Analysis on the market situation and development prospect of China's auto parts industry in 2020

1. The development environment of China's auto parts has improved, and the prosperity of the industry has risen

With the epidemic situation gradually under control, China's automobile sales are rising month by month, and the momentum of "golden nine silver ten" is even stronger. According to the data of China Automobile Association, in September this year, China's automobile sales reached 2.565 million units, with a month on month growth of 17.4% and a year-on-year growth of 12.8%. In October, China's automobile sales continued to grow, reaching 2.573 million units, with a month on month growth of 0.1% and a year-on-year growth of 12.5%.

2. China's auto parts development power is sufficient, and the follow-up situation is optimistic

In 2020, in order to boost the automobile consumption market, the state and various localities have successively introduced various kinds of automobile consumption stimulus policies, covering new car purchase subsidies, increasing license plate indicators, encouraging trade in, new energy vehicles to the countryside, etc. Zheshang Securities believes that the relevant policies to stimulate consumption will be further spread across the country, which is expected to drive the arrival of the "renewal wave" of domestic cars ahead of time.