China Auto Parts in Global Markets: 2026 Report
2026-06-12
I. Steady Export Growth, Strong Gains in Emerging Markets
In 2025, China’s total auto parts exports reached $59.051 billion, representing a year-on-year increase of 4.07%, forming a “three pillars” pattern alongside complete vehicle exports and home appliance exports within Chinese manufacturing exports. By category, body parts led with $10.035 billion in exports; braking systems followed at $8.119 billion; and wheel systems reached $7.048 billion. High-growth categories such as window parts and steering systems showed significant increases, reflecting China’s accelerating manufacturing advantages in electrified and intelligent components.
In terms of export destinations, the market shows a dual-track pattern of deep cultivation in mature markets + breakthroughs in emerging markets. The US remained the largest export destination, followed by Japan, Mexico and Germany. Among emerging markets, exports to Russia increased by $590 million, while Mexico, Malaysia, Vietnam, Thailand and other Southeast Asian countries became the fastest-growing core markets. In the first quarter of 2026, China’s auto parts exports reached $23.83 billion, up 3.7% year-on-year, maintaining stable growth momentum.
II. Accelerated Offshore Capacity Build-out, "Produce Where You Sell" Model Becomes Mainstream
Facing trade barriers including the US Section 301 tariffs (25%), the China-EU price undertaking mechanism for EVs (replacing previous countervailing duties of up to 35.3% with minimum export prices), and Mexico‘s 7%-36% tariffs on non-originating auto parts effective January 2026, Chinese auto parts companies are accelerating their transition from product exports to offshore localized production.
Lizhong Group has achieved full production at its Mexico plant with annual capacity of 3.6 million aluminum alloy wheels, with Phase I (1.8 million units) already operational in 2024 and Phase II (1.8 million units) commissioned in Q3 2025. Xusheng Group has its Mexico base in production, with its Thailand base expected to come online in H2 2026; in January 2026 it secured an 8-year, approximately RMB 7.8 billion purchase order from a North American NEV manufacturer. Tuopu Group has achieved 62% local procurement at its Mexico facility, meeting USMCA rules of origin and enjoying zero tariffs on exports to the US.
Morgan Stanley reports that Chinese auto parts suppliers are expanding overseas at an unprecedented pace. Mexico, Eastern Europe and Southeast Asia have become popular investment destinations. Xingyu Co., Ltd. put its Serbia plant into operation in 2021, with over 60% of its 2024 overseas revenue coming from this base. Desay SV is also building capacity in Indonesia, Mexico and Spain. The report forecasts that by 2030, Chinese parts companies will capture a share exceeding 10.1% of overseas markets, equivalent to approximately $240 billion in market size, representing an estimated 12% CAGR.
III. New Energy Components Reshape the Landscape, Local Suppliers Gain Global Recognition
In the field of NEV core components, Chinese suppliers are gaining recognition from global OEMs. Xingyu Co., Ltd. has entered the supply chains of Mercedes-Benz and BMW, and Desay SV has secured smart cockpit projects for global brands such as Volkswagen and Toyota.
In the 2025 global automotive supply chain top 100 list, the number of Chinese companies increased by four, reaching a record 17 companies. New entrants include Sailun Group, Desay SV, Tuopu Group and Ningbo Huaxiang. CATL leads among Chinese parts companies with RMB 253 billion in revenue.
In the Southeast Asian market, the Thai government has clearly prioritized localized development of its automotive supply chain and is actively cultivating local suppliers. Chinese Tier 1 suppliers are entering a critical window of opportunity — Thailand‘s Tier 1 supply base has long been dominated by Japanese companies, leaving significant gaps in NEV core areas such as batteries, electric drive systems and autonomous driving technologies. Chinese suppliers are now well-positioned to fill these gaps. The market share of Chinese parts in Thailand has risen from less than 5% in 2018 to 18%.
IV. CATL Leads "Service Going Global", Accelerating Global NEV Aftermarket Expansion
On January 10, 2026, CATL’s global new energy aftermarket service brand NING Service opened its first Middle East experience center in Riyadh, Saudi Arabia — also the largest NEV aftermarket service center in the Middle East, covering over 7,000 square meters. It provides full lifecycle services including battery diagnosis, repair, maintenance, rework, training, recycling and warehousing/logistics, covering seven product categories such as passenger vehicles, commercial vehicles and energy storage systems.
To date, NING Service has established over 1,200 professional service stations across 76 countries, deployed 73 parts warehouses totaling over 370,000 square meters in floor area, served over 6 million EVs cumulatively, and certified more than 9,700 NEV aftermarket professionals [15†L19-L20][16†L22-L24]. Saudi Arabia is accelerating its Vision 2030 initiative, targeting 30% vehicle electrification by 2030, creating historic opportunities for the Middle East NEV market.
V. Cross-Border E-Commerce and After-Sales Network Development Go Hand in Hand
E-commerce platforms are becoming a vital channel for Chinese auto parts going global. eBay‘s Commercial Vehicle Parts Going Global report notes that the average age of commercial vehicles in Europe and the US exceeds 12.8 years, leading to supply shortages for older models through offline channels and making online platforms the preferred purchasing channel. Online penetration is growing at an annual rate of 10%, with global online auto parts sales approaching $40 billion in 2023 — a share expected to rise to 25% by 2035. High-value aftermarket branded parts are priced 30%-50% lower than local dealer channels, creating significant opportunities for Chinese sellers.
Traditional automakers are also accelerating their presence. FAW Jiefang has signed a strategic cooperation agreement with Cainiao Group to jointly build a cross-border auto and parts e-commerce platform covering cross-border logistics, cross-border payments and global marketing. FAW Jiefang products are sold in 77 countries and regions worldwide, with 315 core dealer partners.
On the overseas after-sales service network front, XPeng Motors is actively expanding its global footprint, having opened service centers or integrated sales and service outlets in New Zealand, Morocco, Tunisia, Egypt and elsewhere in 2026. BYD has built a sales and service network across 32 European countries, targeting over 1,000 locations by the end of 2025 and over 2,000 by the end of 2026. Great Wall Motors has established a regional parts hub in the Middle East. SAIC Group has achieved 70% parts localization in Thailand, with repair parts supply lead time controlled within 48 hours. BYD has committed an additional $6 million in Cambodia to build a dedicated parts warehousing center spanning over 5,000 square meters.
VI. After-Sales Service Gaps Urgently Need Addressing
Despite sustained growth in vehicle exports, after-sales service remains a critical shortfall. Carlos García, Vice President of Solera Group, has noted that due to service network uncertainties and a lack of parts data, Chinese NEVs currently suffer a 15% to 25% residual value discount compared to their European and Japanese peers — a gap driven entirely by ecosystem factors rather than product quality. Chen Jingjing, Secretary General of the Auto Division at the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, points out that many Chinese companies going global suffer from the shortcoming of “heavy on sales, light on after-sales”. Most automakers fully delegate overseas after-sales to agents without standardized oversight, leading to inconsistent performance in network coverage, parts supply and repair efficiency — yet all end-user problems ultimately damage the OEM‘s brand equity.
BYD’s parts prices overseas are relatively high; genuine parts are generally priced more than five times domestic levels, reflecting an aftermarket supply chain still under construction. Most genuine parts must be shipped from China, incurring layers of freight, tariffs and warehousing costs, and mature aftermarket alternatives are difficult to find overseas. Some industry practitioners candidly note, “The average replenishment cycle for three-electric parts is 45 days, but local users’ tolerance limit is seven days.”
In addition, the phenomenon of “zero-kilometer used cars” in the used vehicle export market has also drawn attention. Some companies export quasi-new vehicles that have not passed overseas regulatory certification or undergone localized adaptation, seriously disrupting local new car pricing systems and damaging the brand image of Chinese cars.
VII. Future Outlook: From "Selling Products" to "Building Systems"
Looking across the entire landscape, Chinese auto parts are transitioning from simple product exports to a Phase 2 upgrade of ecosystem going global. As industry representatives have consistently emphasized at automotive globalization events, "We cannot just export products; we must achieve the holistic export of supply chains and service systems."
Future competition will increasingly manifest as a comprehensive contest of brand strength, service systems and localization capabilities. Overseas market competition ultimately hinges on sustainability — after-sales support, parts availability, customer repurchase and local reputation are the core lifelines for long-term commitment in overseas markets. As production capacities at Chinese parts manufacturing bases in Mexico, Thailand and beyond continue to ramp up, and as cross-border e-commerce and after-sales networks further develop, China‘s competitiveness in the global auto parts market is poised for further improvement
China's New Energy Vehicle Exports Hit Historic High in April 2026
