There is a natural fit between automobiles and overseas exports. The export of automobile parts has a long history and is showing a rising trend. In recent years, the epidemic and changes in trade policies have affected the supply of domestic and overseas auto parts markets.

According to data from the General Administration of Customs, from January to October 2022, the export value of auto parts was US$76.59 billion, a year-on-year increase of 11.7%, accounting for 58.9% of the total exports of automotive goods.

Among the main export categories of auto parts, except for the slight decrease in engine export value, the other three major categories of auto parts continued to grow.

1. What do auto parts include?

Auto parts usually refer to all parts and components except the automobile frame. The frame can also be regarded as a component, but it is not the same concept as spare parts.

·Types of auto parts

75% of a car is produced and processed by the auto parts industry. It is generally composed of four basic parts: engine, chassis, body and electrical equipment, including transmission system, braking system, steering system, engine accessories, The number of automobile instruments, fuel system accessories, driving accessories, body parts, cooling system and other accessories can reach tens of thousands.

2. What are the foreign trade models for auto parts?

After years of development, domestic foreign trade of auto parts has developed many models. Through sorting out public information, there are mainly four models:

·Traditional trade model

That is, the buyer issues an order to the manufacturer, the manufacturer produces and packages as required, organizes containers and freight, and the delivery is successful.

This method is relatively simple and has low risk. The manufacturer does not need to store goods, which reduces inventory pressure. However, the product delivery cycle is long, the manufacturer’s profit is not high, and the order volume is unstable.

·Direct sales model

That is, domestic manufacturers or distributors go to a certain country to cooperate with local companies in corporate operations, establish auto parts sales warehouses and stores, independently purchase Chinese auto parts products, ship them to the country, and sell them directly to local auto parts dealers or auto parts dealers. In the hands of the repair shop.

The profit margin of this method is relatively high, but it must be supported by local political and business background resources, otherwise the risk will be greater and the return of funds will be easily restricted.

·Front warehouse mode

Organize a group of auto parts manufacturing companies whose products can complement each other and establish a partnership platform company. Establish a front-end warehouse in a country or region with a radiation effect, or a domestic border trade port city, and attract buyers by organizing foreign trade matchmaking meetings.

This method provides fast delivery, timely response, and scale effect, but it tests the platform’s operational capabilities, information collection capabilities, and product organization and combination capabilities.

·Cross-border e-commerce model

Cross-border transactions are mainly conducted through third-party platforms such as Amazon, eBay, and Shopee.

On the one hand, this model relies on the channels and promotion of third-party platforms; on the other hand, it also tests its own product structure and operational capabilities. At the same time, as the policies of various countries/platforms tighten, the threshold for cross-border sellers to enter has become higher, and logistics costs have increased. .

3. In the new energy era, where will the foreign trade of auto parts go?

In recent years, the new energy vehicle revolution has emerged globally, and the parts industry has also been affected accordingly.

So what changes have occurred in parts and components foreign trade companies and business models?

Will the explosive growth of domestic new energy vehicles drive the overtaking of new energy components?

At present, although the development of new energy vehicles is in full swing, in the existing market, serving existing oil vehicle customers is still the core of auto parts manufacturers. According to the latest data from the Ministry of Public Security of my country and related research by Bloomberg NEF, China is currently the country with the highest number of new energy vehicles in the world, and the number of new energy vehicles in 2022 will only account for 4.10% of the total number of vehicles.

However, Chunjiang Plumbing Duck knows that some manufacturers have already begun to lay out new energy automobile parts. According to Yi Peng, head of eBay China’s automotive category, eBay has begun to see more business related to new energy vehicle accessories, especially charging piles that are essential for electric vehicles.

The upcoming “combustion ban” plans in various countries will be of great benefit to the new energy vehicle market.

The electric era’s disruptive impact on the market will happen sooner or later, and what will follow will be a “big shakeup” in the auto parts market.

If new energy vehicles occupy the market, the source of kinetic energy will be the biggest changing factor. For example, household charging equipment such as charging piles and charging guns will also have a large market. For traditional fuel vehicles, the engine and transmission are extremely important. After electric vehicles become popular, these two main components will gradually be replaced by motors and batteries. In addition, there is also a lot of room for development of peripheral products for new energy vehicles.

In addition, car modification will be an obvious opportunity for foreign trade. Unlike China, which has clear regulations on modifications, overseas markets have loose restrictions, car owners have strong demand for modifications, and there are a variety of ways to play. The craze for DIY modification of old cars may be an innovative solution provided by the market. In some overseas countries, the phenomenon of private car owners purchasing and replacing car parts on their own has increased, and a number of popular bloggers who DIY car modifications have even emerged on platforms such as YouTube and TikTok.