Trade risk tips:

At present, the income scale ratio of my country's automobile and parts industry is about 1:1, and there is still a gap with the ratio of 1:1.7 in the automobile power. The parts industry is large but not strong, and there are many shortcomings and breakpoints in the upstream and downstream of the industrial chain. The essence of competition in the global automobile industry is the competition of supporting systems, that is, the competition of industrial chain and value chain. Therefore, optimizing the upstream and downstream layout of the industry, accelerating the integration and innovation of the supply chain, building an independent, safe and controllable industrial chain, and enhancing my country's position in the global industrial chain are the endogenous driving force and realistic requirements for realizing the high-quality development of automobile exports.
Parts exports are generally stable
1. In 2020, China's exports of parts and components fell more than the whole vehicle
Since 2015, my country's export of auto parts (including key auto parts, accessories, glass, tires, the same below) has not fluctuated much. With the exception of exports exceeding $60 billion in 2018, all other years fluctuated around $55 billion, similar to the annual export trend of complete vehicles. In 2020, China's total exports of automotive products exceeded $71 billion billion, with parts accounting for 78.0 percent. Among them, the export value of complete vehicles was 15.735 billion US dollars, down 3.6 percent year-on-year; the export value of spare parts was 55.397 billion US dollars, down 5.9 percent year-on-year, which was higher than that of complete vehicles. Compared with 2019, the monthly difference in parts exports in 2020 is obvious. Affected by the epidemic, exports fell to the bottom in February, but in March it recovered to the same level as the previous year; due to weak demand in overseas markets, the following four months continued to decline, to August stabilized and rebounded, and exports continued to run at a high level from September to December. Compared with the export trend of the whole vehicle, the parts and components rebounded to the level of the same period last year one month earlier than the whole vehicle, which shows that the parts and components are more sensitive to the market.
2. The export of auto parts is mainly based on key parts and accessories.
In 2020, China's exports of key automotive parts were $23.021 billion, down 4.7 per cent or 41.6 per cent year-on-year; exports of zero accessories were $19.654 billion, down 3.9 per cent or 35.5 per cent; exports of automotive glass were $1.087 billion per cent, down 5.2 per cent year-on-year; and exports of automotive tires were $11.635 billion per cent, down 11.2 per cent year-on-year. Automotive glass is mainly exported to the United States, Japan, Germany, South Korea and other traditional automobile manufacturing countries. The main export markets of automobile tires are the United States, Mexico, Saudi Arabia, and the United Kingdom.
Specifically, the main categories of key parts exports are frames and brake systems, with exports of US $5.041 billion and US $4.943 billion respectively, mainly exported to the United States, Japan, Mexico, and Germany. In terms of zero accessories, body panels and wheels are the main export categories in 2020, with exports of US $6.435 billion and US $4.865 billion respectively, of which wheels are mainly exported to the United States, Japan, Mexico and Thailand.
3. Export markets are concentrated in Asia, North America and Europe
Asia (this article refers to other parts of Asia excluding China, the same below), North America and Europe are the main export markets of China's parts. In 2020, the largest market for China's key parts exports will be Asia, with exports of $7.494 billion, or 32.6 per cent, followed by North America, with exports of $6.076 billion, or 26.4 per cent, and exports to Europe of $5.902 billion, or 25.6 per cent. In terms of zero annex, exports to Asia accounted for 42.9 per cent; exports to North America amounted to $5.065 billion, or 25.8 per cent; and exports to Europe amounted to $3.371 billion, or 17.2 per cent.
Although there are trade frictions between China and the United States, China's exports of parts and components to the United States have declined in 2020, but whether it is key parts or zero accessories, the United States is still China's largest exporter, these two exports to the United States accounted for about 24%, the total export of more than $10 billion. Among them, the main export products of key parts are braking systems, suspension systems and steering systems, and the main export products of zero accessories are aluminum alloy wheels, car bodies and electrical lighting devices. Other countries that export more key parts and accessories include Japan, South Korea and Mexico.
4.RCEP agreement regional automobile industry chain export correlation.
In 2020, in the RCEP Agreement (Regional Comprehensive Economic Partnership Agreement) region, Japan, South Korea, and Thailand are the top three countries in my country's key auto parts and zero accessories exports. Export products to Japan are mainly aluminum alloy wheels, car bodies, ignition wiring groups, braking systems, airbags, etc.; export products to South Korea are mainly ignition wiring groups, car bodies, steering systems, airbags, etc.; mainly export car bodies to Thailand, Aluminum alloy wheels, steering systems, braking systems, etc.
(China Auto News Network)