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The Main Competitiveness Of China's Auto Parts Exports
Jul 10, 2018

Low labor costs. The low labor cost advantage is very important for the formation of the international competitiveness of the auto parts industry, and Japan is the most typical example. When Japan developed the automobile industry and could compete with Europe and the United States in the international market, it relied mainly on the low labor cost advantage. However, with the sharp increase in wages in Japan, the low-cost advantage quickly disappeared, and a large part of the automobile industry chain was transferred. To countries and regions with lower costs. In contrast, China's labor pool is sufficient and long-term supply exceeds demand, so it will continue to provide low-cost labor. At the same time, China not only has a low-cost labor force, but also has a large team of skilled technicians.

China's low labor costs make China's competitive advantage in labor-intensive parts and components very obvious. Bases, bumpers, wiring harnesses, glass, brake pads, clutches, heat sinks, mufflers, universal joints, etc., domestic prices are often about 20% lower than international prices. It can be said that the labor advantage is the biggest competitive advantage of China's current auto parts exports.

Where are the hot-selling regions of the auto parts industry? Where are the exporting countries mainly? Let us now take a look at the 2015 auto parts trade summary.

The auto parts hot market is mainly concentrated in North America, Australia and Western Europe. In addition, the Brazilian market is also quite active. If e-commerce wants to expand beyond North America, you can pay more attention to these market distributions.

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