South Korean media: China establishes leadership in automotive parts, multiple companies enter the top 100 worldwide!
On November 28, the South Korean media "Gukmin Daily" published an article stating that the global automotive parts industry is rapidly shifting its focus to Asia. As the industry transitions from internal combustion engines to electrification and software, Chinese automotive parts manufacturers have risen quickly, while South Korean automotive parts manufacturers have not shown significant growth momentum. According to analysis, this is because South Korean parts companies are highly dependent on Hyundai Motor, Kia, and others, and their responses to the transition to future vehicles are insufficient.
According to the recent "Analysis Report on the Top 100 Global Automotive Parts Companies," the total sales of the top 100 global automotive parts companies fell by 2.7% last year to $945.3 billion. Bosch from Germany has ranked first for the fifth consecutive year, followed by Denso from Japan, Magna from Canada, and ZF from Germany. Contemporary's Nantong Battery ranked fifth, and Hyundai Mobis from South Korea ranked sixth.
The position of the Asian market has significantly improved. Most companies that rose in ranking have a higher proportion of business in Asia. The sales revenue of Asian companies in the list has increased significantly, reaching 43.8%, exceeding other regions. Among companies that rose five positions or more, 62.7% had particularly high sales proportions in Asia. Researchers analyzed that this is due to "the steady increase in整车 production in Asia in recent years, which has driven the corresponding development of parts manufacturers whose main customers are these regional整车."
The rise of Chinese companies is particularly notable. The world's largest battery manufacturer, Contemporary Nantong Battery, as well as Yanfeng and Junsheng, have entered the top 100. The number of Chinese companies increased from 7 in 2020 to 14 last year, doubling, and their total sales revenue also grew more than twice, from $31.6 billion to $98.6 billion. An industry insider from South Korea explained, "China has expanded整车 production based on domestic demand and increased exports to Southeast Asia and Europe, driving the growth of parts manufacturers. 'Made in China 2025' strategy and subsidy policies have promoted self-sufficiency in the domestic parts ecosystem."
In contrast, the growth of South Korean parts manufacturers is relatively slow. Only 10 South Korean companies made it into the top 100 global automotive parts manufacturers. South Korea ranked fifth, following Japan (22 companies), the United States (18 companies), Germany (16 companies), and China (14 companies).
The number of South Korean companies increased from 6 in 2018 to 11 in 2022, but growth stagnated after that. Its share of total sales revenue also declined from 9.7% in 2022 to 8.2% last year.
South Korean automotive parts manufacturers have been criticized for lacking sufficient flexibility, failing to expand their global customer base beyond Hyundai Motor and Kia, and failing to respond timely to the transformation of future vehicles. An industry insider from South Korea pointed out, "We need to move away from the structure centered around internal combustion engines and shift to high-value-added businesses such as electric vehicle components."
Original: www.toutiao.com/article/1850021253149706/
Statement: This article represents the views of the author.