In recent years, with the support of major projects and technical special projects, China's auto parts industry has continued to strengthen the construction of technological research and innovation systems through enterprise independent research and development, joint venture cooperation and the introduction of technical talents, and gradually achieved breakthroughs in core technologies in some fields. An independent innovation system for Chinese brand auto parts has taken shape. Through years of development, most of China's brand parts enterprises have strong manufacturing capacity and a certain market competitiveness, enterprise system management and modular supply ability to improve, through differentiated multi-level development, as well as concentric diversification to promote, to achieve rapid scale expansion, the formation of synergies between various segments of the industry.

Domestic auto parts enterprises have already possessed the industrialization capability of parts systems, parts and subsystems of passenger cars and commercial vehicles, and achieved comprehensive coverage of products. After years of development, China has formed six auto parts industrial clusters in Northeast, Beijing-Tianjin-Hebei, Central, Southwest, Pearl River Delta and Yangtze River Delta. In the case of downward pressure on the automotive industry continues to increase, the overall development of the auto parts market is good, showing a medium-high speed development trend. Under the trend of globalization, domestic auto parts enterprises use mergers and acquisitions, overseas mergers and acquisitions, equity joint ventures, joint venture cooperation and other ways to accelerate the expansion and integration into the world parts procurement system and go to the world.

In 2019, the pressure faced by China's automobile industry has further increased, and the production and sales volume and the main economic benefit indicators of the industry have shown negative growth. Up to now, the top three provinces in the number of enterprises in China's automobile industry chain are Guangdong, Jiangsu and Shandong, among which Guangdong ranks first with about 67,000 related enterprises (44). In 2019, automobile production and sales completed 25.721 million and 25.769 million, respectively, down 7.5% and 8.2% year-on-year, and the decline in production and sales increased by 4.2 and 5.4 percentage points compared with 2018, respectively. Production and sales continue to rank first in the world. The pressure of vehicle production and sales is transmitted to the parts industry, and the growth of the revenue and profit level of the parts manufacturers has stagnated. At present, the global automobile industry is affected by the economic downturn, the trend of the new four modernizations of automobiles, and its own development cycle, and the growth rate of total production and sales has slowed down.

As of June 2019, the number of cars in the country in the first half of 2019 reached 250 million, and the number of private cars reached 198 million. As of June, the number of vehicles in the country reached 250 million, accounting for 74.58% of the total number of motor vehicles, of which private cars (small passenger vehicles and micro-passenger vehicles registered in the name of individuals) reached 198 million. With the continuous development of the new energy automobile industry and the rapid growth of the number of vehicles, China's new energy automobile parts industry has ushered in a period of rapid development.

The performance of the automotive sector in 2019 is poor, and even if the valuation of the vehicle gradually recovers, it is still at a historical low; The valuation of parts is better than that of complete vehicles, but it is still hovering in the historical bottom range; From the perspective of industry profitability, affected by the downturn in the automobile market, the profit margin of the automobile manufacturing industry continued to decline, but the range was narrowed. The recovery of foreign investment allocation shows good expectations for China's auto market.

Electric vehicle parts mainly include electric drive system, power supply system and auxiliary system. Among them, the electric drive system can be basically divided into two categories of motor central drive system and electric wheel drive system, including electronic controllers, power converters, motors, mechanical transmission devices, wheels and other core components. The central drive system of the motor comprises a motor, a reducer, a differential, a mechanical transmission device and a wheel; The power supply system is mainly used to provide power supply, including power supply, energy management system and charger; Auxiliary systems include auxiliary power sources, power steering systems, navigation systems, air conditioners, lighting and defrosting devices, wipers and radios.