The newly issued "Automotive Industry Development Policy" in June has placed a significant emphasis on the development of spare parts and related industries, leading to claims that it "stands at the global automotive industry's height," highlighting China's zero starting point in the development direction of its auto parts sector. This policy has sparked excitement among auto parts manufacturers and distributors in Henan, who see it as a major opportunity.
In recent interviews, many industry insiders expressed their enthusiasm, with some even comparing the current moment to the arrival of spring. Liu Xiaoming, Secretary General of the Provincial Automobile Industry Association, noted that while Henan’s auto parts production and distribution hold a solid position nationally, the overall performance of the auto industry in the province still lags behind. He pointed out that one of the main reasons is the weak foundation of spare parts. Without high-quality components, it's impossible to produce high-performance vehicles.
An experienced industry insider added that although the new policy doesn’t explicitly mention “localization†or “domestication,†it aligns with global trends by aiming to meet both domestic and international market demands and integrate into the global auto parts supply chain. This approach is more open and comprehensive than previous strategies.
The policy also encourages the separation of parts from整车 (whole vehicles), which many manufacturers see as a promising future. One CEO shared that this change offers a rare opportunity for growth, emphasizing that without being part of a large automaker, they can compete more effectively through full marketization and competition.
Experts highlighted two key advantages for Henan: existing successful parts companies and support from social forces like the military industry, universities, and research institutes—particularly in cities such as Luoyang, Jiaozuo, and Nanyang. The policy also benefits private enterprises by encouraging them to enter the auto parts sector.
Henan’s auto parts distribution holds a crucial national position due to its strategic location. The concept of “corporate alliances†has become a hot topic, with many companies already exploring new models such as chain operations. These alliances help consolidate resources, reduce costs, and increase competitiveness.
However, challenges remain, including fragmented competition, scattered resources, and limited ability to withstand market risks. Experts suggest that forming strong alliances and adopting logistics and chain operations are essential steps toward growth. As the policy emphasizes cooperation in R&D, production, and sales, it aims to optimize resource allocation, reduce costs, and achieve economies of scale.
Companies that have embraced chain operations report advantages in service quality, pricing, and efficiency. By integrating regional markets, they can create a larger, more stable user base and benefit from economies of scale that independent operators cannot match. With proper management and coordination, the future of Henan’s auto parts industry looks increasingly promising.
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