Following traditional automotive manufacturer in Japan, US and EU, China has been increasing its vehicle production since 2012 and is projected to produce over 27 million vehicles by 2020.
A complete vehicle is assembled with large number of parts from OEMs, who produce their owned parts while at the same time look to “tier one” parts suppliers for the design and production of most components; "Tier one" parts suppliers, in turn, get parts and sub components from “tier two” and “tier three” companies down the stream. Specialty components and accessories that consumers purchase to upgrade the appearance or to enhance the performance of their vehicle are commonly from a lower tier manufacturers ( very few are aware of this though).
As more vehicles are being produced in China, more local manufacturers are getting involved in the automotive parts global supply Chain. To support the growth and R&D in this sector, with the guidance and supervision of China Association of Automobile Manufacturers (CAAM), several aftermarket parts production clusters are formed from North to South across China.
North China Cluster
Hebei (Qinghe)
Liaoning (Dalian)
Jilin province (Gongzhuling)
Central China Cluster
Zhejiang province (Yuhuan, Tiantai, Longquan, Ruian, Ninghai, Pinghu)
Jiangsu Province (Danyang, Baoying)
Hubei (Wuhan)
Anhui (Bengbu)
West Cluster
Chongqing
Sichuang (Neijiang)
South China Cluster
Guangdong (Guangzhou, Zhongshan)
Guangxi province (Liuzhou)
Apart from fulfilling domestic demand, a large percentage are being exported to overseas countries that’s why Central and South cluster are riding the wave of geographical advantage for being closer to the deep seaport, altogether representing more than 60% of total production output.
Considering most of the manufacturers from respective cluster are located far away from deep seaport, here is a comprehensive suggestion for export logistics arrangement via major gateways;
Dalian and Qingdao are both deep-sea port from which all major container shipping lines are offering direct route to US, Middle East and EU. However, there is limited solution for long-haul air freight
Shanghai and Ningbo have outpaced their counterpart i.e. Yantian/Shenzhen in South China
as far as shipping volume is concern, all container shipping lines are offering direct service from there to any major port around the world ( 11 days to LA is reality now). Shanghai is also improving its presence as a logistics hub in the region, more airlines are coming in to operate international route.
Pearl River delta region, solid logistics infrastructure built up from traditional manufacturing background. Direct shipping routes are available to any port of the world and thanks to the advantage of neighboring HK, freights that transported across the border are connecting efficient air route to any place of the world on the same day.
Besides traditional Sea and Air shipping for B2B volume customer, more logistics solutions are developed to meet the ever growing demand in B2C sector, also known as cross-border online selling.
Refer to statistics from automotiveaftermarket.org, the growth rate of online parts sales in US is about 16% per year. This includes replacement parts, aftermarket parts and accessories. The same is happening in many places of the world at a steady pace.
Development of ecommerce eliminates the geographical and communication barrier to buyer and seller, most of whom are getting used to this efficient way of doing business without speaking to a third party.
However, when it comes down to logistics arrangement in China, it is highly suggested to consult with a local freight forwarder who understands all the bits from the field, i.e.
Transportation mode: in Air shipping or Sea shipping, in FCL or LCL
Selection of gateway: a commonly overlooked but critical point that largely affects transportation cost
Consolidation and Entrepot: at origin or during transit
B2C cross border: labelling, repacking, Drop-shipping, e-packet etc
Drop us a line if you need any solution to your automotive parts shipment from China.
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