Automotive Interior And Exterior Parts Report

Current Development Status of the Automotive Interior and Exterior Parts Industry and Its Upstream and Downstream Linkages

1. Automotive Interior and Exterior Parts Industry(1) Basic SituationAutomotive interior and exterior parts are essential components of vehicles. Interior parts include dashboards, trim strips, door handles, air vents, and so on, while exterior parts include front and rear bumpers, radiator grilles, nameplates, logos, wheel covers, spoilers, anti-scratch strips, door handles, etc.From the perspective of technological development, replacing steel with plastic is the industry's trend. For exterior parts, using plastic instead of steel reduces vehicle weight and improves energy efficiency.

For interior parts, components like dashboards, seats, and headrests are made from elastomers and foamed plastics that can absorb impact and vibration energy, achieving safety, environmental, and comfort goals, reducing the physical impact during collisions, and enhancing vehicle safety.In terms of industry scale, in recent years, with the overall expansion of the automotive industry, domestic automotive interior and exterior parts companies have developed rapidly. Some stronger companies that went public earlier have achieved scale and technical advantages, becoming stable first-tier suppliers to automakers. However, overall, most companies in the industry are small in scale and the market concentration is low. In terms of regional distribution, domestic manufacturers of automotive interior and exterior parts are mainly located in East China, Central South China, and North China.In the future, the manufacturing process of automotive interior and exterior parts will not only gradually move toward green and environmentally friendly development but also exhibit two notable trends: first, the design of automotive interior and exterior parts will no longer focus on individual components but will integrate the overall interior and exterior system; platform strategy, systematic development, modular manufacturing, and integrated supply will gradually become the industry's development trend. Second, manufacturing processes will increasingly need to cater to personalized customization demands from customers, providing DIY-style personalized solutions.

(2) Current DevelopmentSimilar to the overall characteristics of the Chinese automotive industry, foreign-funded and joint venture companies hold a significant advantage in the automotive plastic interior and exterior parts industry. With higher technical levels and comprehensive quality control systems, their products outperform domestic products in quality and performance, mainly producing high-end automotive plastic interior and exterior parts. As domestic companies' technical and management levels continue to improve and products are upgraded, the market share of local automotive plastic interior and exterior parts companies will grow, gradually reshaping the existing competitive landscape.In terms of regional distribution, Chinese interior and exterior parts companies are mainly located in East China, Central South China, Northwest China, and North China. Among them, East China leads in both the number of companies and industrial scale, followed by Central South China, where manufacturers are mainly clustered around Dongfeng and GAC. In recent years, the Southwest region has also developed rapidly. In addition to the original Changan and Lifan automotive groups, Volkswagen, FAW, and Brilliance, among other automakers, have established footholds in the west, prompting many parts manufacturers to follow suit.Chinese automotive interior and exterior parts companies primarily conduct business with dominant vehicle manufacturers in the automotive industry. As automakers The gradual development of firewall modules will accelerate the development of automotive modular design. Third, lightweight materials. The use of lightweight materials can bring a very direct weight reduction effect. New lightweight materials such as natural fibers, synthetic fibers, fiber-reinforced plastics, lightweight alloys, and other types of composite materials are continuously being applied in automotive interior and exterior products. For example, modified PP (polypropylene) materials and non-woven materials have been widely used in interior and exterior parts; interior panels made from medium- and low-density PP materials or micro-foamed PP materials can reduce weight by 8-15% compared with traditional interior panels; PP materials filled with natural fibers can reduce weight by 10% compared with traditional mineral-filled PP.

3. The correlation between upstream and downstream industries in the automotive interior and exterior parts sector
The upstream industries of the automotive interior and exterior parts sector include the plastics industry and the metal raw materials industry such as copper, nickel, and chromium. The downstream industry is the automobile industry. The upstream and downstream industries are closely related to the automotive parts sector. Prices of upstream plastic raw materials and metal raw materials like copper, nickel, and chromium have a significant impact on the costs of automotive parts. Since 2006, the prices of copper, nickel, and chromium raw materials have fluctuated at high levels. After the financial crisis in 2008, prices dropped, and in recent years, influenced by global inflation, prices have gradually risen again.

The downstream customers of automotive interior and exterior parts are mainly passenger vehicle manufacturers. Factors such as market conditions, growth rate, and product prices in the downstream industry significantly affect the products of this sector, showing a high degree of correlation.

(1) Automotive interior and exterior parts are essential components of automobiles, and the prosperity of the automotive industry directly drives this sector. After nearly a decade of rapid growth, China's automobile manufacturing industry has returned to a state of stable growth. In the medium to long term, market consumption demand guided by national policies has a relatively short-term impact. Additionally, since the automotive industry significantly contributes to GDP growth, it has a huge driving effect on the economy. Under the premise of stable growth, the sustainable development of the social economy is the decisive factor for the continued growth of the automotive industry.

(2) Changes in the automotive market consumption structure also affect this sector. The growth rate of mid- to high-end vehicle brands will be higher than the overall growth rate of passenger vehicle manufacturers, directly driving the development of automotive interior and exterior parts companies associated with them. In a market where growth hotspots are concentrated in mid- to high-end brand models, manufacturers of such vehicles will experience relatively high growth, and their interior and exterior parts suppliers will also grow faster than the industry average.

At the same time, the increase in the market share of new energy vehicles directly promotes companies capable of providing interior and exterior parts for new energy vehicles. Against the backdrop of domestic macro policies on energy conservation and emission reduction, domestic and foreign automakers have begun to increase investment in new energy vehicles. The rise in market share of new energy vehicles will directly accelerate the development of related interior and exterior parts suppliers.