With the rapid development of new energy vehicles and intelligent driving technologies, China’s auto parts industry is accelerating its transformation toward intelligence and lightweight solutions. According to data from the China Association of Automobile Manufacturers, the domestic auto parts market exceeded 5 trillion yuan in 2023, a year-on-year increase of 12%, with new energy-related components accounting for 35% of the total.

The industry is witnessing three major trends: first, electrification-driven demand, with surging needs for core components like battery management systems and motor controllers, prompting companies such as CATL and BYD Semiconductor to ramp up R&D investments; second, intelligent upgrades, where the market size of millimeter-wave radars and in-vehicle sensors is growing at an annual rate of over 25%; and third, lightweight innovation, with increasing adoption of new materials like aluminum alloys and carbon fiber.

Experts point out that as the “new four modernizations” (electrification, connectivity, intelligence, and sharing) progress, auto parts manufacturers must accelerate technological iteration to cope with intensifying market competition. It is projected that by 2025, the market size of intelligent connected vehicle parts will surpass 800 billion yuan.