Jilin's first three quarters of auto parts exports increased sharply

According to data from Changchun Customs, Jilin Province's auto and auto parts exports saw continued strong growth in the first three quarters of this year, reaching record levels. However, the rapid increase in auto parts imports over recent years has now hit its lowest point in five years, signaling a challenging situation for the industry. In the first nine months of 2024, Jilin exported $22.13 million worth of auto parts, marking an impressive 87.4% year-on-year growth. These products were mainly sold to 64 countries and regions, including the United States and South Africa, with the number of destinations increasing compared to 2004. The growth can be attributed to several factors. First, as global automotive manufacturing shifts toward China, foreign original equipment manufacturers (OEMs) are setting up factories or collaborating with local suppliers, boosting the development of China’s auto parts industry. Second, international automakers are ramping up procurement efforts in China, integrating it into their global supply chains and sourcing components for production plants worldwide. This creates significant business opportunities. Third, Jilin has developed strong technological capabilities in auto parts manufacturing, enhancing its export potential. Lastly, the implementation of the China-ASEAN Free Trade Agreement has led to tariff reductions on 7,000 types of goods, including auto parts, starting July 1, 2024, further supporting Jilin’s auto parts exports. Meanwhile, the sharp decline in auto parts imports highlights the difficult conditions in the domestic auto market. In the first three quarters of 2024, Jilin imported $490 million worth of auto parts, a drop of 61.1%, the lowest level in five years. The reasons for this decline include sluggish demand since October 2004, which led to unsold vehicles and reduced production by car companies, thereby decreasing the need for parts. Additionally, rising raw material costs—especially steel—and higher loan interest rates have kept vehicle production costs high, discouraging manufacturers from expanding output and limiting auto parts imports. This contrasting trend between exports and imports reflects the evolving dynamics of Jilin’s automotive sector, with growing export opportunities alongside ongoing challenges in domestic demand and import volumes.

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