Analysis of the Status Quo of the Global Auto Parts Industry in 2018 Japanese Companies' Global Competitive Strength Strengthens Domestic Firms' Competitiveness

The development of the auto parts industry is an important related industry for auto vehicle manufacturing. Through the summary of the operation and ranking of the global top 100 auto parts companies in 2017, Japan is a strong manufacturing country for autos and global auto parts in 2017. Among Top 100 companies, the number of Japanese companies and their operating revenues ranked first in the world, followed by the United States. With the strong driving force of the development of China's automobile manufacturing industry, in 2017 China has four companies among the top 100 in the world. In the future, with the promotion of China's manufacturing capacity, the company's dominant position will gradually emerge.

The global Top100 enterprise has a clear competitive pattern, with the United States, Japan and Germany leading the way

According to the “Analysis of Deep Market Research and Investment Prospects of China's Auto Parts Manufacturing Industry in 2018-2023” published by the Research Institute of Forward-looking Industry, statistics are made on the operating conditions of the top 100 auto parts manufacturers in the world in 2017. The results are as follows: In 2017, the top 100 global automotive parts companies in Japan, with their unique advantages in the automotive manufacturing industry, made the number of companies in the global top 100 in the auto parts manufacturing industry at 28, followed by the United States. It has reached 22, and the German automotive industry has also driven 16 companies into the global top 100 of auto parts manufacturing in 2017.

As a rising star in the development of the automobile manufacturing industry, China’s manufacturing capabilities are continuously increasing, but the scale effect of auto parts supply companies is relatively small, and it is relatively weak compared to the veteran auto parts production companies in other countries in the world. In 2017, among the top 100 auto parts manufacturers in the world, Japan, the United States, and Germany ranked the top three in terms of number of companies, accounting for 28%, 22%, and 16% of the total number of companies, far more than the 4% of the number of companies in China. .

Chart 1: The proportion of Top 100 companies in auto parts in 2017 (unit: %)

Source: Forward-looking Industry Research Institute

Japanese companies have the largest total income, and German companies have the strongest average ability

According to the 2016 global revenues of the top 100 companies, the total operating income of 28 auto parts makers in Japan reached 220.669 billion U.S. dollars, and the average profit of each company reached 7.9 billion U.S. dollars. Compared with Japan's German company's operating income of US$ 2015.6 billion, corporate profits reached US$ 12.6 billion, ranking first in the average revenue capacity of global auto parts manufacturing companies. The four companies in China achieved a total of $19.007 billion in operating income from auto parts. The average operating income of each company is less than $5 billion. It can be seen that the value-added products of high-end auto parts production companies represented by Germany are higher, and the competitive strength of auto parts enterprises in China at this stage is relatively weak, and there is much room for improvement.

Exhibit 2: Comparison and Analysis of Operating Income by Top 100 Auto Parts Enterprises by Country in 2017 (Unit: USD 100 million)

Source: Forward-looking Industry Research Institute

Judging from the changes in the position of the top 100 companies, with the gradual emergence of economic uncertainties and the promotion of the advantages of emerging auto parts manufacturers, the ranking of global Top 100 companies has changed slightly. In 2017, a total of 49 companies ranked in the ranking of top 100 auto parts companies, and 30 companies had a decreasing ranking. Among them, more than 10 companies ranked among the top 100 auto parts manufacturers for the first time in 2017.

Exhibit 3: Changes in rankings of global auto parts manufacturing Top 100 companies in 2017 (Unit: Home)

Source: Forward-looking Industry Research Institute

The world’s top 100 companies are ranked 4 in the domestic market, and their competitive strength needs to be enhanced.

In terms of corporate analysis in China alone, in 2017, there were 4 companies among the world's top 100 in the auto parts manufacturing industry. However, overall, except for Yanfeng Automotive Interior Systems, which ranked among the top 20, other companies ranked on the list. All three companies are ranked outside the 70. The leading global competitiveness of China's auto parts manufacturing companies will need to be improved. Judging from the overall revenue of the four companies, their total revenue in 2016 was US$19.007 billion, an increase of 14.14% over the previous year, and the increase in revenue was significant. And from the analysis of the revenue growth of each company itself, the growth rate of Dechang Electric's 2016 operating revenue reached a maximum of 17.23%.

Exhibit 4: Analysis of Global Top 100 Automotive Parts in China in 2017 (Unit: USD 100 million, %)

Source: Forward-looking Industry Research Institute

In the future, with the continuous increase in the overall competitiveness of China's auto manufacturing industry and the increasing emphasis placed on the manufacturing industry by the country, it will effectively promote the development of China's auto-related auto parts manufacturing industry, which will in turn increase the competitiveness of related companies. While enhancing the overall competitiveness of China's auto manufacturing industry, it effectively promotes the development of related upstream and downstream industrial chains.