In terms of income level, China's per capita disposable income has shown sustained and steady growth in recent years. Nevertheless, car ownership in China is comparatively low and remains at the popularization stage, especially in some second- and third-tier cities. However the significant surge in demand for cars provides a lot of space for sales growth. China thus has potentially the largest market for future development of the world's automobile industry. The huge consumer demand and the obvious advantages in resource costs have attracted more and more large multinational component suppliers to establish joint ventures or wholly-owned foreign enterprises in China.
In recent years, China's auto parts industry has been expanding and its status in the international market keeps rising. On the one hand, the enterprises have been enhancing their abilities in independent research and development and technological innovation and overseas market exploitation; thus their product competitiveness has become stronger. On the other hand, the costs and prices are relatively low. What's more, the favor of global auto makers and a number of industrial support policies have brought about rare development opportunities for the Chinese auto parts industry.