The trend of automotive parts manufacturers separating from vehicle manufacturers and forming specialized parts groups is becoming increasingly globalized. Almost all internationally renowned automotive and parts companies have established joint ventures or wholly-owned subsidiaries in China, with over 1,000 such joint ventures introducing technology. A number of domestic automotive and parts companies with high technological content, good efficiency, and large scale are gradually emerging. With the international automotive industry implementing a "global sourcing" strategy for parts and international multinational automotive companies pursuing localization strategies, a huge gap will emerge in the domestic parts market. By 2010, the domestic output value of China's automotive parts industry will reach approximately 700 billion yuan. The production prospects are broad, and the potential for value appreciation is enormous.
The Chinese shock absorber market size is projected to exceed 62 billion yuan by 2025 and is expected to exceed 90 billion yuan by 2026, with a compound annual growth rate of approximately 5.8%.
The penetration rate of new energy vehicles has exceeded 42%, leading to a surge in demand for lightweight, high-damping, and electronically controlled shock absorbers, driving the rapid penetration of high-end products such as CDC (Continuously Variable Damping), air suspension, and electromagnetic dampers.
