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Car market surges foreign investment giant auto parts giant China layout
According to recent reports, Wang Zude, a researcher at the China Automotive Technology and Research Center, highlighted that the global automotive industry is increasingly moving toward consolidation, with stronger companies forming strategic alliances. As a result, market competition has become more intense. Currently, the top six automakers worldwide account for 64% of total global production, while the top 16 auto parts suppliers capture around 40% of the world market share. This trend reflects a shift toward greater concentration and efficiency in the industry.
In China, the number of vehicles on the road has already reached 34 million, and industry experts predict a significant rise in the next five years, with the total expected to surpass 60 million. This massive growth potential has drawn substantial foreign investment into the Chinese market. Over 70% of the world’s top 100 auto parts suppliers have already established operations in China, and there are more than 1,200 foreign-invested companies manufacturing auto components within the country.
One notable example is Germany’s Bosch, which has made a major commitment to the Chinese market. The company has set up 20 factories, 10 representative offices, 5 trading companies, and an extensive network of 345 maintenance stations across the country. This level of investment underscores the confidence that global players have in China's long-term automotive prospects and its role as a key hub for manufacturing and innovation in the sector.