Due to weak external demand and trade protection, China's auto parts industry's export transactions have declined, and the export situation in the short term is not optimistic. The analysis believes that competition in the industry will become increasingly fierce in the future, and industry reshuffle may be difficult to avoid. Enterprises should work harder to improve their technical level and product quality so as not to be eliminated. In addition, some companies report that the continuous appreciation of the renminbi and rising raw material costs have led to an increase in the price of auto parts. The price of the company's auto parts export products has increased by 10%-20%. Yao Wenping, vice president of the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, also believes that the reshuffle of the domestic auto parts industry is inevitable. It is impossible to upgrade an industry by relying on export tax rebates and other policies. Compared with the development of enterprises, the competition in the auto parts export market is becoming increasingly fierce. In the past, low-end products were still profitable. Now the profit margin of low-end products is very low, and enterprises are forced to develop high-end products. High-end products are embodied in patents with more independent research and development. He suggested that SMEs accumulate funds by expanding the market. On the basis of a certain financial strength, on the one hand, we will increase our independent research and development efforts, and on the other hand, we will acquire advanced technologies for overseas auto parts production through overseas mergers and acquisitions. In the context of the appreciation of the renminbi and rising labor costs, the export of China's auto parts this year will be full of challenges. The gross profit of most small and medium-sized auto parts companies in China is about 3-5%, and the academics estimate that the yuan will appreciate by 5% this year. This means that many companies face zero profit risks. As countries stimulate the gradual weakening or withdrawal of automobile consumption, the market recovery will show signs of slowing down, which will have a certain impact on the export of China's auto parts in the next stage. At the same time, due to the continuous increase in raw material prices and the RMB exchange rate, China's auto parts are directly weakened. The price competitiveness of products and the decline in export price advantages; in addition, foreign trade barriers are increasing, and the export environment is deteriorating, which has put a lot of pressure on China's auto parts exports. For small and medium-sized auto parts companies, increasing the research and development of technology and increasing the added value of auto parts products is the way to attract more export channels for auto parts. When the cost advantage is gradually lost, the profit of the auto parts industry can only rely on product innovation to compete in the market. Auto electronics Auto electronics Guangzhou Ruicheng Enterprise Services Co., Ltd. , https://www.rayparts.cn