China's Auto Parts Exports Grow Slowly; Electrification Drives New "Integrated Overseas Expansion" Strategy

In a speech titled "Global Trade Landscape and New Trends in China's Automotive Parts Exports," Cui Dongshu, Secretary-General of the China Passenger Car Association, pointed out that China’s automotive parts exports have long faced structural challenges. In 2025, export value is projected to reach approximately USD 95.8 billion, representing only a 2% year-on-year increase, with the scale remaining stagnant for years within the range of USD 80–90 billion, reflecting weak growth momentum. By contrast, vehicle exports surged from 1 million units in 2020 to an estimated 8 million units in 2025—an eightfold increase over five years. Cui analyzed that the slow growth in parts exports stems primarily from prolonged reliance on the after-sales markets in Europe and North America, where exported products are largely low-value-added components supplied to international automakers with limited development capabilities. This has constrained breakthroughs in export structure. Currently, traditional export models face intense competition, resulting in unstable profits and orders for companies, as well as weak pricing power. As electrification and intelligent connectivity reshape the automotive industry’s value chain, China has already established global competitiveness in new energy vehicles (NEVs) and smart connected technologies, creating new growth opportunities for related components. Chinese auto parts suppliers are transitioning from merely supplying components to international automakers toward a new phase of exporting alongside complete vehicles. Their core competitive advantage must evolve from cost-driven alone to a comprehensive capability integrating both technology and cost efficiency. Cui proposed three strategic pathways for overseas expansion: First, leverage NEV exports to drive the concurrent export of core “three-electric” components—batteries, motors, and electronic controls. Second, follow domestic OEMs like SAIC, Great Wall, and BYD in establishing overseas manufacturing facilities, thereby promoting localized supply chains for upstream and downstream partners. Third, adopt technology licensing models—such as CATL’s technology transfers to Ford and Tesla—to shift from “selling products” to “exporting standards.” Cui believes emerging markets in the Global South represent a blue ocean for future growth. With high-quality, cost-effective products, China can support these regions’ transitions toward electrification. He recommends companies adopt a “surrounding cities from the countryside” strategy to expand into emerging markets and diversify their customer base. Looking ahead to the next 5–10 years, Chinese auto parts firms are expected to establish a global footprint and give rise to a cohort of world-class multinational enterprises. Cui urged the industry to accelerate mindset shifts and focus on six strategic priorities—including technological innovation and market diversification—to propel globalization into a new era.