Market research on China's automotive electronics industry and "14th Five-Year Plan" development trend research report

Four aspects look at the development trend and opportunities of the automotive electronics industry

The main laws and regulations and policies of the relevant industries have the following impact on the operation and development of automotive electronics enterprises:

(1) Encourage the upgrading of energy-saving and emission-reduction technologies and promote the development of the new energy automobile industry

The implementation of the "National VI Standard" promotes the application and development of automobile energy-saving and emission-reduction technologies. The "Heavy-duty Diesel Vehicle Pollutant Emission Limits and Measurement Methods (China Phase VI)" and "Light Vehicle Pollutant Emission Limits and Measurement Methods (China Phase VI)" were implemented on July 1, 2019 and July 1, 2020, respectively, and the "National Vi Standards" put forward higher requirements for car companies in terms of fuel efficiency and the technical level of exhaust gas treatment.

At the same time, in recent years, the state has successively issued policies such as the "New Energy Vehicle Industry Development Plan (2021-2035)" and "Announcement on the Relevant Policies for The Exemption of Vehicle Purchase Tax for New Energy Vehicles", calling for the early realization of "carbon peak" and "carbon neutrality", stimulating the consumer demand for new energy vehicles, and actively guiding the new energy automobile industry to high-quality development.

Under the guidance of a series of energy-saving and emission-reduction and new energy vehicle support policies, enterprises in the industry have increased their investment in research and development of low-carbon technologies in order to seize the first-mover advantage in the wave of industrial transformation, and energy conservation and emission reduction and the development of new energy vehicle products have gradually become the mainstream trend in the industry.

(2) Encourage domestic auto parts enterprises to improve the level of supporting facilities

The Chinese government has always attached importance to the development of the automobile industry, raised the automobile power to the national strategic height, and put forward the program of manufacturing power. In recent years, China has issued a series of relevant industrial policies such as the "Automobile Industry Development Plan (2012-2020)" and the "Three-Year Action Plan for Enhancing the Core Competitiveness of the Manufacturing Industry (2018-2020)", emphasizing the need to enhance the research and development and production capacity of key components, encourage enterprises to be specialized and new, support the development of vehicle and parts manufacturers that encourage independent brands, plan to cultivate a number of parts manufacturers with international competitive advantages, and support the localization of vehicle and parts production. It has created a good policy environment for the development of China's auto parts industry.

In summary, the competent departments of the relevant industries are responsible for formulating industrial policies, guiding technological upgrading and technological transformation and implementing other macro-control measures, playing a macro-control role in planning and monitoring the development of the industry, contributing to the healthy and orderly development of the industry, providing a good external environment for the operation of automotive electronics enterprises, and having a positive impact on the future business development of automotive electronics enterprises.

Market research on China's automotive electronics industry and "14th Five-Year Plan" development trend research report

Source: Compiled by Puhua Youce

1, three aspects to see the technical characteristics and level of the automotive electronics industry

(1) Mold development technology

Mold development technology is an important factor affecting the precision of products, involving basic materials, computers, precision machining and testing, digitalization and intelligent control, management and other multidisciplinary technologies, with the characteristics of technology-intensive and cross-cutting. Mold is known as the "mother of industry", its development by the national level of close attention, with the support of the national industrial policy, the mold industry has been from the past fitters as the core of the extensive workshop operation, and gradually transitioned to precision equipment and industry standards as the guarantee, to design ability and manufacturing technology as the core of the intensive modern management, mold development technology has improved significantly. At present, the mold industry is developing in the strategic direction of precision, automation, intelligence, new type and integration. In recent years, with the three-dimensional digital technology and simulation technology in the design field of automotive electronic products and connector products have been widely used, effectively promoting the improvement of the digital capabilities of the mold industry, through strengthening the construction of information systems can effectively optimize the mold manufacturing process and process, becoming one of the future priorities of the industry's technology development.

(2) Manufacturing process technology

The main manufacturing technologies of automotive electronics and connector products and other parts include injection molding technology, stamping technology, machining technology, die casting technology and related testing technology, which are used to change the physical structure, mechanical properties and chemical properties of plastics, metals and other materials, and improve the service life, stability and appearance of materials. At present, the above-mentioned injection molding, stamping and other core processes are widely used in the production process of parts and components, and the requirements for accuracy are gradually improved, and the main production processes are moving towards the standard of high precision, high speed and high stability. At present, the overall level of manufacturing technology of most domestic enterprises is low, and there is still a certain gap between processing accuracy and yield rate and advanced level.

In addition, in the process of product production, enterprises in the industry test the parameters of the product through various types of testing equipment to meet the relevant requirements of downstream customers. Most of the product testing in the industry adopts off-line sampling or in-line stand-alone testing. With the development of automation technology, automated inspection technology and automated assembly equipment have been applied synchronously to achieve 100% online inspection of products. Automatic detection is more common CCD visual recognition technology, which can identify defective products online, and is currently used more and more widely in the industry.

(3) Automated production line design technology

With the rise of domestic labor costs and the improvement of product quality stability requirements, automated production lines have been more and more applications in the industry, and continuously improve the production efficiency and product quality of enterprises. With the development of automation design technology, automated production lines can integrate multiple production processes, reduce manpower investment in the production process, and improve product consistency and product quality. At the same time, automotive electronics and other products have increasing requirements for the precision and complexity of products, and enterprises in the industry have gradually increased investment in the development of automated production lines to quickly respond to customer product development and production requirements. In addition, the flexible automation production line design technology can realize a production line or a piece of equipment through the mechanism change, program switching, etc., the production of a variety of products, the design technology can reduce the idle machinery and equipment, reduce production costs, such design technology has become the core technology of automated production line design.

2, four factors to see the development trend of the automotive electronics industry

(1) Emission standards are becoming stricter, driving the iteration and new demand of automotive electronic products

In December 2017, the "China VI Standard" for light vehicles was released, and the standard set two emission limit schemes of China VI A and China VI B, which were implemented on July 1, 2020 and July 1, 2023, respectively. According to the "Three-Year Action Plan for Winning the Blue Sky Defense War" issued by China on July 3, 2018, most key provinces and cities such as Beijing, Tianjin, Hebei, Henan, Shandong, Shanghai, Jiangsu and Zhejiang will implement the China VI B emission regulations ahead of Schedule 1 July 2019. The National VI standard for heavy-duty diesel vehicles will be implemented in 2020; the current standard for heavy-duty gasoline vehicles is China IV regulations, and the actual business has stopped declaring in accordance with China IV regulations, and its National VI regulations are being formulated.

The further tightening of the National VI standard puts forward higher requirements for the technological progress of energy conservation and emission reduction in the automotive industry, and it can be seen from the solution of the main emission gases and particulate matter of automobile exhaust that increasing the injection pressure is an effective method of energy conservation and emission reduction.

In order to achieve the National VI standard and even further stringent emission standards in the future, OEMs generally achieve this by reducing vehicle weight, increasing engine pressure and exhaust gas treatment. To this end, the introduction of high-pressure injectors, pressure sensors, fuel tank leakage diagnosis modules, exhaust gas treatment units and other products has promoted the new demand for automotive electronic products and conformed to the development trend of low-carbon automobiles.

(2) The penetration rate of automotive electronic products continues to increase

With the continuous development of the automotive industry and electronic information technology, as well as people's pursuit of driving safety, comfort and entertainment, the application field and application proportion of automotive electronics technology are expanding. Body electronic control technology has been relatively mature and further iterated; changes in travel modes and lifestyles will prompt people to increase the demand for the configuration of on-board electronic control systems. Automotive body electronic control system and on-board electronic control system have gradually become the standard configuration of automobiles, and the proportion of applications in low-end models continues to increase.

Under the trend of intelligent networking, the car gradually from the traditional means of transportation to a new generation of intelligent mobile space and application terminals with transportation, entertainment, office, communication and other functions at the same time; under the trend of low carbon, the new energy vehicle three electric system (that is, battery, motor, electronic control) to the transformation of the traditional power system of the car, resulting in automotive electronics accounting for a larger cost of the vehicle, energy saving and emission reduction technology related products are also mostly automotive electronic products, automotive electronic technology application continues to deepen, the proportion of bicycle automotive electronic cost continues to increase, The penetration rate of automotive electronics is constantly increasing.

(3) The trend of electrification and intelligence has prompted automotive electronics to enter a period of innovation

Automotive electronics has become the core element of automotive electrification and intelligent transformation. Electrification brings subversive changes in the automotive power system, around the control and management of the on-board power battery, automotive electronics has become the key to the success of the battery power system, playing a central role in the control of the electric powertrain and battery management system. Intelligence brings automobile travel and vehicle upgrade revolution, relying on automotive electronic and electrical architecture upgrades, high-performance sensors and high-performance computing are widely used, vehicles have gradually entered the era of automatic driving, digital upgrades and intelligent networking promote cockpit intelligence, software OTA greatly reduces automobile production and maintenance costs, and automotive electronics have become the hardware foundation of software-defined cars in the intelligent era. Related forecasts show that the value of automotive electronics-related BOM (bill of materials) will increase from $3,130 per vehicle to $7,030 per vehicle from 2019 to 2025, of which the value of electrified BOM will increase by $2,235/car, and the value of intelligent BOM will increase by $1,665/car.

Under the development trend of automotive electrification and intelligence, automotive electronics have entered an innovative growth cycle, and power electronics, sensors, and computing chips are widely used in various functional modules of electric vehicles and smart cars, and the value of the automotive electronics supply chain has increased significantly. At the same time, with the wide promotion and application of consumer electronics, consumers increasingly prefer to integrate more functional electronic products, and the popularity of the Internet has also prompted consumers to increase demand for in-vehicle communication and entertainment functions, and continuously improve the penetration rate of automotive electronics. In the future, the integration of automotive electronics technology and the Internet can further lead the rapid development of the automotive electronics industry.

(4) The automotive aftermarket has gradually expanded and become an important part of the automotive electronics industry

With the gradual maturity of China's automobile manufacturing industry, China's automobile ownership continues to grow, automobile quality continues to improve, in the dual drive of ownership and average vehicle age, China's automotive aftermarket is also developing rapidly. According to the data of the China Association of Automobile Manufacturers and Deloitte's "2020 China Auto Aftermarket White Paper", the scale of China's automotive aftermarket reached 1.3 trillion yuan in 2019, and the market size growth rate in recent years has been more than 10%. Automobile intelligence, low carbon, networking and lightweight have promoted the demand for electronic integration devices, power devices and other related products in the automotive aftermarket industry, and at the same time, with the increase in ownership and the upgrading of resident consumption, the demand for automotive electronic products in the process of automotive after-sales maintenance and modification continues to increase. The automotive aftermarket has expanded year by year and has become one of the important growth points of the automotive electronics industry.

3, four aspects to see the automotive electronics industry opportunities

(1) Industrial policy is vigorously supported

With the development trend of automobile intelligence, low carbon and networking, automotive electronics technology, as an important basic technology, has been strongly supported by the national industrial policy. "Intelligent Vehicle Innovation Development Strategy", "New Energy Automobile Industry Development Plan (2021-2035)", as well as "Energy Saving and New Energy Vehicle Technology Roadmap 2.0" and "Intelligent Connected Vehicle Technology Roadmap 2.0" constitute the top-level design document system for the future development of China's automobile industry, and the state fully encourages automotive electronics industry enterprises to optimize production processes through technological innovation, technological upgrading, etc., improve production efficiency and product quality, and increase energy conservation and emission reduction and new energy-related technology research and development and industrialization. Promote the development of the automotive electronics industry. Various industrial support policies provide a favorable policy environment for the development of China's automotive electronics industry.

(2) The downstream market is vast

In recent years, China's economic level has been continuously improved, the per capita income of residents has increased year by year, and the market demand for automobiles, home appliances and other industries has been expanding. China's automobile sales have been ranked first in the world for many consecutive years, driven by the trend of automobile intelligence, low carbon and networking, the proportion of automotive electronic costs in the whole vehicle has gradually increased, the scale of the automotive electronics market is expected to grow steadily, and the growth of demand for automotive electronic products has provided development space for enterprises in the industry.

(3) The application and penetration rate of automotive electronics technology continue to increase

With the continuous development of the automotive industry and electronic information technology, as well as people's pursuit of driving safety, comfort and entertainment, the application field and application ratio of automotive electronic technology are expanding, and the automotive body electronic control system and on-board electronic control system have gradually become the standard configuration of the car, and the proportion of applications in low-end models continues to increase. At the same time, under the trend of intelligent, low-carbon and networked vehicles, the application of automotive electronics technology continues to deepen, the proportion of single-vehicle automotive electronic costs continues to increase, and the demand for automotive electronic components continues to increase.

(4) Global procurement of automotive products and the trend of localization of parts

Under the background of global economic integration, vehicle manufacturers and first-class auto parts companies actively promote the globalization of procurement, and compare and select the best procurement of required parts and components in combination with product performance, quality, price, supply conditions and other factors. With the vigorous development of China's automobile industry, the continuous improvement of the production and manufacturing level of enterprises and the continuous enrichment of enterprise management experience, China's auto parts enterprises have obtained good market opportunities in the process of globalization of automobile industry procurement, and gradually expanded their market share in the global market through close cooperation with downstream customers.

At the same time, vehicle manufacturers and internationally renowned first-class auto parts companies, driven by the localization industry policy of auto parts, are also gradually turning to local automotive electronics companies as suppliers of key parts for cost and timeliness.

Related industry information Puhua Youce Consulting "China Automotive Electronics Industry Market Research and "14th Five-Year" Development Trend Research Report", at the same time, Puhua Youce Consulting also provides industry research reports, industrial chain consulting, project feasibility reports, 14th Five-Year Plan, BP business plans, industrial maps, industrial planning, blue white papers, IPO fundraising feasibility study, IPO working paper consulting and other services.

Market research on China's automotive electronics industry and "14th Five-Year Plan" development trend research report

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