There are significant issues with the quality of domestically produced car spare parts. As a result, many consumers turn to imported components, which often come at a higher cost. This situation makes it difficult for buyers to make informed decisions when purchasing a vehicle, as they must also consider long-term maintenance and repair costs—especially the price of spare parts. These factors now play a major role in influencing consumer choices.
According to reports from interviews, some vehicles have high-tech features and advanced configurations, which require high-quality spare parts. However, domestic production often fails to meet these standards, forcing manufacturers to rely on imports. Although imported parts are more expensive, they ensure better quality and reduce the frequency of replacements. Yet, there's a noticeable disparity in pricing among different brands and models, with the same part sometimes costing several times more depending on the brand.
This discrepancy highlights the low level of localization in the auto parts industry. Many joint ventures use KD (knock-down) production methods, which involve importing parts and assembling them locally. While this approach helps boost production quickly, it creates challenges when after-sales demand increases. Manufacturers often struggle to establish an efficient spare parts supply chain in the short term, leading to continued reliance on imports. With multiple layers of distribution, prices can inflate significantly before reaching the end consumer.
As a result, spare parts have become a key consideration for car buyers. Increasing the localization rate of parts could help reduce costs and improve competitiveness. Some companies, like Changchun Kai Kai franchise stores, already work with supporting suppliers that provide parts directly to manufacturers, dealers, or service centers. This system ensures consistency but also limits consumer choice and raises concerns about high prices.
Efforts to localize parts can lead to cost reductions and better pricing for consumers. For example, an economical sedan in China has achieved competitive spare parts pricing due to large-scale production and localization strategies. Such approaches are worth emulating by other domestic manufacturers.
Consumers are becoming more aware of the importance of after-sales costs, especially repair parts. A few thousand yuan can represent a significant portion of a car’s total cost, making affordability a major concern. There is growing expectation that spare parts prices will follow the same trend as car prices—becoming more reasonable over time.
China’s automotive industry has made progress in research and development over the past two decades, with a solid foundation and considerable scale. The question of whether to prioritize independent brand development remains a topic of discussion. Industry leaders emphasize that improving the overall quality of domestic spare parts is essential for building strong national brands.
This situation echoes the success of China’s home appliance industry, where strong autonomy and breakthroughs in technology led to global competitiveness. To achieve similar success, the auto parts sector must attract foreign investment and allow international companies to operate at scale. Only through such collaboration can China enhance its overall spare parts industry.
While the low localization rate is a challenge, it’s important to recognize that global automotive companies rely on collaborative development and global sourcing. Even with external support, domestic R&D capabilities and determination remain crucial for long-term growth. After all, developing automotive products is a complex process that requires the participation of all stakeholders, including parts suppliers.
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