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The analysts forecast the Auto Parts Manufacturing industry in China to grow at a CAGR of 14.98 percent over the period 2012-2016. One of the key factors contributing to this growth is the increased Passenger Vehicle market in China. Auto Parts Manufacturing industry in China has also been witnessing a globalization of the Chinese auto parts manufacturers. However, the increasing raw material prices and employee wages in China could pose a challenge to the growth of this market.

The key vendors dominating this market space include Beijing Hyundai Mobis Automotive Parts Co. Ltd., Shanghai Huizhong Automotive Manufacturing Co. Ltd., Wanxiang Group Corp., and United Automotive Electronic System Co. Ltd.

The other vendors mentioned in this report are Changchun Faway Automobile Components Co. Ltd., Dongfeng Motor Suspension Spring Co. Ltd., Shaanxi Fast Gear Co. Ltd., and Yanfeng Visteon Automotive Trim Systems Co. Ltd.

Commenting on the report, an analyst from TechNavio's Automotive team said: As a result of the rising industry challenges, domestic players in the Auto Parts Manufacturing industry in China are moving toward globalization and are entering new untapped and growing automobile markets across the globe. Globalization offers Chinese auto parts manufacturers benefits such as high economies of scale, new growth opportunities, and greater flexibility in terms of operations. It also minimizes cultural and communication barriers, and thus increases efficiency. Furthermore, globalization helps manufacturers remain highly competitive by reducing various operational and process costs.