Source: The Beijing News

In the first eight months, 51,000 new enterprises related to auto parts were added in China, representing a year-on-year growth of 30%

The Beijing News Kejing Finance reports that although the domestic vehicle market has faced significant downward pressure this year, the number of auto parts related enterprises has still maintained growth.

According to data from Qichacha, there are currently 360,000 auto parts related enterprises in China. In 2019, the number of newly registered enterprises reached 61,000. In the first eight months of this year, a total of 51,000 new enterprises were added, representing a year-on-year growth of 32.1%. Since April, the average monthly registration volume has exceeded 8,200. In terms of regional distribution, Jiangsu Province ranks first with 54,000 enterprises, followed by Zhejiang and Shandong with 38,000 and 32,000 respectively.

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In 2019, 61,000 new enterprises were registered

Automobile parts are the foundation of the development of the automotive industry and a prerequisite for its sustained and steady growth. With the advancement of economic globalization and market integration, the market position of the automotive parts industry in the automotive industrial system has gradually been enhanced. According to data from Qichacha, as of September 2020, there were a total of 360,000 operating and existing enterprises related to auto parts across the country.

According to data from Qichacha, the number of registered enterprises related to auto parts across the country has been increasing year by year over the past decade. From 2010 to 2013, the average annual registered number of related enterprises was 14,000. Since 2014, the industry has entered an upward channel. In 2019, the registered number of related enterprises reached 61,000, an increase of 15% year-on-year, which was 4.6 times the data from ten years ago.

Since the beginning of this year, the impact of the global pandemic has had a certain effect on the automotive parts industry. According to data from Qichacha, the number of related enterprise registrations hit rock bottom in February, with only 1,400, a 57% decrease compared to the previous month. With the effective control of the domestic epidemic, the auto market has begun to gradually recover, and the market for auto parts enterprises has also shown a warming trend. In March, the number of related enterprise registrations reached 7,000, a 401% increase compared to the previous month. From April to August, the number of related enterprise registrations averaged over 8,200 per month. Overall, a total of 51,000 new enterprises were added in the first eight months, representing a year-on-year growth of 32.1%.

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Jiangsu, Zhejiang and Shandong ranked the top three

In terms of geographical distribution, data from Qichacha shows that Jiangsu Province has the largest number of auto parts-related enterprises in the country, reaching 54,000, accounting for 15.2% of the national total. Zhejiang Province and Shandong Province ranked second and third respectively with 38,000 and 32,000.

According to data from Qichacha, in terms of registered capital, nearly 70% of national auto parts-related enterprises have a registered capital of less than 5 million yuan, among which 33% have a registered capital of less than 1 million yuan and 34% have a registered capital between 1 million and 5 million yuan. Those with a registered capital of over 10 million yuan account for 20%.