In recent years, with the support of major national projects and technology projects, China's auto parts industry has continued to strengthen technological research and innovation system construction through independent research and development, joint ventures and cooperation, and the introduction of technical talents, and gradually achieved breakthroughs in core technologies in some fields. The independent innovation system of Chinese brand auto parts has taken shape. Through years of development, most of the Chinese brand parts companies have strong manufacturing capabilities and certain market competitiveness. The enterprise system management and modular supply capabilities have been improved. Through differentiated multi-level development and concentric diversification promotion, The scale has expanded rapidly, and synergies have been formed between various sub-sectors. Domestic auto parts enterprises already have the industrialization capacity of passenger car and commercial vehicle parts systems, parts and subsystems, and achieve comprehensive product coverage. After years of development, China has formed six major auto parts industry clusters in the Northeast, Beijing-Tianjin-Hebei, Central, Southwest, Pearl River Delta and Yangtze River Delta. As the downward pressure on the automotive industry continues to increase, the overall development of the auto parts market is in good condition, showing a trend of medium and high speed development. Under the trend of globalization, domestic auto parts companies adopt mergers and reorganizations, overseas mergers and acquisitions, equity joint ventures, joint ventures and cooperation to accelerate their expansion and integration into the world's parts procurement system and go global.

In 2019, the pressure on China's auto industry will further increase, with negative growth in production and sales and the industry's main economic performance indicators. Up to now, the top three provinces in the number of enterprises in China's automobile industry chain are Guangdong, Jiangsu and Shandong, of which Guangdong ranks (44) with the number of about 67000 related enterprises. In 2019, automobile production and sales completed 25.721 million and 25.769 million vehicles, respectively, down 7.5 percent and 8.2 percent year-on-year, and the decline in production and sales was 4.2 and 5.4 percentage points larger than in 2018, respectively. Production and sales continue to rank first in the world. The pressure on vehicle production and sales was transmitted to the parts industry, and the growth of revenue and profit levels of parts manufacturers stagnated. At present, the global automobile industry is affected by the economic downturn, the new four trends of automobiles, and its own development cycle, and the growth rate of total production and sales has slowed down.

As of June 2019, the national car ownership in the first half of 2019 reached 0.25 billion and private cars reached 0.198 billion. As of June, the number of cars reached 0.25 billion, accounting for 74.58 of the total number of motor vehicles, of which 0.198 billion were private cars (small passenger cars and mini passenger cars registered in the name of individuals). With the continuous development of the new energy vehicle industry and the rapid growth of ownership, China's new energy auto parts industry ushered in a period of rapid development.

2019 to the poor performance of the automobile sector in the whole year, even if the vehicle valuation gradually rebounded, it is still at a historical low; the valuation of parts is better than the whole vehicle, 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 has narrowed. The rebound in 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 basically be divided into two types: electric motor central drive system and electric wheel drive system, including electronic controller, power converter, electric motor, mechanical transmission, wheels and other core components. The motor central drive system includes motors, reducers, differentials, mechanical transmissions and wheels; the power system is mainly used to provide power, including power, energy management systems and chargers; auxiliary systems include auxiliary power sources, power steering systems, Navigation systems, air conditioners, lighting and defrosting devices, wipers and radios.