While expanding production scale, it gradually reduces the self-made rate of auto parts and adopts a global procurement strategy for parts. At the same time, in order to obtain greater profits, international parts suppliers have reduced or even stopped the production of some of their products that do not have a competitive advantage, and instead purchase products with comparative advantages around the world.

② System supporting and modular supply are gradually emerging

Increasingly fierce market competition has forced vehicle manufacturers to shift from purchasing individual components to purchasing entire systems. This change not only helps vehicle manufacturers make full use of the professional advantages of parts and components companies, but also simplifies product supporting links and shortens the new product development cycle. As system suppliers become increasingly involved in the R&D, design, and production processes of new vehicle manufacturers' products, their technical and economic strength has gradually grown. System support has given rise to the modular supply of parts companies. In modular supply, parts companies take on the development of more new products and new technologies. Vehicle manufacturers increasingly rely on parts companies for products and technologies, and parts companies play an increasingly important role in the automotive industry.

③The speed of industrial transfer is accelerating

Labor costs in developed countries such as Europe, the United States, and Japan are relatively high, resulting in the lack of cost advantages for auto parts products produced in these countries. In response to market competition, large auto parts companies in the above-mentioned countries have accelerated their industrial transfer. They have not only transferred large-scale production and manufacturing links to low-cost countries and regions, but also gradually extended the scope of transfer to research and development, design, procurement, sales and after-sales service links. The scale of transfer is getting larger and larger, and the level is getting higher and higher. China, India and other countries have become the main destinations for the relocation of the global auto parts industry.

④The market share of advantageous enterprises is gradually becoming concentrated.

In the context of increasingly detailed professional division of labor, vehicle manufacturers have transformed from traditional vertical operations and the pursuit of large and comprehensive production models to streamlined organizations and specialized production models focused on developing complete vehicle projects. The industry has formed a multi-level pyramid structure of first-tier parts suppliers, second-tier parts suppliers, and third-tier parts suppliers. Generally speaking, the lower the tier, the greater the number of suppliers at that tier. The current large-scale conglomeration of parts manufacturing companies has gradually led to corresponding changes in the structure between vehicle manufacturers and first-tier parts suppliers, and the number of first-tier parts suppliers has continued to decrease. As the groupization of parts companies continues to deepen, the automotive industry has increasingly formed a structure in which a few parts companies monopolize the production of certain parts and provide them to multiple vehicle manufacturers.