Parts prices are temporarily rising auto parts high profits into the countdown
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October 01 11:07:31, 2025
In recent months, the automotive market has seen a series of price adjustments, and as a result, consumers have become more informed and cautious when making car purchases. Beyond the desire for a one-time discount on a vehicle, they are now paying close attention to long-term maintenance costs. Many car owners realize that repair and maintenance expenses can often exceed the cost of the car itself, with parts and accessories being the biggest contributors to these costs.
While the auto market is currently experiencing aggressive price cuts, the accessories market has remained relatively stable—until recently, when some parts saw a general price increase. This situation has led many to view car accessories as the last remaining profit source in the industry. Now, as rumors circulate that prices may rise again, Hainan Mazda has taken an unexpected step by lowering the prices of over 200 parts for its Premar and Fumei models, with an average reduction of about 18%. Although the company claims this move is due to increased production scale and cost optimization, industry analysts believe it's more likely a strategic response to consumer demand for lower accessory prices, aiming to attract more buyers and gain a larger market share.
This shift has already triggered a ripple effect in the parts market. Recent inquiries from reporters to multiple car service providers in Beijing revealed that most expect no immediate price increases. Similarly, feedback from car owners at local repair shops also indicated that parts prices have remained stable. However, some experts note that while large-scale price hikes are unlikely, individual components may still see fluctuations. For example, certain imported parts might face higher costs due to supply shortages, while locally produced items could see price drops due to improved localization.
Looking back, the past few months saw a widespread increase in accessory prices, driven by rising global steel prices, exchange rate fluctuations, and other factors. In May alone, imported parts saw a 10-20% price increase, with some reaching up to 30%. Domestic parts also rose by 5-10%. These trends led to speculation that prices would continue to climb, prompting some analysts to suggest that manufacturers were not only reacting to material costs but also trying to recover lost profits.
As competition in the automotive sector intensifies, vehicle manufacturers are under pressure to cut prices, which has further squeezed their margins. To maintain profitability, they are increasingly focusing on controlling the supply chain and squeezing profits from parts suppliers. This dynamic puts domestic parts companies in a tough spot, as many are dependent on a single automaker and have little leverage.
Multinational brands like Volkswagen, General Motors, and Toyota have brought in foreign suppliers such as Bosch, Delphi, and Michelin, who dominate high-value components like engines, transmissions, and safety systems. Meanwhile, domestic manufacturers are largely confined to low-margin, general-purpose parts. This imbalance has left many Chinese auto parts firms struggling, as seen in the recent layoffs at Fuyao Glass, where over 1,500 employees were let go.
Despite these challenges, industry insiders emphasize that reducing accessory prices is becoming a trend. All players in the supply chain must work together to cut costs, as any weak link could jeopardize the entire industry’s competitiveness. OEMs and parts suppliers are not adversaries, but partners in a complex ecosystem. While the survival of the fittest will inevitably occur, the future of the automotive industry depends on collaboration, innovation, and sustainable growth.