The relationship between automobile parts manufacturing industry and upstream and downstream Industries and the value-added Space of Industrial chain

From the upstream industry, the price of raw materials in the parts industry is mainly determined by the market prices of steel, oil, natural rubber and other commodities. In recent years, due to the frequent fluctuations in the prices of iron ore, oil, natural rubber and other resource commodities, the stability of the production and operation of the domestic auto parts industry has caused certain pressure.

From the downstream industry, benefiting from the development of the vehicle industry at home and abroad and the expansion of the consumer market, the domestic auto parts industry presents a good development trend. The downstream customers of domestic parts suppliers are mainly domestic and foreign vehicle manufacturers and their parts matching suppliers, and the customer concentration is high, so the parts and components enterprises are in a relatively weak position in the negotiation with downstream customers. However, for some parts suppliers with leading advantages in a certain segment of the market, their market position and technical advantages will help to enhance the market voice and bargaining power, so they have the ability to transfer costs downstream.

Value-added space and market development of industrial chain in automobile parts manufacturing Industry

The cost of auto parts manufacturing industry is limited by the upstream industry and its own management level, while the downstream auto manufacturers need accessories mainly from fixed suppliers, and the large buyers of auto parts are auto parts dealers and the main channel for auto parts sales. Profit space depends on the industry status of parts enterprises, competitive structure and their bargaining power with downstream industries. A huge "auto market" is entering a period of rapid growth, and the auto parts industry has a broad prospect.