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Under the background that the relevant ministries and commissions of the State continuously proposed the expansion of China's auto parts exports, China’s auto parts imports have doubled in value last year. In recent days, data show that in 2003 China imported a total of US$9.47 billion in spare parts, almost three times the US$3.38 billion in 2002. Of the imported components, China imported the largest amounts from Germany and Japan, which were US$3.13 billion and US$2.92 billion respectively, while the US’s exports to China were only US$268 million, ranking behind France, Brazil, and Canada.
Last year, China's auto parts sales totaled 38.9 billion U.S. dollars. Compared with the figure of 29.5 billion U.S. dollars in 2002, the increase in imports of parts and components was clearly larger than the increase in overall sales. Among the imported parts and components in 2003, the engine accounted for a large proportion, and the import amount has doubled from US$1.07 billion in 2002 to US$2.15 billion. Imported transmission components reached US$863 million, and in 2002 it was US$307 million. The import of braking components was 583 million U.S. dollars, and in 2002 it was 239 million U.S. dollars, both multiplied.
In 2003, the sales of light vehicles in China grew rapidly. The sales volume of cars has exceeded 2 million, and 36 new models have appeared throughout the year. However, foreign car companies believe that it is difficult for China's parts suppliers to meet the requirements of Western and Japanese companies. This is the main reason for China to increase imports of spare parts.
The GM joint venture in China last year had 30% to 40% of parts imported from North America. Ford purchased 50% of parts for the Mondeo and Carnival models in 2003. Since the prototypes of both models come from the European market, parts purchased by Ford are mainly from Europe. The U.S. industry is somewhat disappointed that this “big cake†that has not received more Chinese parts imports. As for the relatively small amount of imports, GM believes that their degree of localization in China has improved rapidly. GM and Ford have recently encouraged suppliers to build factories in China to reduce procurement costs.
Analysts predict that China's spare parts imports will continue to increase in the coming years. On the one hand, the high-end automobile projects of multinational automobile companies in China will be successively launched. This year, General Motors will assemble Cadillac in China, and parts purchased from the United States will certainly rise. The 3 Series and 5 Series BMW sedan assembled by BMW Brilliance will continue to increase the total number of parts imported from Europe. In addition, according to the agreement, in mid-2005 Daimler-Chrysler will start assembling Mercedes-Benz C and Mercedes-Benz E-Class sedans in China. Initially, Dai-Ke will certainly import a large number of parts from Germany. In addition, with the reduction of China's auto import tariffs and the cancellation of quotas, China’s imports will also increase further.