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Leading Chinese auto parts suppliers continue to boom, Roland Berger says

By Chen Liubing | chinadaily.com.cn | Updated: 2018-10-31 10:20
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Company representatives showcase the Top 100 Chinese/Global suppliers certificates at a press conference in Beijing on Oct 30. [Photo provided to chinadaily.com.cn]

Eighty-seven companies were listed in the Top 100 Global Suppliers list for the second year, with around 86 percent of them witnessing revenue increase. Thanks to the rebound of commercial vehicle market last year, a total of 11 companies posted revenue growth of over 50 percent, with most of them supplying transmissions and diesel engines to commercial vehicles.

Sales revenue of 34 suppliers rose over 20 percent last year, with most of them suppliers for transmissions, electrified power systems, on-board information system, and body electronics.

According to Roland Berger, future development of supplier segments is deeply connected to the automobile industry, with electrification, autonomous driving and digitalization three major trends.

Segments such as on-board information system are seeing major opportunities, while certain traditional fuel system such as small-displacement engine will remain steady growth in short to medium term, according to Roland Berger analysis.

The consulting firm also said that as the global auto industry has entered into a new normal of slow growth, auto parts suppliers will face continuous but slow revenue growth at around 3 percent in a short term, with industrial average profit margin stable at 7 percent.

As the high growing tendency is disappearing, local suppliers should find new methods to confronting with intensified competition and avoiding low value-added products, Roland Berger added.

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