research Report By End-User (OEM, Aftermarket) and By Distribution Channel (Offline, Online) - Forecast to 2035

China Auto Parts Market Overview:

As per MRFR analysis, the China Auto Parts Market Size was estimated at 105.14 (USD Billion) in 2023. The China Auto Parts Market Industry is expected to grow from 111.66 (USD Billion) in 2024 to 212.4 (USD Billion) by 2035. The China Auto Parts Market CAGR (growth rate) is expected to be around 6.02% during the forecast period (2025 - 2035).

Key China Auto Parts Market Trends Highlighted

The China Auto Parts Market is currently experiencing significant advancements driven by several key market drivers. A pivotal factor is the rapid growth of the automotive industry in China, spurred by increasing domestic production capacities and an expanding consumer base. The government's push for electric vehicles is reshaping the landscape, prompting auto parts manufacturers to focus on producing components that align with these new energy vehicles, thereby enhancing innovation within the sector. Additionally, the emphasis on quality and sustainability continues to rise, with manufacturers adopting eco-friendly materials and processes to meet stringent regulations set forth by the Chinese government.

In the sectors of digitalization and automation, there is still so much potential to be realized. The increased use of technology in vehicles is boosting the need for sophisticated automobile peripherals like sensors and net-linking tools. Also, China’s burgeoning e-commerce industry presents a new opportunity for the distribution of parts where manufacturers can directly sell to consumers and diversify their business ventures. With the changes in the global supply chain post-pandemic, sourcing auto parts locally is gaining importance, which can improve the competitiveness of the local manufacturers. Customers’ preferences have recently been changing towards more electric vehicles and hybrid vehicles.

This aligns with China’s ambition to become a leader in new energy vehicles, influencing auto parts companies to invest in Research to develop innovative solutions that cater to this trend. Furthermore, the focus on digitization, including aftermarket services powered by digital platforms, is gaining traction. Consequently, stakeholders in the China Auto Parts Market must remain agile, leveraging these trends to capture emerging opportunities while adapting to the evolving automotive landscape.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

China Auto Parts Market Drivers

Growing Electric Vehicle Adoption

The increase in electric vehicle (EV) adoption in China is a significant driver of growth in the China Auto Parts Market Industry. According to the Ministry of Industry and Information Technology (MIIT) of China, the production of new energy vehicles, which include electric and hybrid vehicles, reached 2.4 million units in 2021, representing a 200% increase from the previous year. This rapid growth in EV production generates increased demand for specialized auto parts designed for electric vehicles, such as batteries, charging systems, and electronic components.

Major companies such as BYD and Tesla are actively expanding their manufacturing capabilities in China, contributing to the increasing demand for EV-specific auto parts. Additionally, the Chinese government's policies promoting green transportation and providing incentives for EV production further bolster the growth of this segment within the auto parts market. This shift toward electric vehicles is expected to continue fueling market expansion in the years to come.

Rising Disposable Income and Consumer Demand

As the disposable income of Chinese consumers continues to rise, there is an increasing demand for automobiles and, consequently, auto parts. According to the National Bureau of Statistics of China, household disposable income has grown by approximately 10% annually over the past five years. This increase in disposable income encourages consumers to invest in personal vehicles, leading to a rise in vehicle ownership, which is projected to surpass 300 million vehicles by 2025.

Companies like SAIC Motor Corporation and FAW Group have reported increased production to meet the growing consumer demand. This growing vehicle ownership not only drives the sales of new vehicles but also generates a sustained demand for replacement parts and aftermarket products, thereby significantly impacting the growth of the China Auto Parts Market Industry.

Technological Advancements in Auto Parts Manufacturing

The advancement of technology in manufacturing processes is another significant driver of the China Auto Parts Market Industry. Recent developments in automation and precision engineering have enhanced production efficiency and reduced costs. Organizations such as the China Automotive Industry Association are promoting innovation through initiatives supporting the Research and Development (R) of advanced manufacturing technologies. Growth in areas like 3D printing and smart manufacturing allows auto parts suppliers to produce high-quality components with reduced lead times.

Statistics indicate that automation in manufacturing can lead to a 30% increase in production efficiency, reinforcing the competitive edge of Chinese auto parts manufacturers in both domestic and international markets. As these technological advancements continue to proliferate, they will indisputably fuel the growth of the China Auto Parts Market.

China Auto Parts Market Segment Insights:

Auto Parts Market End-User Insights

The End-User segment of the China Auto Parts Market plays a critical role in shaping the industry dynamics and is primarily divided into Original Equipment Manufacturer (OEM) and Aftermarket categories. OEMs are essential as they supply parts that are installed during the manufacturing process of vehicles, aligning with China's focus on expanding its automotive production capabilities amid growing domestic and international demand.

As automotive manufacturers increasingly emphasize quality and reliability, the OEM segment benefits from tighter relationships with vehicle makers, ensuring a consistent demand for high-quality components that meet stringent regulatory standards. In contrast, the Aftermarket segment caters to the needs of vehicle maintenance and repair, which is witnessing significant growth due to the increasing vehicle population and a shift towards extended vehicle life cycles. Consumer preferences for higher-quality aftermarket parts have surged, driven by the desire for cost-effective solutions and enhanced vehicle performance.

Moreover, the rapid expansion of e-commerce platforms in China has transformed the Aftermarket segment, facilitating easier access to various auto parts for consumers and workshops alike. Trends such as the growing demand for electric vehicles require specific auto parts, affecting both OEM and Aftermarket supply chains significantly. With the ongoing advancements in automotive technology, the Aftermarket segment is also diversifying, incorporating smart parts that enhance vehicle efficiency and connectivity.

The competitive landscape appears robust as local and international players strive to capture market share. A balanced approach to investing in both OEM and Aftermarket segments is essential, as they collectively support the nation's automotive ecosystem. Challenges such as regulatory compliance and supply chain disruptions necessitate innovative strategies to maintain operational effectiveness across the End-User segment. Overall, the End-User segmentation within the China Auto Parts Market offers ample opportunities for growth, driven by ongoing industrial advancements and a strong consumer base seeking reliable and efficient automotive solutions.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Auto Parts Market Distribution Channel Insights

The Distribution Channel segment of the China Auto Parts Market plays a critical role in ensuring that auto parts reach consumers efficiently and effectively. With the market expected to witness substantial growth, it is essential to recognize the significance of both offline and online channels in driving this demand. The offline distribution channel has historically dominated the market, with numerous brick-and-mortar stores and technical service outlets deeply embedded within local communities, offering customers the advantage of immediate access to essential parts.

Conversely, the online distribution channel is gaining momentum, fueled by increased internet penetration and evolving consumer preferences for convenient shopping options. The shift toward digital platforms allows consumers to compare prices and access a wider range of products, enhancing overall customer experience. In a rapidly growing market like China, innovations in logistics and distribution networks are likely to further support these channels. As urbanization continues to expand, both segments are expected to adapt and evolve, responding to changing market dynamics.

Together, the Distribution Channel segment is essential for meeting the demands of the burgeoning auto parts market in China, ensuring that customers have access to a reliable supply of high-quality products.

China Auto Parts Market Key Players and Competitive Insights:

The China Auto Parts Market has emerged as one of the most competitive sectors globally, primarily influenced by explosive growth in the automotive industry. The rapid expansion of domestic and international automobile manufacturers in China has significantly driven demand for high-quality auto parts. As a result, numerous players strive to capture market share, leading to intense competition characterized by the introduction of innovative technologies, enhanced quality standards, and accelerated supply chains.

The market is segmented across various categories, including electrical components, engine parts, transmission systems, and chassis components, each driven by distinct consumer preferences and regulatory requirements. This competitive landscape is shaped not only by established players but also by a host of emerging firms vying for attention based on cost, quality, and technological advancements, ensuring a dynamic environment for stakeholders.

SAIC Motor Corporation Limited stands out prominently in the China Auto Parts Market, leveraging its substantial manufacturing prowess and significant market presence. The company’s strength lies in its extensive network of production facilities and a strong emphasis on research and development, which enables innovative product offerings that meet the evolving demands of consumers. SAIC’s collaborative strategies with various partners facilitate the integration of advanced technologies within its operations, enhancing overall efficiency and product reliability. Furthermore, the company's commitment to quality assurance has fortified its reputation as a trusted supplier, providing a competitive edge. A focus on electric and autonomous vehicle components has aligned its strategies with the ongoing industry shift towards sustainable transportation solutions, thereby ensuring its relevance and leadership in the rapidly transforming auto parts sector.

FAW Group Corporation, another key player in the China Auto Parts Market, has established itself through a diverse portfolio of products and a significant market footprint. The company is closely associated with several vehicle brands and offers an extensive range of components, including engines, transmissions, and electronic systems. FAW’s strengths stem from its robust production capabilities and a history of strategic partnerships that have bolstered its competitive position through mergers and acquisitions. These collaborations provide access to advanced technologies and innovations, fostering product development in response to market demands.

The company is also actively investing in research initiatives aimed at electric vehicles, thereby addressing the shift in consumer preferences towards sustainable and efficient automotive solutions. FAW Group's well-entrenched presence in the domestic market has granted it a unique position to navigate challenges while capitalizing on emerging opportunities within the ever-evolving landscape of China's auto parts industry.

Key Companies in the China Auto Parts Market Include:

• SAIC Motor Corporation Limited


• FAW Group Corporation


• China Automotive Systems


• Geely Automobile Holdings Limited


• SAICGMWuling Automobile


• China National Chemical Corporation


• Nanjing Aoxin Group


• Xiangyang Automotive Parts Co., Ltd.


• BAIC Group


• Yuchai Group


• Yanfeng Automotive Interiors


• Changan Automobile Group


• Great Wall Motors


• Weichai Power


• Dongfeng Motor Corporation

China Auto Parts Market Industry Developments

The China Auto Parts Market is currently experiencing significant developments, particularly with industry giants like SAIC Motor Corporation Limited and FAW Group Corporation focusing on expanding their electric vehicle (EV) component production as demand surges. In October 2023, Geely Automobile Holdings Limited announced a partnership with China National Chemical Corporation to enhance sustainable material usage in automotive design, signaling a shift towards green manufacturing practices.

Notably, in August 2023, Changan Automobile Group completed the acquisition of Xiangyang Automotive Parts Co., Ltd., allowing for enhanced supply chain integration and production efficiency of automotive parts. Growth in the market valuation of companies like Great Wall Motors and Weichai Power is being driven by a rise in EV sales, further bolstered by favorable government policies aimed at promoting the EV industry. Additionally, Nanjing Aoxin Group and Yanfeng Automotive Interiors are investing extensively in Research and Development to innovate interior designs and smart technologies. The past two years have seen a marked increase in mergers and acquisitions, reflecting a trend towards consolidation and innovation within the market, ensuring competitive advantage amidst increasing global challenges.

Auto Parts Market Segmentation Insights

Auto Parts Market End-User Outlook

• OEM


• Aftermarket

Auto Parts Market Distribution Channel Outlook

• Offline


• Online

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	105.14(USD Billion)
MARKET SIZE 2024	111.66(USD Billion)
MARKET SIZE 2035	212.4(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.02% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	SAIC Motor Corporation Limited, FAW Group Corporation, China Automotive Systems, Geely Automobile Holdings Limited, SAICGMWuling Automobile, China National Chemical Corporation, Nanjing Aoxin Group, Xiangyang Automotive Parts Co., Ltd., BAIC Group, Yuchai Group, Yanfeng Automotive Interiors, Changan Automobile Group, Great Wall Motors, Weichai Power, Dongfeng Motor Corporation
SEGMENTS COVERED	End-User, Distribution Channel
KEY MARKET OPPORTUNITIES	Growing electric vehicle demand, Rising aftermarket services, Increasing vehicle production rates, Expanding automotive e-commerce platforms, Advancements in smart automotive technologies
KEY MARKET DYNAMICS	increasing vehicle ownership , rapid technological advancements , stringent government regulations , growing demand for electric vehicles , expansion of e-commerce platforms
COUNTRIES COVERED	China