According to the latest data from the Ministry of Commerce, foreign capital controls most of the market share of auto parts sales, domestic sales of parts and components only account for 20%-25% of the whole industry, auto parts manufacturers with foreign backgrounds account for 75% of the entire industry. In the above, among these foreign-invested suppliers, wholly-owned enterprises accounted for 55%, Sino-foreign joint ventures accounted for 45%, and local components were mainly used for self-owned brand vehicles, which had a low market share.

In the "12th Five-Year Plan" automotive industry development plan drafted by the China Association of Automobile Manufacturers, China's auto production and sales volume will reach 20 million units in 2011 and 25 million in 2015, accounting for 30% of global vehicle production. In 2011, the national government adjusted the consumption stimulus measures for the auto industry by encouraging the purchase of cars to subsidize the development of new energy vehicles. Under the market growth expectation, we must pay more attention to changes in policy adjustments. In 2011, the national government adjusted the consumption stimulus measures for the automotive industry, from encouraging purchase of cars to subsidizing the development of new energy vehicles, which will have a slight impact on the post-market structural adjustment and exploration of new business models.

Due to the lack of independent research and development capabilities and core technologies, Chinese self-owned brand components can only use the resources and cheap labor to win the market. According to a survey, the profit of bicycles for many Chinese auto companies is below RMB 1,000. In the process of breakthrough in the mid-to-high end market, they were suppressed by foreign brands. The lack of technology and lack of brand power have caused many companies to fail. What is more serious is that while foreign brands stick to high-end, they further explore the low-end car market, making the original brand's original price advantage no longer exist.

In addition, local auto parts companies need to build their own brands in addition to strengthening their investment in technology research and development. Brands are the lifeblood of the company's long-term development. However, domestic auto parts companies have not done enough to protect trademark ownership in the auto parts sales and auto parts production and circulation areas. Trademarks as an important part of intellectual property rights are directly related to the vital interests of producers, operators and consumers. , is an important carrier for independent innovation capabilities and other intellectual property rights. It is responsible for the important role of protecting intellectual achievements in successfully entering the market and distinguishing sources of goods, and is the source of life for the company. Trademarks are the carrier of corporate wealth and also the carrier of corporate reputation. The biggest advantage of many foreign auto parts companies entering the Chinese market is that they have a certain brand influence in the market. Local auto parts companies must also attach importance to brand names and lay a solid foundation for the future development of the company.