Latest Research: China is Surpassing German Automotive Parts Suppliers
According to the Munich "Mercury" newspaper: In global comparisons, German automotive parts suppliers are losing their competitive edge. A new study shows that China will surpass Germany in the coming years and occupy a higher market share.
Electric vehicles, autonomous driving, trade disputes, and declining sales - automakers are currently facing multiple challenges. In 2024, global car production fell by 2.2%, and Europe by 5%, returning to pre-pandemic levels. The average capacity utilization of German car factories was only 68%, far below the 85% efficiency line.
This trend has also affected the parts industry. According to the latest "Global Top 100 Automotive Parts Suppliers Study" released by the global consulting firm Berylls by AlixPartners: In 2024, the total revenue of the top 100 global parts suppliers decreased by 4.6% compared to last year, reaching 1.085 trillion euros. Among the 34 European suppliers entering the top 100 list, 27 saw a decline in revenue. Although profit margins remained roughly stable, experts believe this is mainly due to previous cost-cutting and restructuring plans implemented.
German suppliers lose their advantage
The impact on German suppliers has been particularly severe: despite Germany's GDP growing by 19% since 2019, analysis shows that the cumulative revenue growth of German suppliers was only 8%. This gap reflects that the long-standing leading position of German parts suppliers in the global market is gradually being eroded. Japan's situation is even more severe: between 2019 and 2024, Japan's GDP fell by 20%, and the revenue share of its top 100 suppliers dropped by 7%.
Four Chinese companies enter the global top 100 suppliers for the first time
The performance of American suppliers is also not satisfactory; the number of companies that have left the top 100 list also illustrates the problem: between 2019 and 2024, Japan, the United States, and Germany lost the most companies on the list - Japan lost 5, and the United States and Germany each lost 3. In stark contrast, Chinese suppliers are making a strong rise. In 2024 alone, four Chinese companies entered the global top 100 suppliers list:
Huawei: mainly active in the automotive field in connectivity technology and software solutions
Huizhou Desay: provides cockpit electronics and infotainment systems
Ningbo Tuopu: focuses on chassis and noise-vibration-harshness control components
NBHX (Ningbo Huaxiang): a group enterprise that produces interior decoration and trim parts
Seven Chinese companies among the top 10 revenue enterprises
According to the study, these new companies have significantly driven the development of the Chinese parts industry. Between 2019 and 2024, the revenue growth of the top 100 Chinese suppliers reached as high as 139%, far exceeding the 27% increase in domestic GDP during the same period. In the top 10 revenue enterprises of the global parts industry in 2024, seven were from China, two from Germany (Schaeffler and Thyssenkrupp automotive business), and one from India (Motherson Group).
Currently, Japan (20.8%) and Germany (20.4%) still lead in the global market share. However, the trend is quite clear: compared to 2020, Japan's market share has declined by 6.1%, Germany by 1.8%, while China has increased by 2.3%. Experts at Berylls predict that within the next five to eight years, China will surpass Germany and Japan in market share.
Diversification transition: parts companies seek new growth points
Facing the overall weak market, an increasing number of suppliers are seeking new sources of income outside their core businesses. In 2024, the proportion of income from non-automotive sectors has risen to 17.5%. They are focusing on investments in heating and air conditioning technology, industrial automation, medical technology, and sustainable building components. This expansion is usually achieved through mergers and acquisitions of other companies, aiming to reduce dependence on the volatile automotive market.
Flexibility beats size: the key to success
2025 will not be easier for parts suppliers, and there will be no fundamental improvement in the macroeconomic environment. Geopolitical tensions, rising protectionism, higher financing costs, and increasingly fierce global competition in technological leadership and talent are reshaping the industry landscape. Experts point out that in order to survive, suppliers must proactively adjust their strategies, optimize product portfolios, and expand regional layouts.
Today, in the automotive supply chain, a company's size or traditional status is no longer the key to success. Instead, flexibility, technological relevance, and the ability to make decisive decisions in uncertain times are the determining factors for success.
Original article: https://www.toutiao.com/article/1836302095029257/
Statement: This article represents the views of the author.