1. Overview of China’s Automotive Industry
China’s automotive market is the largest in the world and a critical player in the global supply chain. In 2022, China produced 27.02 million vehicles and sold 26.86 million, accounting for nearly one-third of the global automotive market. Traditional fuel vehicles remain dominant, representing 65% of total sales. Despite the rapid growth of new energy vehicles, fuel vehicles continue to meet long-term demand, particularly in third- and fourth-tier cities and rural areas.

The Chinese government has introduced a series of policies to guide the automotive industry. The Automotive Industry Stabilization and Growth Plan (2023–2024) sets a sales target of 27 million vehicles in 2023, emphasizing supply chain optimization and technological innovation. The Automotive Industry Investment Management Regulation strictly limits new production capacity for fuel vehicles while ensuring industry stability and promoting transformation.

These policies, combined with robust market demand, ensure continuous growth in China’s automotive market. They also create substantial opportunities for companies involved in supply chain optimization, technical support, and market research.

2. Analysis of Automotive B2B Market
China’s automotive B2B market spans components manufacturing, supply chain management, and after-sales services, forming a complex yet stable ecosystem. In 2022, China’s auto components market reached ¥4.1 trillion ($570 billion), growing by 7.5% year-on-year. Fuel vehicle components, particularly engines and transmissions, remain the market’s core. Leading domestic companies like Weichai Power and Fast Gear compete closely with global giants such as Bosch and Continental.

The automotive consumables market is another key segment of the B2B industry. According to Statista, China’s lubricants market in 2023 was valued at ¥28 billion ($4 billion), with 60% driven by the automotive sector. China is also the world’s largest tire producer, manufacturing over 900 million tires in 2022, of which 580 million were exported, accounting for 40% of the global export market. Domestic brands like Zhongce Rubber and Linglong Tire dominate the mid-range market, while international brands such as Michelin and Bridgestone maintain strong positions in the premium segment.

In the after-sales service market, China’s automotive aftermarket reached ¥1.6 trillion ($220 billion) in 2023 and is expected to grow at a 6% compound annual growth rate (CAGR) through 2028. The rise of digital transformation has prompted companies to adopt integrated online and offline service models, enhancing operational efficiency and customer satisfaction.

3. Key Players and Competitive Landscape
China’s automotive industry is dominated by major players, including vehicle manufacturers, component suppliers, consumable producers, and service providers. In 2023, the top ten automakers accounted for 88% of total sales. State-owned enterprises like SAIC Motor, FAW Group, Dongfeng Motor, and Changan Automobile lead the market, while foreign brands such as Toyota and Volkswagen retain strong competitiveness in the premium segment.

In the components sector, China exported auto parts worth $85 billion in 2022, a 10.2% increase year-on-year. Domestic suppliers like Weichai Power hold significant advantages in the heavy truck market, while international players like Bosch and Continental dominate in automotive electronics and intelligent manufacturing. Fuel vehicle core components such as engines and transmissions remain focal points of competition.

The consumables market is highly competitive. In the lubricants segment, major players like Shell, Mobil, and Sinopec lead the market, with Shell holding a 15% market share. In the tire industry, Zhongce Rubber and Linglong Tire are prominent domestic brands, while Michelin and Bridgestone dominate the premium and racing markets.

4. Opportunities and Challenges
China’s automotive market presents diverse opportunities alongside significant challenges. By 2025, automotive sales in China are projected to stabilize at 30 million units annually, with strong demand for fuel vehicles in non-metropolitan areas. The used car market is a notable growth driver; in 2023, transaction volumes reached 20.1 million units, with a market value exceeding ¥1 trillion ($140 billion). Policies such as the removal of regional sales restrictions and optimized tax policies have further boosted demand for components and repair services.

The demand for automotive consumables remains robust. Fuel vehicles account for 78% of the lubricants market, with a steady CAGR of 3.5%. In the tire segment, China’s 2023 tire export value reached $21 billion, an 8.5% year-on-year increase, underscoring its global manufacturing competitiveness.

However, the industry faces significant challenges. The implementation of China VI emission standards and the gradual rollout of the new energy vehicle credit system have imposed additional technical and cost pressures on fuel vehicle manufacturers. Furthermore, supply chain disruptions, global market volatility, and fierce competition in core technologies pose risks to business growth.

To navigate these complexities, companies must leverage comprehensive market research, adopt precise supply chain strategies, and prioritize digital transformation to capitalize on opportunities and mitigate challenges in China’s dynamic automotive market.