(JW Insights) Aug 15 -- China’s exports of car parts surged 10.1 percent between January and July over the previous year to $46.4 billion, according to the latest data from the General Administration of Customs.
The steadily growing auto after-sales market and more companies transitioning to cross-border e-commerce contributed largely to the increase, Yicai Global reported on August 14.
With the continued increase of global automobile ownership, parts exports were not hit much by the overall contraction in foreign demand, an auto and motorbike parts salesman based in Shanghai told Yicai.
The auto parts industry will continue its upward trend in the long run, said Zhang Peng, general manager at Changzhou Wenqi Automobile Fittings Factory. “The longer a vehicle is used, the more spare parts it needs, so long as it isn't scrapped.”
Greater use of e-retail channels is also aiding exports. Wenqi realized $10 million in cross-border e-commerce sales last year, Zhang said. It began building an export business tailored to individual customers on US e-retailer eBay in 2019 and has not looked back since.
“On eBay, Chinese sales of auto and motorbike parts almost doubled this year from last year,” said Yi Peng, a manager in California-based e-Bay’s international trade division.
Sales of auto and motorbike parts logged an over 40 percent jump this fiscal year from the year before thanks to strong overseas demand, data from e-commerce giant Alibaba Group Holding showed. And the upward trend is likely to continue in the second half.
“We expect 2023 to be our most profitable yet as the cost of shipping has fallen back to where it was several years ago and the Chinese yuan is also depreciating," said Cai Yizhen, e-commerce operation director at an auto parts firm, according to the Yicai Global report.
(Yuan XY/Gao J)
