Due to the large number of segmented interior products and numerous industry participants, the market has a low degree of concentration, presenting a highly competitive and dispersed situation.
Fintech News app learned that Tianfeng Securities released a research report stating that under the trend of the 'four modernizations' of automobiles, automotive parts are continuously transforming and upgrading. They are shifting from purely pursuing decoration to simultaneously focusing on functionality and decoration, in order to continuously enhance the driving and riding experience. Taking the intelligent cockpit as an example, by matching electronic, intelligent, and networked parts products to the traditional automotive cockpit, it achieves intelligent interaction between people, vehicles, and roads, meeting the diverse needs of consumers. Due to the large number of segmented interior products and numerous industry participants, the market has a low degree of concentration, presenting a highly competitive and dispersed situation. In the future, with the growth of domestic brand automobiles in China, local automotive interior companies with significant advantages in cost control, collaborative development, and rapid response will usher in development opportunities.
Tianfeng Securities' main points are as follows:
Automotive parts belong to the automotive body system, with a wide variety of product types.
Automotive parts belong to the automotive body system, with a wide variety of product types. Cars are divided into commercial vehicles and passenger vehicles according to their use, both of which are composed of four major systems: powertrain, chassis, body, and electrical equipment. Automotive interior assembly products are mainly used in the car body system. Automotive parts are divided into two categories: interior and exterior parts, with a higher proportion of interior parts. Automotive interior parts include dashboard, steering wheel, seats, door interior panels, door pillars, headliners, carpets, etc. Automotive exterior parts include bumpers, lights, rearview mirrors, air intake grilles, front grilles, and spoilers.
The transformation towards electric and intelligent technology brings about new developments.
Initially, automotive interiors were relatively 'rudimentary'; around 1959, there was a shift towards complexity and refinement. By 1965, initial electronic developments began, and the classic T-shaped layout was established. In 1998, attention was focused on human-computer relationship comfort, visibility, and driving experience. Since 2007, with the rise of electrification and autonomous driving, the design style of automotive interiors has transitioned towards integrated and technological sophistication.
Under the trend of the "four modernizations" of automobiles, automotive trim parts are constantly transforming and upgrading, shifting from the original pursuit of decoration to a combination of functionality and decoration, in order to continuously improve the driving experience. Taking the smart cockpit as an example, by matching electronic, intelligent, and interconnected trim products with the traditional automotive cockpit, it achieves intelligent interaction among people, vehicles, and roads, and meets the diverse needs of consumers. As automobiles continue to evolve from transportation tools to smart mobile spaces, the level of electronic and intelligent trim products will gradually increase, becoming an important product that affects the driving experience of consumers.
Market Size and Competitive Landscape
The market concentration is relatively low and the competitive landscape is scattered. Due to the wide range of products in the automotive interior segment and the large number of industry participants, the market concentration is low, and it presents a highly fragmented competitive situation. In 2022, the CR3 of the global automotive interior and exterior trim parts (excluding seats and headlights) market was 33.56%; in 2020, the CR3 of the domestic automotive interior trim parts market was 38.65%.
Looking at the global competition in the automotive interior market, the global market is mainly dominated by foreign-funded and joint venture companies. Participants in the automotive interior trim parts industry are divided into foreign-funded companies, joint venture companies, and domestic-funded companies. Since foreign-funded automobile manufacturers rarely change their automotive interior trim parts suppliers, domestic automotive interior trim parts companies mainly rely on domestic independent brand automakers or a few joint venture automakers, and are at a disadvantage in international competition. In the future, with the growth of China's independent brand automobiles, domestic automotive interior trim parts companies that have significant advantages in cost control, collaborative development, and rapid response will usher in development opportunities.
Investment Recommendations: It is recommended to pay attention to Jiangsu Xinquan Automotive Trim (603179.SH), Shanghai Daimay Automotive Interior (603730.SH), Huayu Automotive Systems (600741.SH), Ningbo Huaxiang Electronic (002048.SZ), and Jiangsu Changshu Automotive Group Trim (603035.SH).
Risk Warning: Unexpected increase in raw material costs leading to lower-than-expected gross margin; intensified industry competition; lower-than-expected automobile sales.
