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Foreign auto parts makers have brought great challenges to China's homegrown ones. Currently, Beijing is developing policies to encourage home auto parts makers to be more competitive through mergers and acquisitions (M&A) or by going public. As a result, a boom in M&A is on the way.

As for the layout of the sector, currently five major auto-part making regions have come into being in China. They are: Bohai Coastline, Yangtze Delta, Zhujiang Delta, Hubei province, and Mid & Western China. Among them Zhejiang Province has 1,279 auto parts makers, the most in China, and accounts for 16.9% of the auto industry in terms of the number of manufacturers. The top six provinces of China, again in terms of the number of manufacturers, are Zhejiang, Jiangsu, Shandong, Hubei, Shanghai, and Guangdong, which have 58% of China's makers in the auto industry.

And as for demand and supply, China's auto parts sector is able to satisfy 60% of the country's market demand in terms of variety of products, and 70% as for market in general. Here the supplies of labor-intensive and material-intensive products, such as windscreens, tires, fuel tanks, air-cleaners and bearings, are far beyond the market demand, so some of those products are for export, while the supplies of technology-intensive parts, including engines, automatic transmissions, electronic fuel injection systems, airbags, and ABS, are far behind market demand at home, and so the gap is filled mainly with imports.The news come from http://www.bossgoo.com/