In the era of new energy vehicles, power batteries have become the core and key components, accounting for nearly 50% of the cost. Ningde is expected to break through the current situation of China's auto parts supply chain, which accounts for 2% of the global auto parts supply chain.

1. Ningde era: a major power that changes the pattern of the existing automobile industry chain. Since the "ten cities and thousands of vehicles" in 2009, China has been vigorously supporting the development of the electric vehicle industry and hopes to realize the "curve overtaking" of China's automobile industry. We believe that overtaking on curves is not limited to vehicle manufacturers. It is more realistic to concentrate on key parts in the midstream and break through the existing industrial chain pattern. For electric vehicles, the power battery link, which has the advantages of technical reserve and complete industrial chain, has become the best natural breakthrough. The Ningde era is a "great power and heavy weapon" that is expected to change the pattern of the traditional automobile industry chain.

Since the invention of automobile in the late 19th century, the automobile industry has experienced more than 100 years of development. A number of European, American, Japanese and Korean automobile industry groups, including Ford, Toyota, general motors, Volkswagen and Daimler, were born. It also gave birth to a set of mature automobile supply chain system and created world-renowned auto parts suppliers such as Bosch, mainland China, Delphi and electric equipment. According to the list of the top 100 global auto parts suppliers selected by American auto news, 28 Japanese enterprises were shortlisted, 22 American enterprises were selected, 17 German enterprises were shortlisted and ranked high, while only 5 Chinese enterprises were shortlisted and ranked low except Yanfeng auto accessories.

Note 1: each time the media selects the top 100, it needs the manufacturer to provide the company name, location, contact information and relevant data. Generally, enterprises with a high degree of internationalization and attach importance to the top 100 list will cooperate accordingly, so they may get a place. Some well-known manufacturers have large supporting business scale according to common sense, but they are not shortlisted, which may be that they have not provided relevant information.

Note 2: if the original unit is foreign currency, it shall be converted into RMB according to the exchange rate of June 5, 2018, and the market value shall also capture the data of June 5, 2018.

Note 3: the revenue in the table is the business revenue of the group's automobile sector, not the total revenue.

Generally speaking, compared with Europe, America, Japan and South Korea, China's automobile and auto parts industry is still in a backward state. China's automobile industry started late and its technology accumulation is relatively weak. In recent years, Geely, great wall, Chang'an and SAIC, which can compete with overseas automobile groups, have also stepped out of some excellent parts enterprises such as Yanfeng auto decoration and Junsheng electronics. According to the gap between the volume of our leading auto parts enterprises and the global auto parts enterprises in 2017, there is an obvious gap between the volume and the revenue of our leading auto parts enterprises.

Note: the market value is subject to the closing price on June 8, 2018.

China leads the world in automobile sales, while the sales level of parts, especially core parts, lags behind. According to the data of China Automobile Association, China sold a total of 28.88 million cars in 2017, while the total global car sales exceeded 90 million. The corresponding auto parts market has a scale of more than 10 trillion yuan, with huge space. However, looking closely at the list of the top 100 global parts suppliers, China's enterprises on the list had a total revenue related to auto parts of 142.2 billion yuan in 2016, accounting for only 3% of the total of the top 100. Moreover, China's independent parts leaders are also mainly concentrated in the fields of auto accessories and auto electronics, and there is still a large gap between the core auto parts field and overseas. According to the list of the top 100 global auto parts suppliers according to the statistics of American auto news, the revenue of independent brand suppliers in the field of transmission system and engine system accounts for less than 2%. Therefore, as a big country in automobile sales, China urgently needs to change to an automobile power.